Canadian Imperial Bank of Commerce (NYSE:CM) Stock Price Down 4.2% – Here’s What Happened

Shares of Canadian Imperial Bank of Commerce (NYSE:CM) (TSE:CM) traded down 4.2% during mid-day trading on Thursday . The company traded as low as $112.64 and last traded at $113.2330. 388,704 shares were traded during mid-day trading, a decline of 70% from the average session volume of 1,285,126 shares. The stock had previously closed at $118.20.

Trending Headlines about Canadian Imperial Bank of Commerce

Here are the key news stories impacting Canadian Imperial Bank of Commerce this week:

• Positive Sentiment: Adjusted third-quarter earnings per share rose 26% year over year to $2.73, marking CIBC’s ninth consecutive quarter of double-digit EPS growth. Adjusted net income increased to C$2.648 billion on revenue of C$8.368 billion, while return on equity reached 16.8%. CIBC Notches a Ninth Straight Quarter of Double-Digit Growth
• Positive Sentiment: Profit exceeded analyst expectations, supported by growth in domestic retail banking, capital markets and CIBC’s U.S. operations. Reported quarterly earnings reached C$2.41 billion, up from C$2.1 billion a year earlier. CIBC Beats Profit Forecast on Growth in Domestic Banking
• Positive Sentiment: CIBC declared a quarterly dividend of C$1.07 per share, payable October 28 to shareholders of record September 28. The dividend supports an annualized yield of approximately 3.7% and may appeal to income-focused investors.
• Neutral Sentiment: Analysts’ recent price targets remain above the current trading range, with targets of C$144, C$157 and C$167. However, these targets predate the latest earnings reaction and may not yet reflect investor concerns about capital and one-time costs.
• Negative Sentiment: The quarter included C$269 million in charges related to the announced sale of CIBC Caribbean Bank. The bank’s CET1 capital ratio also declined to 13.4% from 13.6%, partly because of the charge, a minority investment closing and share repurchases. Those factors offset the operating-profit beat and contributed to the weaker market response. CIBC Slides After Earnings as Sale Charge and Capital Ratio Dip Offset a Profit Beat

Analyst Ratings Changes

Several research firms have weighed in on CM. Barclays reissued an “overweight” rating on shares of Canadian Imperial Bank of Commerce in a research report on Friday, August 21st. Scotiabank restated an “outperform” rating on shares of Canadian Imperial Bank of Commerce in a research report on Tuesday, June 16th. Raymond James Financial reaffirmed a “market perform” rating on shares of Canadian Imperial Bank of Commerce in a research note on Tuesday, May 12th. Keefe, Bruyette & Woods started coverage on Canadian Imperial Bank of Commerce in a research report on Friday, August 21st. They set a “market perform” rating for the company. Finally, TD Securities reissued a “buy” rating on shares of Canadian Imperial Bank of Commerce in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $167.00.

Canadian Imperial Bank of Commerce Price Performance

The company’s 50 day simple moving average is $117.46 and its 200 day simple moving average is $109.00. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $104.48 billion, a PE ratio of 15.28, a PEG ratio of 1.20 and a beta of 1.01.

Canadian Imperial Bank of Commerce (NYSE:CM) (TSE:CM) last issued its quarterly earnings results on Thursday, August 27th. The bank reported $1.96 earnings per share for the quarter, topping analysts’ consensus estimates of $1.80 by $0.16. Canadian Imperial Bank of Commerce had a return on equity of 17.07% and a net margin of 16.09%.The company had revenue of $5.97 billion for the quarter, compared to analyst estimates of $5.74 billion. On average, equities analysts anticipate that Canadian Imperial Bank of Commerce will post 7.41 earnings per share for the current year.

Canadian Imperial Bank of Commerce Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Monday, September 28th will be paid a $1.07 dividend. This represents a $4.28 annualized dividend and a yield of 3.7%. The ex-dividend date is Monday, September 28th. Canadian Imperial Bank of Commerce’s dividend payout ratio is presently 42.58%.

Institutional Trading of Canadian Imperial Bank of Commerce

A number of hedge funds have recently added to or reduced their stakes in CM. Corient Private Wealth LP increased its stake in shares of Canadian Imperial Bank of Commerce by 2.0% during the 2nd quarter. Corient Private Wealth LP now owns 15,861 shares of the bank’s stock valued at $1,825,000 after acquiring an additional 307 shares during the last quarter. Amundi boosted its position in shares of Canadian Imperial Bank of Commerce by 5.4% in the second quarter. Amundi now owns 3,209,521 shares of the bank’s stock worth $369,177,000 after acquiring an additional 163,631 shares during the last quarter. Tanager Wealth Management LLP acquired a new stake in shares of Canadian Imperial Bank of Commerce in the second quarter worth approximately $264,000. Trans Canada Capital Inc. purchased a new stake in Canadian Imperial Bank of Commerce in the second quarter valued at approximately $7,623,000. Finally, Gainline Financial Partners LLC purchased a new stake in Canadian Imperial Bank of Commerce in the second quarter valued at approximately $460,000. 49.88% of the stock is owned by institutional investors and hedge funds.

About Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (NYSE: CM), commonly known as CIBC, is a major Canadian financial institution headquartered in Toronto. Formed in 1961 through the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada, CIBC is one of Canada’s largest banks and provides a broad range of banking and financial services to retail, small business, commercial and institutional clients.

CIBC’s activities span personal and business banking, wealth management, capital markets and corporate banking.