Comerica (NYSE:CMA) Earns Sell Rating from Analysts at UBS Group

UBS Group assumed coverage on shares of Comerica (NYSE:CMA) in a report published on Tuesday, Marketbeat Ratings reports. The firm issued a sell rating and a $64.00 price target on the financial services provider’s stock.

CMA has been the topic of several other research reports. Bank of America downgraded Comerica from a “neutral” rating to an “underperform” rating and cut their price target for the stock from $55.00 to $52.00 in a research note on Monday, October 7th. Wedbush raised Comerica from a “neutral” rating to an “outperform” rating and increased their target price for the stock from $52.00 to $75.00 in a research note on Tuesday, September 24th. The Goldman Sachs Group lifted their price target on Comerica from $71.00 to $85.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Piper Sandler increased their price objective on shares of Comerica from $64.00 to $72.00 and gave the company a “neutral” rating in a research report on Tuesday, December 3rd. Finally, Barclays lifted their target price on shares of Comerica from $56.00 to $66.00 and gave the stock an “underweight” rating in a report on Monday, October 21st. Three analysts have rated the stock with a sell rating, twelve have issued a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $67.68.

Comerica Stock Performance

Shares of Comerica stock opened at $60.01 on Tuesday. Comerica has a 12 month low of $45.32 and a 12 month high of $73.45. The firm has a market capitalization of $7.89 billion, a P/E ratio of 15.00 and a beta of 1.23. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.97. The business has a fifty day simple moving average of $66.62 and a two-hundred day simple moving average of $58.31.

Comerica (NYSE:CMA) last issued its quarterly earnings results on Friday, October 18th. The financial services provider reported $1.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.16. The company had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $806.49 million. Comerica had a net margin of 11.17% and a return on equity of 12.54%. During the same period last year, the company posted $1.84 EPS. On average, equities analysts forecast that Comerica will post 5.37 earnings per share for the current fiscal year.

Comerica announced that its board has approved a share buyback plan on Tuesday, November 5th that allows the company to buyback 10,000,000 outstanding shares. This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Comerica Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Investors of record on Friday, December 13th will be issued a $0.71 dividend. The ex-dividend date of this dividend is Friday, December 13th. This represents a $2.84 dividend on an annualized basis and a yield of 4.73%. Comerica’s dividend payout ratio is currently 71.00%.

Insider Activity

In related news, EVP James Harry Weber sold 6,500 shares of the firm’s stock in a transaction on Thursday, October 24th. The shares were sold at an average price of $63.23, for a total transaction of $410,995.00. Following the completion of the transaction, the executive vice president now directly owns 15,773 shares of the company’s stock, valued at approximately $997,326.79. This trade represents a 29.18 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Bruce Mitchell sold 7,564 shares of the business’s stock in a transaction on Tuesday, October 22nd. The stock was sold at an average price of $62.20, for a total transaction of $470,480.80. Following the completion of the sale, the executive vice president now owns 16,428 shares in the company, valued at approximately $1,021,821.60. The trade was a 31.53 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 15,456 shares of company stock worth $977,287 over the last ninety days. Corporate insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Comerica

Institutional investors and hedge funds have recently modified their holdings of the stock. Franklin Resources Inc. lifted its position in shares of Comerica by 9.3% during the third quarter. Franklin Resources Inc. now owns 14,690 shares of the financial services provider’s stock worth $901,000 after purchasing an additional 1,255 shares during the last quarter. Tidal Investments LLC grew its stake in Comerica by 96.2% during the 3rd quarter. Tidal Investments LLC now owns 32,138 shares of the financial services provider’s stock worth $1,925,000 after buying an additional 15,758 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new position in Comerica during the 3rd quarter valued at about $42,000. Sanctuary Advisors LLC raised its stake in Comerica by 17.0% in the third quarter. Sanctuary Advisors LLC now owns 10,095 shares of the financial services provider’s stock valued at $605,000 after buying an additional 1,467 shares during the last quarter. Finally, Teachers Retirement System of The State of Kentucky boosted its holdings in Comerica by 42.5% in the third quarter. Teachers Retirement System of The State of Kentucky now owns 46,184 shares of the financial services provider’s stock worth $2,767,000 after acquiring an additional 13,784 shares in the last quarter. Hedge funds and other institutional investors own 80.74% of the company’s stock.

About Comerica

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, payment solutions, card services, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities.