Comerica Inc. (NYSE:CMA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Comerica’s estimates have been stable lately ahead of its third-quarter 2016 earnings release. The company’s growth prospects look promising given its new revenue and efficiency initiatives (GEAR Up). The initiatives are expected to deliver additional annual pre-tax income of around $230 million by year-end 2018, improve efficiency ratio to low-60% by the end of 2017, and a sub-60% efficiency ratio by year-end 2018 (without any increase in interest rates). Further, the initial actions will help in achieving a double-digit return on equity. We expect continuous geographic diversification beyond the company’s traditional and slow-growth Midwest markets to propel growth in the upcoming quarters. However, several issues keep us apprehensive including, regulatory overhangs, exposure in the stressed energy sector and margin pressure amid slow rise in interest rates.”
Several other research firms also recently weighed in on CMA. Bank of America Corp. downgraded shares of Comerica from a “neutral” rating to an “underperform” rating and raised their price target for the stock from $30.48 to $36.00 in a research note on Wednesday, June 29th. Goldman Sachs Group Inc. raised shares of Comerica from a “neutral” rating to a “buy” rating and set a $52.00 price target on the stock in a research note on Friday, September 16th. FBR & Co downgraded shares of Comerica from an “outperform” rating to a “market perform” rating and set a $50.00 price target on the stock. in a research note on Tuesday. Credit Agricole SA raised their price objective on shares of Comerica from $50.00 to $53.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 6th. Finally, Barclays PLC restated a “sell” rating on shares of Comerica in a research report on Saturday, July 9th. Two equities research analysts have rated the stock with a sell rating, eighteen have given a hold rating and eight have issued a buy rating to the stock. Comerica presently has a consensus rating of “Hold” and an average target price of $45.04.
Comerica (NYSE:CMA) traded down 2.12% during midday trading on Thursday, reaching $47.58. 733,748 shares of the company’s stock traded hands. Comerica has a 1-year low of $30.48 and a 1-year high of $49.75. The firm’s 50-day moving average is $47.12 and its 200-day moving average is $44.08. The company has a market capitalization of $8.27 billion, a price-to-earnings ratio of 20.66 and a beta of 1.36.
Comerica (NYSE:CMA) last posted its quarterly earnings results on Tuesday, July 19th. The financial services provider reported $0.58 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.69 by $0.11. Comerica had a return on equity of 6.03% and a net margin of 14.69%. Analysts forecast that Comerica will post $2.41 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Saturday, October 1st. Stockholders of record on Thursday, September 15th were given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 1.89%. The ex-dividend date of this dividend was Tuesday, September 13th. This is an increase from Comerica’s previous quarterly dividend of $0.22. Comerica’s payout ratio is currently 38.82%.
In other news, insider Paul R. Obermeyer sold 2,302 shares of the business’s stock in a transaction that occurred on Thursday, August 25th. The shares were sold at an average price of $45.92, for a total transaction of $105,707.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 1.60% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Global X Management Co. LLC increased its stake in shares of Comerica by 128.8% in the second quarter. Global X Management Co. LLC now owns 2,862 shares of the financial services provider’s stock valued at $118,000 after buying an additional 1,611 shares in the last quarter. Pacer Advisors Inc. boosted its position in shares of Comerica by 9.0% in the second quarter. Pacer Advisors Inc. now owns 2,966 shares of the financial services provider’s stock worth $122,000 after buying an additional 244 shares during the last quarter. Tredje AP fonden boosted its position in shares of Comerica by 733.9% in the second quarter. Tredje AP fonden now owns 4,920 shares of the financial services provider’s stock worth $202,000 after buying an additional 4,330 shares during the last quarter. American National Registered Investment Advisor Inc. acquired a new position in shares of Comerica during the second quarter worth approximately $206,000. Finally, Dillon & Associates Inc. acquired a new position in shares of Comerica during the second quarter worth approximately $211,000. Institutional investors and hedge funds own 84.59% of the company’s stock.
Comerica Company Profile
Comerica Incorporated (Comerica) is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. Comerica has its operations in three business segments: the Business Bank, the Retail Bank and Wealth Management. In addition to the three business segments, it also operates in the Finance segment.
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