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 note issued to investors 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.”
CMA has been the topic of a number of other research reports. Credit Agricole SA boosted their target price on Comerica from $50.00 to $53.00 and gave the stock an “outperform” rating in a research note on Tuesday, September 6th. Bank of America Corp. downgraded Comerica from a “neutral” rating to an “underperform” rating and boosted their target price for the stock from $30.48 to $36.00 in a research note on Wednesday, June 29th. Barclays PLC boosted their target price on Comerica from $42.00 to $45.00 and gave the stock an “underweight” rating in a research note on Thursday, September 15th. Wedbush initiated coverage on Comerica in a research note on Thursday, October 6th. They issued a “neutral” rating and a $49.00 target price on the stock. Finally, Wells Fargo & Co. upgraded 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. 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 company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $45.04.
Comerica (NYSE:CMA) opened at 48.40 on Thursday. Comerica has a 1-year low of $30.48 and a 1-year high of $49.75. The firm’s 50-day moving average price is $47.25 and its 200-day moving average price is $44.18. The company has a market cap of $8.42 billion, a price-to-earnings ratio of 21.02 and a beta of 1.36.
Comerica (NYSE:CMA) last issued its quarterly earnings data on Tuesday, July 19th. The financial services provider reported $0.58 EPS for the quarter, missing analysts’ consensus estimates of $0.69 by $0.11. Comerica had a return on equity of 6.03% and a net margin of 14.69%. Equities research analysts forecast that Comerica will post $2.41 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Saturday, October 1st. Stockholders of record on Thursday, September 15th were issued a dividend of $0.23 per share. This is a positive change from Comerica’s previous quarterly dividend of $0.22. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.90%. The ex-dividend date was Tuesday, September 13th. Comerica’s dividend payout ratio is currently 38.82%.
In other news, insider Paul R. Obermeyer sold 2,302 shares of the 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 can be accessed through this link. Insiders own 1.60% of the company’s stock.
Several hedge funds have recently bought and sold shares of the company. Glenmede Trust Co. NA raised its stake in Comerica by 2,289.0% in the first quarter. Glenmede Trust Co. NA now owns 17,392 shares of the financial services provider’s stock worth $658,000 after buying an additional 16,664 shares in the last quarter. Ngam Advisors L.P. raised its stake in Comerica by 2.5% in the first quarter. Ngam Advisors L.P. now owns 33,567 shares of the financial services provider’s stock worth $1,271,000 after buying an additional 819 shares in the last quarter. Prudential Financial Inc. raised its stake in Comerica by 45.3% in the first quarter. Prudential Financial Inc. now owns 404,099 shares of the financial services provider’s stock worth $15,303,000 after buying an additional 126,000 shares in the last quarter. BlackRock Institutional Trust Company N.A. raised its stake in Comerica by 0.8% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,530,902 shares of the financial services provider’s stock worth $171,585,000 after buying an additional 35,025 shares in the last quarter. Finally, Advisor Partners LLC purchased a new stake in Comerica during the first quarter worth $236,000. 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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