On September 8, 2023, Senior Vice President Patricia Kellerhals sold 3,459 shares of Commerce Bancshares Inc (NASDAQ:CBSH). This move comes as part of a series of transactions by the insider over the past year, during which Kellerhals has sold a total of 18,087 shares and purchased none.
Patricia Kellerhals is a seasoned executive with a wealth of experience in the banking industry. As the Senior Vice President of Commerce Bancshares Inc, she plays a crucial role in the company's strategic decision-making and operational management. Her recent sell-off of CBSH shares has sparked interest among investors and market analysts.
Commerce Bancshares Inc is a leading player in the banking sector, offering a wide range of financial services to its customers. The company operates through a network of branches and ATMs, providing services such as personal banking, business banking, wealth management, and investment services. With a market cap of $5.83 billion, CBSH is a significant player in the industry.
The insider transaction history for Commerce Bancshares Inc shows a trend of more sells than buys over the past year. There have been 16 insider sells and 2 insider buys in total. This trend could indicate that insiders believe the stock is overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, CBSH shares were trading at $47.01 each. This price gives the stock a price-earnings ratio of 11.71, which is higher than the industry median of 8.25 but lower than the company's historical median price-earnings ratio. This discrepancy suggests that the stock may be overvalued compared to its peers but undervalued based on its own historical performance.
The GuruFocus Value of CBSH is $74.38, resulting in a price-to-GF-Value ratio of 0.63. This ratio indicates that the stock is 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 business performance estimates from Morningstar analysts.
In conclusion, the recent sell-off by Patricia Kellerhals, coupled with the overall insider sell trend, may raise some concerns among investors. However, the stock's price-to-GF-Value ratio suggests that CBSH is significantly undervalued, potentially offering a good buying opportunity for investors. As always, investors should conduct their own research and consider their investment goals before making any investment decisions.
This article first appeared on GuruFocus.