Comerica Inc. (CMA) Downgraded by Zacks Investment Research to Hold
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 analysts also recently weighed in on the stock. Bank of America Corp. downgraded shares of Comerica from a neutral rating to an underperform rating and lifted their target price for the company from $30.48 to $36.00 in a report on Wednesday, June 29th. Goldman Sachs Group Inc. upgraded shares of Comerica from a neutral rating to a buy rating and set a $52.00 price objective for the company in a research note on Friday, September 16th. Wells Fargo & Co. upgraded shares of Comerica from an underperform rating to a market perform rating in a research note on Friday, July 8th. They noted that the move was a valuation call. JPMorgan Chase & Co. reduced their price objective on shares of Comerica from $47.00 to $43.00 and set a neutral rating for the company in a research note on Thursday, July 7th. Finally, Credit Agricole SA raised their price objective on shares of Comerica from $50.00 to $53.00 and gave the company an outperform rating in a research note on Tuesday, September 6th. Two equities research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and nine have given a buy rating to the stock. The company currently has an average rating of Hold and an average target price of $44.54.
Comerica (NYSE:CMA) traded up 3.34% during mid-day trading on Tuesday, hitting $49.47. 1,097,957 shares of the stock traded hands. The firm’s 50-day moving average is $46.56 and its 200-day moving average is $43.72. Comerica has a 12-month low of $30.48 and a 12-month high of $49.61. The company has a market cap of $8.60 billion, a price-to-earnings ratio of 21.48 and a beta of 1.36.
Comerica (NYSE:CMA) last issued its 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 net margin of 14.69% and a return on equity of 6.03%. Equities research analysts expect that Comerica will post $2.43 EPS for the current year.
The firm 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 is a positive change from Comerica’s previous quarterly dividend of $0.22. The ex-dividend date was Tuesday, September 13th. This represents a $0.92 annualized dividend and a dividend yield of 1.92%. Comerica’s dividend payout ratio (DPR) is 38.82%.
In other news, insider Paul R. Obermeyer sold 2,302 shares of the firm’s stock in a transaction dated Thursday, August 25th. The shares were sold at an average price of $45.92, for a total transaction of $105,707.84. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 1.60% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. RS Investment Management Co. LLC raised its stake in Comerica by 13.5% in the second quarter. RS Investment Management Co. LLC now owns 881,365 shares of the financial services provider’s stock worth $36,251,000 after buying an additional 104,950 shares in the last quarter. Washington Trust Bank raised its stake in Comerica by 5.4% in the second quarter. Washington Trust Bank now owns 55,097 shares of the financial services provider’s stock worth $2,266,000 after buying an additional 2,798 shares in the last quarter. Adage Capital Partners GP L.L.C. raised its stake in Comerica by 440.7% in the first quarter. Adage Capital Partners GP L.L.C. now owns 1,678,296 shares of the financial services provider’s stock worth $63,557,000 after buying an additional 1,367,896 shares in the last quarter. Geode Capital Management LLC raised its stake in Comerica by 0.5% in the first quarter. Geode Capital Management LLC now owns 1,422,637 shares of the financial services provider’s stock worth $53,764,000 after buying an additional 6,752 shares in the last quarter. Finally, Aperio Group LLC raised its stake in Comerica by 37.3% in the first quarter. Aperio Group LLC now owns 151,816 shares of the financial services provider’s stock worth $5,749,000 after buying an additional 41,249 shares in the last quarter. Institutional investors own 84.62% 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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