Zacks Investment Research upgraded shares of Comerica (NYSE:CMA) from a hold rating to a buy rating in a research report report published on Tuesday morning. They currently have $92.00 target price 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.”
Other equities analysts also recently issued reports about the stock. Argus initiated coverage on shares of Comerica in a report on Thursday, January 3rd. They set a buy rating and a $88.00 price target on the stock. Piper Jaffray Companies set a $106.00 price target on shares of Comerica and gave the company a buy rating in a report on Tuesday, December 4th. Stephens reiterated a buy rating and set a $85.00 price target on shares of Comerica in a report on Wednesday, December 19th. Goldman Sachs Group downgraded shares of Comerica from a conviction-buy rating to a buy rating in a report on Monday, January 7th. Finally, KeyCorp downgraded shares of Comerica from an outperform rating to a market perform rating in a report on Wednesday, December 12th. 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 assigned a strong buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $94.95.
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 analysts’ consensus estimates of $1.87 by $0.08. Comerica had a net margin of 34.24% and a return on equity of 15.84%. The firm had revenue of $864.00 million for the quarter, compared to the consensus estimate of $863.43 million. During the same period in the previous year, the firm posted $1.28 EPS. The business’s quarterly revenue was up 4.1% on a year-over-year basis. On average, equities analysts forecast that Comerica will post 8.19 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 1st. Shareholders of record on Friday, March 15th will be given a $0.67 dividend. This represents a $2.68 annualized dividend and a yield of 3.26%. This is a boost from Comerica’s previous quarterly dividend of $0.60. The ex-dividend date is Thursday, March 14th. Comerica’s payout ratio is 33.15%.
Comerica announced that its board has initiated a stock repurchase plan on Tuesday, January 22nd that authorizes the company to repurchase 15,000,000 shares. This repurchase authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
In other news, insider Peter William Guilfoile sold 2,922 shares of the company’s stock in a transaction that occurred on Tuesday, January 29th. The shares were sold at an average price of $82.26, for a total value of $240,363.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul R. Obermeyer sold 8,200 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $86.75, for a total transaction of $711,350.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 18,565 shares of company stock valued at $1,603,348. 0.83% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently made changes to their positions in CMA. Allianz Asset Management GmbH lifted its position in shares of Comerica by 936.0% in the 3rd quarter. Allianz Asset Management GmbH now owns 1,591,118 shares of the financial services provider’s stock worth $143,519,000 after purchasing an additional 1,437,542 shares during the period. Norges Bank purchased a new stake in shares of Comerica in the 4th quarter worth approximately $89,893,000. Two Sigma Advisers LP lifted its position in shares of Comerica by 133.4% in the 4th quarter. Two Sigma Advisers LP now owns 1,848,949 shares of the financial services provider’s stock worth $127,004,000 after purchasing an additional 1,056,658 shares during the period. Bank of New York Mellon Corp lifted its position in shares of Comerica by 47.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 2,727,000 shares of the financial services provider’s stock worth $245,975,000 after purchasing an additional 881,990 shares during the period. Finally, Vanguard Group Inc lifted its position in shares of Comerica by 3.5% in the 3rd quarter. Vanguard Group Inc now owns 18,993,812 shares of the financial services provider’s stock worth $1,713,241,000 after purchasing an additional 634,716 shares during the period. 83.20% of the stock is owned by hedge funds and other institutional investors.
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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