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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Commerce Bancshares (CBSH) Shares Are Sliding Today

CBSH Cover Image

What Happened?

Shares of regional banking company Commerce Bancshares (NASDAQ: CBSH) fell 4.7% in the afternoon session after the company reported third-quarter financial results that missed analyst expectations for both revenue and earnings per share. 

The bank reported earnings of $1.06 per share, falling short of the consensus estimate of $1.10. Revenue for the quarter came in at $441 million, missing forecasts of $446.4 million. Delving deeper into the results, other key metrics also failed to meet expectations. Net interest income, a crucial measure of a bank's core lending profitability, was $279.5 million, below the consensus estimate of $285.7 million. Additionally, the bank's efficiency ratio of 55.3%, a measure of expenses relative to revenue, was weaker than the 54.7% analysts had projected. Overall, the broad-based misses pointed to a challenging quarter for the bank.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Commerce Bancshares? Access our full analysis report here.

What Is The Market Telling Us

Commerce Bancshares’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Commerce Bancshares is down 12.9% since the beginning of the year, and at $53.78 per share, it is trading 24.1% below its 52-week high of $70.82 from November 2024. Investors who bought $1,000 worth of Commerce Bancshares’s shares 5 years ago would now be looking at an investment worth $1,178.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.

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