On September 12, 2023, Senior Vice President Paula Petersen sold 2,068 shares of Commerce Bancshares Inc (NASDAQ:CBSH). This move comes amidst a year where the insider has sold a total of 2,068 shares and purchased none.
Paula Petersen is a key figure at Commerce Bancshares Inc, serving as the Senior Vice President. Her role involves making strategic decisions that shape the direction of the company. Her recent sell-off of CBSH shares is therefore noteworthy and may signal important insights into the company's current financial health and future prospects.
Commerce Bancshares Inc is a bank holding company that provides a diversified line of financial services, including business and personal banking, wealth management, financial planning, and investments through its affiliated companies. The company operates in approximately 330 locations in the central United States.
The insider transaction history for Commerce Bancshares Inc shows a trend of more sells than buys over the past year. There have been 2 insider buys and 17 insider sells in total. This could indicate a bearish sentiment among insiders, which may impact the stock's performance.
On the day of the insider's recent sell, CBSH shares were trading at $46.61 each, giving the stock a market cap of $5.86 billion. The price-earnings ratio stands at 11.78, higher than the industry median of 8.35 but lower than the companys historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, CBSH is significantly undervalued. With a price of $46.61 and a GuruFocus Value of $74.40, the stock has a price-to-GF-Value ratio of 0.63.
The insider's decision to sell shares could be based on personal financial needs or other factors unrelated to the company's performance. However, given the stock's undervalued status, it may also suggest that the insider believes the stock's current price does not reflect its intrinsic value. Investors should keep a close eye on further insider trading activity for potential clues about the company's future direction.
As always, insider trading should be only one factor in an investor's decision-making process. A comprehensive analysis of Commerce Bancshares Inc's financial health, market position, and industry trends is essential for making informed investment decisions.
This article first appeared on GuruFocus.