Zacks Investment Research lowered shares of Comerica (NYSE:CMA) from a buy rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Shares of Comerica have outperformed the industry over the past three months. Also, the company has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate for earnings in all the trailing four quarters. The company’s future prospects look promising as it has improvised the financial targets for revenues and efficiency initiatives. Also, the company's top line is likely to be supported by lower tax rates, expected further easing of regulations and rising interest rates. However, escalating expenses continues to deter bottom-line growth. Also, substantial exposure to commercial loans remains a concern.”
Several other equities research analysts have also recently weighed in on the company. Goldman Sachs Group cut Comerica from a conviction-buy rating to a buy rating in a research note on Monday, January 7th. DA Davidson decreased their price target on Comerica to $87.00 and set a neutral rating for the company in a research note on Thursday, January 17th. Barclays decreased their price target on Comerica from $102.00 to $90.00 and set an underweight rating for the company in a research note on Wednesday, January 2nd. BMO Capital Markets cut Comerica from an outperform rating to a market perform rating and set a $83.00 price target for the company. in a research note on Thursday, February 14th. Finally, Keefe, Bruyette & Woods cut Comerica from an outperform rating to a market perform rating in a research note on Wednesday, December 12th. Three analysts have rated the stock with a sell rating, fourteen have issued a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the stock. The stock presently has an average rating of Hold and a consensus target price of $94.95.
Shares of CMA opened at $80.80 on Tuesday. Comerica has a 12-month low of $63.69 and a 12-month high of $101.05. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.86. The stock has a market capitalization of $13.09 billion, a price-to-earnings ratio of 11.16, a PEG ratio of 0.66 and a beta of 1.45.
Comerica (NYSE:CMA) last issued its earnings results on Wednesday, January 16th. The financial services provider reported $1.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. The business had revenue of $864.00 million during the quarter, compared to analysts’ expectations of $863.43 million. Comerica had a return on equity of 15.84% and a net margin of 34.24%. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.28 EPS. As a group, research analysts forecast that Comerica will post 8.18 earnings per share for the current fiscal year.
Comerica announced that its Board of Directors has approved a stock repurchase plan on Tuesday, January 22nd that allows the company to buyback 15,000,000 outstanding shares. This buyback authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Monday, April 1st. Investors of record on Friday, March 15th will be given a dividend of $0.67 per share. This is a positive change from Comerica’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Thursday, March 14th. This represents a $2.68 annualized dividend and a dividend yield of 3.32%. Comerica’s dividend payout ratio is presently 37.02%.
In other Comerica news, insider Peter William Guilfoile sold 2,922 shares of the stock in a transaction that occurred on Tuesday, January 29th. The stock was sold at an average price of $82.26, for a total value of $240,363.72. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Megan D. Burkhart sold 7,443 shares of the stock in a transaction that occurred on Wednesday, February 27th. The stock was sold at an average price of $87.55, for a total value of $651,634.65. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 18,565 shares of company stock worth $1,603,348. 0.98% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in the business. Parallel Advisors LLC boosted its holdings in Comerica by 7.3% in the fourth quarter. Parallel Advisors LLC now owns 2,292 shares of the financial services provider’s stock worth $157,000 after acquiring an additional 155 shares in the last quarter. Simmons Bank boosted its holdings in Comerica by 1.3% in the fourth quarter. Simmons Bank now owns 13,283 shares of the financial services provider’s stock worth $913,000 after acquiring an additional 165 shares in the last quarter. Pier 88 Investment Partners LLC boosted its holdings in Comerica by 56.7% in the fourth quarter. Pier 88 Investment Partners LLC now owns 470 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 170 shares in the last quarter. Moody National Bank Trust Division boosted its holdings in Comerica by 0.9% in the fourth quarter. Moody National Bank Trust Division now owns 22,198 shares of the financial services provider’s stock worth $1,524,000 after acquiring an additional 198 shares in the last quarter. Finally, Daiwa Securities Group Inc. boosted its holdings in Comerica by 3.3% in the fourth quarter. Daiwa Securities Group Inc. now owns 6,321 shares of the financial services provider’s stock worth $434,000 after acquiring an additional 200 shares in the last quarter. Institutional investors and hedge funds own 83.42% of the company’s stock.
Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through three segments: Business Bank, Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services middle market businesses, multinational corporations, and governmental entities.
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