Comerica Inc. (CMA) Raised to “Hold” at Zacks Investment Research
Comerica Inc. (NYSE:CMA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research 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.”
A number of other analysts have also weighed in on the stock. Keefe, Bruyette & Woods reiterated a “market perform” rating on shares of Comerica in a report on Wednesday. Deutsche Bank AG increased their target price on shares of Comerica from $45.00 to $52.00 and gave the stock a “hold” rating in a report on Tuesday. FBR & Co lowered shares of Comerica from an “outperform” rating to a “market perform” rating and set a $50.00 target price for the company. in a report on Tuesday. Wedbush began coverage on shares of Comerica in a report on Thursday, October 6th. They set a “neutral” rating and a $49.00 target price for the company. Finally, Goldman Sachs Group Inc. upgraded shares of Comerica from a “neutral” rating to a “buy” rating and set a $52.00 target price for the company in a report on Friday, September 16th. Two investment analysts have rated the stock with a sell rating, eighteen have given a hold rating and eight have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $45.04.
Comerica (NYSE:CMA) traded down 2.12% during trading on Thursday, reaching $47.58. The company’s stock had a trading volume of 733,748 shares. The firm has a market cap of $8.27 billion, a PE ratio of 20.66 and a beta of 1.36. The company has a 50-day moving average of $47.12 and a 200 day moving average of $44.08. Comerica has a one year low of $30.48 and a one year high of $49.75.
Comerica (NYSE:CMA) last posted its quarterly earnings results on Tuesday, July 19th. The financial services provider reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.69 by $0.11. Comerica had a net margin of 14.69% and a return on equity of 6.03%. Analysts expect that Comerica will post $2.41 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Saturday, October 1st. Stockholders of record on Thursday, September 15th were paid 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 a boost from Comerica’s previous quarterly dividend of $0.22. Comerica’s dividend payout ratio (DPR) is currently 38.82%.
In other news, insider Paul R. Obermeyer sold 2,302 shares of Comerica stock in a transaction 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 legal filing with the SEC, which is accessible through this link. Insiders own 1.60% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Global X Management Co. LLC boosted its position 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 valued at $122,000 after buying an additional 244 shares in 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 valued at $202,000 after buying an additional 4,330 shares in the last quarter. American National Registered Investment Advisor Inc. acquired a new position in shares of Comerica during the second quarter valued at $206,000. Finally, Dillon & Associates Inc. acquired a new position in shares of Comerica during the second quarter valued at $211,000. Institutional investors and hedge funds own 84.59% of the company’s stock.
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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