Zacks Investment Research Lowers Comerica (CMA) to Hold

Zacks Investment Research downgraded shares of Comerica (NYSE:CMA) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Shares of Comerica have outperformed the industry over the past six months. This is backed by the company's impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Comerica’s future prospects look promising as it improvised the financial targets for revenues and efficiency initiatives. It expects to deliver annual pre-tax income of about $270 million by the year-end 2018 through GEAR Up initiatives. Also, its steady capital deployment activities continue to enhance investors’ confidence. Though, escalating expenses and substantial exposure to commercial loans remain major concerns, lower tax rates and rising interest rates are likely to support Comerica's top line. Recently, following the Fed interest rate hike, the company has increased its lending rate to 5%.”

A number of other research firms have also recently commented on CMA. BMO Capital Markets reiterated a buy rating and set a $116.00 target price on shares of Comerica in a research report on Wednesday, March 7th. ValuEngine upgraded Comerica from a hold rating to a buy rating in a research report on Wednesday, March 7th. Bank of America lifted their target price on Comerica from $97.00 to $104.00 and gave the stock a neutral rating in a research report on Tuesday, March 13th. UBS Group assumed coverage on Comerica in a research report on Wednesday, March 21st. They issued a buy rating and a $114.00 price target on the stock. Finally, Wedbush boosted their price target on Comerica from $97.00 to $102.00 and gave the company a neutral rating in a research report on Monday, March 5th. Three equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and fourteen have issued a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $97.48.

CMA opened at $90.92 on Wednesday. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.02 and a current ratio of 1.02. Comerica has a one year low of $64.04 and a one year high of $102.66. The stock has a market cap of $15.63 billion, a PE ratio of 17.35, a PEG ratio of 0.71 and a beta of 1.36.

Comerica (NYSE:CMA) last posted its earnings results on Tuesday, April 17th. The financial services provider reported $1.54 EPS for the quarter, missing the Zacks’ consensus estimate of $1.56 by ($0.02). Comerica had a return on equity of 12.05% and a net margin of 24.37%. The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $811.59 million. During the same quarter last year, the firm posted $1.11 EPS. equities research analysts anticipate that Comerica will post 6.91 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Sunday, July 1st. Shareholders of record on Friday, June 15th will be issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 1.50%. The ex-dividend date is Thursday, June 14th. This is a positive change from Comerica’s previous quarterly dividend of $0.30. Comerica’s payout ratio is currently 28.75%.

Institutional investors and hedge funds have recently made changes to their positions in the business. Lazard Asset Management LLC boosted its holdings in Comerica by 3.8% in the 4th quarter. Lazard Asset Management LLC now owns 566,899 shares of the financial services provider’s stock valued at $49,211,000 after purchasing an additional 20,506 shares in the last quarter. LPL Financial LLC boosted its holdings in Comerica by 141.5% in the 4th quarter. LPL Financial LLC now owns 29,822 shares of the financial services provider’s stock valued at $2,589,000 after purchasing an additional 17,475 shares in the last quarter. Kavi Asset Management LP purchased a new stake in Comerica in the 4th quarter valued at approximately $5,079,000. MetLife Investment Advisors LLC purchased a new stake in Comerica in the 4th quarter valued at approximately $4,671,000. Finally, Teachers Advisors LLC boosted its holdings in Comerica by 4.6% in the 4th quarter. Teachers Advisors LLC now owns 2,004,578 shares of the financial services provider’s stock valued at $174,017,000 after purchasing an additional 87,509 shares in the last quarter. 81.83% of the stock is currently owned by institutional investors.

About Comerica

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through three segments: Business Bank, the Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, such as commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management, and loan syndication services to middle market businesses, multinational corporations, and governmental entities.

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