On September 18, 2023, Director Blackford Brauer of Commerce Bancshares Inc purchased 5,000 shares of the company's stock, marking a significant insider buy. This article will delve into the details of this transaction, the insider's history, and the potential implications for the stock's future performance.
Who is Blackford Brauer?
Blackford Brauer is a respected director of Commerce Bancshares Inc. With a wealth of experience in the financial sector, Brauer's decisions often carry weight in the market. Over the past year, the insider has purchased a total of 15,000 shares and has not sold any shares, demonstrating a strong belief in the company's potential.
About Commerce Bancshares Inc
Commerce Bancshares Inc (NASDAQ:CBSH) is a leading financial services company that provides a diversified line of financial services, including business and personal banking, wealth management, financial planning, and investment services. With a market cap of $5.99 billion, the company has a significant presence in the banking industry.
Insider Buying Analysis
The insider's recent purchase is noteworthy given the overall insider transaction history for Commerce Bancshares Inc. Over the past year, there have been 3 insider buys in total, compared to 17 insider sells. This suggests that the insider's purchase could signal a positive outlook for the company's stock.
The timing of the insider's purchase is also interesting. On the day of the purchase, shares of Commerce Bancshares Inc were trading for $48.1 apiece. This is significantly lower than the company's GuruFocus Value of $74.47, suggesting that the stock may be undervalued.
Commerce Bancshares Inc's price-earnings ratio is 12.02, higher than the industry median of 8.25 but lower than the companys historical median price-earnings ratio. This indicates that the stock may be priced reasonably compared to its earnings.
Furthermore, with a price-to-GF-Value ratio of 0.65, the stock appears to be significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, the insider's recent purchase of 5,000 shares could be a positive signal for the future performance of Commerce Bancshares Inc's stock. Given the stock's current valuation and the insider's history of purchases, investors may want to keep a close eye on this company.
This article first appeared on GuruFocus.