Comerica Inc. (CMA) Rating Increased 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 report released 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 analysts also recently commented on the company. Wedbush assumed coverage on Comerica in a research report on Thursday, October 6th. They issued a “neutral” rating and a $49.00 price target on the stock. Bank of America Corp. cut Comerica from a “neutral” rating to an “underperform” rating and boosted their price objective for the company from $30.48 to $36.00 in a research report on Wednesday, June 29th. Goldman Sachs Group Inc. upgraded Comerica from a “neutral” rating to a “buy” rating and set a $52.00 price objective on the stock in a research report on Friday, September 16th. Wells Fargo & Co. upgraded Comerica from an “underperform” rating to a “market perform” rating in a research report on Friday, July 8th. They noted that the move was a valuation call. Finally, Credit Agricole SA boosted their price objective on Comerica from $50.00 to $53.00 and gave the company an “outperform” rating in a research report on Tuesday, September 6th. Two 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 company. The company has an average rating of “Hold” and a consensus price target of $45.04.
Comerica (NYSE:CMA) opened at 48.40 on Thursday. The firm has a market capitalization of $8.42 billion, a price-to-earnings ratio of 21.02 and a beta of 1.36. Comerica has a one year low of $30.48 and a one year high of $49.75. The stock’s 50 day moving average price is $47.25 and its 200-day moving average price is $44.18.
Comerica (NYSE:CMA) last issued its quarterly earnings results on Tuesday, July 19th. The financial services provider reported $0.58 EPS 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%. On average, equities research analysts anticipate that Comerica will post $2.41 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Saturday, October 1st. Shareholders of record on Thursday, September 15th were issued a $0.23 dividend. This is an increase from Comerica’s previous quarterly dividend of $0.22. This represents a $0.92 annualized dividend and a dividend yield of 1.90%. The ex-dividend date of this dividend was Tuesday, September 13th. Comerica’s dividend payout ratio is 38.82%.
In other Comerica news, insider Paul R. Obermeyer sold 2,302 shares of the stock in a transaction dated Thursday, August 25th. The stock was sold at an average price of $45.92, for a total value of $105,707.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.60% of the stock is owned by company insiders.
Several large investors have recently made changes to their positions in the company. A.R.T. Advisors LLC acquired a new stake in shares of Comerica during the first quarter valued at about $2,792,000. National Planning Corp acquired a new stake in shares of Comerica during the first quarter valued at about $239,000. Zurich Insurance Group Ltd FI acquired a new stake in shares of Comerica during the first quarter valued at about $960,000. Adage Capital Partners GP L.L.C. increased its stake in shares of 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 valued at $63,557,000 after buying an additional 1,367,896 shares during the period. Finally, Geode Capital Management LLC increased its stake in shares of 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 valued at $53,764,000 after buying an additional 6,752 shares during the period. Institutional investors 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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