Zacks Investment Research upgraded shares of Comerica (NYSE:CMA) from a hold rating to a buy rating in a research report sent to investors on Tuesday. The firm currently has $92.00 price target on the financial services provider’s stock.
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 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. Nevertheless, Comerica's steady capital deployment activities continue to enhance shareholders value.”
Several other analysts have also commented on CMA. B. Riley lowered shares of Comerica from a buy rating to a neutral rating and lowered their price objective for the stock from $107.00 to $84.00 in a report on Monday, December 10th. ValuEngine upgraded shares of Comerica from a strong sell rating to a sell rating in a report on Wednesday, January 2nd. Nomura restated a neutral rating and issued a $86.00 price objective (down from $91.00) on shares of Comerica in a report on Tuesday, November 13th. Macquarie lowered shares of Comerica from a neutral rating to an underperform rating in a report on Tuesday, November 27th. Finally, Piper Jaffray Companies set a $106.00 price objective on shares of Comerica and gave the stock a buy rating in a report on Tuesday, December 4th. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock has an average rating of Hold and a consensus price target of $94.95.
Comerica stock opened at $82.16 on Tuesday. 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 cap of $13.11 billion, a PE ratio of 11.35, a PEG ratio of 0.51 and a beta of 1.45. Comerica has a 1-year low of $63.69 and a 1-year high of $101.05.
Comerica (NYSE:CMA) last posted its earnings results on Wednesday, January 16th. The financial services provider reported $1.95 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.87 by $0.08. The company had revenue of $864.00 million during the quarter, compared to analyst estimates of $863.43 million. Comerica had a net margin of 34.24% and a return on equity of 15.84%. Comerica’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.28 earnings per share. Sell-side analysts predict that Comerica will post 8.19 earnings per share for the current year.
The company also recently declared 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. The ex-dividend date is Thursday, March 14th. This represents a $2.68 annualized dividend and a dividend yield of 3.26%. This is an increase from Comerica’s previous quarterly dividend of $0.60. Comerica’s dividend payout ratio (DPR) is 33.15%.
Comerica announced that its Board of Directors has authorized a stock buyback plan on Tuesday, January 22nd that permits the company to buyback 15,000,000 shares. This buyback authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its shares are undervalued.
In related news, EVP Megan D. Burkhart sold 7,443 shares of the firm’s stock in a transaction that occurred on Wednesday, February 27th. The shares were sold at an average price of $87.55, for a total transaction of $651,634.65. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Peter William Guilfoile sold 2,922 shares of Comerica stock in a transaction that occurred on Tuesday, January 29th. The stock was sold at an average price of $82.26, for a total transaction of $240,363.72. The disclosure for this sale can be found here. Insiders have sold 18,565 shares of company stock valued at $1,603,348 in the last three months. 0.83% of the stock is owned by insiders.
Large investors have recently bought and sold shares of the business. Highwater Wealth Management LLC bought a new stake in Comerica in the 4th quarter worth approximately $32,000. Oppenheimer Asset Management Inc. purchased a new position in shares of Comerica during the 4th quarter worth $25,000. Arcadia Investment Management Corp MI purchased a new position in shares of Comerica during the 4th quarter worth $25,000. Claybrook Capital LLC purchased a new position in shares of Comerica during the 4th quarter worth $29,000. Finally, Pier 88 Investment Partners LLC boosted its stake in shares of Comerica by 56.7% during the 4th 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 during the last quarter. 83.20% of the stock is owned by institutional investors and hedge funds.
Comerica Company Profile
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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