Zacks Investment Research cut shares of Comerica (NYSE:CMA) from a buy rating to a hold rating in a report published on Tuesday, December 19th.
According to Zacks, “Shares of Comerica have outperformed the industry year to date. 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. The company’s future prospects look promising as it improvised the financial targets for revenues and efficiency initiatives (GEAR Up). Also, its steady capital deployment activities continue to enhance investors’ confidence. Moreover, following the recent Fed interest rate hike, the company raised its prime lending rate to 4.50% from 4.25%., which is likely to further support Comerica's easing margin pressure. However, a stretched valuation indicates that the stock has limited upside potential. Also, significant exposure to commercial loans keeps us apprehensive.”
Several other analysts also recently weighed in on the company. Keefe, Bruyette & Woods restated a buy rating and issued a $79.00 price target on shares of Comerica in a research note on Friday, September 22nd. Instinet restated a neutral rating and issued a $74.00 price target (up previously from $71.00) on shares of Comerica in a research note on Saturday, September 30th. SunTrust Banks restated a hold rating and issued a $83.00 price target on shares of Comerica in a research note on Wednesday, November 29th. Piper Jaffray Companies upgraded Comerica to a buy rating and set a $98.00 target price on the stock in a research note on Friday, December 8th. Finally, Morgan Stanley reiterated an equal weight rating and set a $90.00 target price on shares of Comerica in a research note on Wednesday, December 13th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of Hold and an average target price of $87.07.
Comerica (CMA) traded up $0.52 on Tuesday, reaching $93.04. The company’s stock had a trading volume of 1,605,788 shares, compared to its average volume of 1,327,927. Comerica has a fifty-two week low of $64.04 and a fifty-two week high of $93.54. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.00 and a quick ratio of 1.00. The company has a market cap of $16,090.62, a price-to-earnings ratio of 21.05, a price-to-earnings-growth ratio of 1.67 and a beta of 1.51.
Comerica (NYSE:CMA) last posted its earnings results on Tuesday, October 17th. The financial services provider reported $1.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Comerica had a return on equity of 10.35% and a net margin of 24.87%. The firm had revenue of $821.00 million for the quarter, compared to the consensus estimate of $812.83 million. During the same quarter in the prior year, the business earned $0.84 EPS. analysts anticipate that Comerica will post 4.85 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, January 1st. Stockholders of record on Friday, December 15th were given a dividend of $0.30 per share. The ex-dividend date was Thursday, December 14th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.29%. Comerica’s payout ratio is 27.15%.
In related news, EVP Christine M. Moore sold 3,200 shares of Comerica stock in a transaction dated Friday, November 10th. The stock was sold at an average price of $75.07, for a total value of $240,224.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Michael T. Ritchie sold 4,596 shares of Comerica stock in a transaction dated Friday, November 10th. The stock was sold at an average price of $75.08, for a total value of $345,067.68. The disclosure for this sale can be found here. Company insiders own 1.10% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in CMA. Vanguard Group Inc. lifted its stake in Comerica by 6.7% in the second quarter. Vanguard Group Inc. now owns 18,161,488 shares of the financial services provider’s stock worth $1,330,147,000 after purchasing an additional 1,142,275 shares during the last quarter. BlackRock Inc. lifted its stake in Comerica by 0.5% in the second quarter. BlackRock Inc. now owns 11,319,900 shares of the financial services provider’s stock worth $829,069,000 after purchasing an additional 51,426 shares during the last quarter. State Street Corp lifted its stake in Comerica by 11.3% in the second quarter. State Street Corp now owns 9,990,021 shares of the financial services provider’s stock worth $731,672,000 after purchasing an additional 1,010,965 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in Comerica by 33.4% in the third quarter. JPMorgan Chase & Co. now owns 6,721,807 shares of the financial services provider’s stock worth $507,632,000 after purchasing an additional 1,681,640 shares during the last quarter. Finally, TIAA CREF Investment Management LLC lifted its stake in Comerica by 1.6% in the second quarter. TIAA CREF Investment Management LLC now owns 2,204,216 shares of the financial services provider’s stock worth $161,437,000 after purchasing an additional 34,144 shares during the last quarter. Institutional investors own 81.95% of the company’s stock.
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Comerica Company Profile
Comerica Incorporated is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. The Company’s segments include the Business Bank, the Retail Bank, Wealth Management, Finance and Other. The Business Bank serves middle market businesses, multinational corporations and governmental entities by offering 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.
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