Comerica Incorporated (NYSE:CMA) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of Comerica Incorporated (NYSE:CMA) from a buy rating to a hold rating in a report published on Friday.
According to Zacks, “Comerica’s shares have outperformed the industry over the last six months. The company’s second-quarter 2017 results surpassed the Zacks Consensus Estimate. Results reflected increased revenues and improving credit quality along with lower expenses. Comerica’s future prospects look promising as it improvised the financial targets for revenue and efficiency initiatives (GEAR Up). Further, easing of margin pressure driven by the Fed rate hikes is encouraging. Notably, the expectation of lesser regulations will act as a tailwind for the company in the medium term. Though exposure to Michigan and California, two challenging economies, remains a headwind, Comerica’s active involvement in capital deployment activities is commendable.”
A number of other equities analysts have also commented on the company. Morgan Stanley reaffirmed an equal weight rating and issued a $75.00 price target (up from $71.00) on shares of Comerica in a report on Thursday, July 6th. BidaskClub lowered Comerica from a strong-buy rating to a buy rating in a report on Thursday, June 22nd. Keefe, Bruyette & Woods set a $73.00 price target on Comerica and gave the stock a buy rating in a report on Tuesday, April 18th. Barclays PLC reaffirmed an underweight rating and issued a $72.00 price target (up from $69.00) on shares of Comerica in a report on Saturday, April 22nd. Finally, Deutsche Bank AG raised their price target on Comerica to $74.00 and gave the stock a hold rating in a report on Wednesday, April 19th. Three research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eight have given a buy rating to the company. Comerica currently has an average rating of Hold and a consensus target price of $71.63.
Shares of Comerica (NYSE CMA) traded up 1.40% during trading on Friday, reaching $73.86. The company’s stock had a trading volume of 1,109,142 shares. Comerica has a 52-week low of $44.05 and a 52-week high of $75.72. The stock has a 50-day moving average of $73.30 and a 200-day moving average of $70.57. The stock has a market cap of $12.99 billion, a P/E ratio of 18.45 and a beta of 1.47.
Comerica (NYSE:CMA) last posted its quarterly earnings results on Tuesday, July 18th. The financial services provider reported $1.13 EPS for the quarter, topping the Zacks’ consensus estimate of $1.06 by $0.07. Comerica had a return on equity of 9.60% and a net margin of 23.22%. The firm had revenue of $776 million during the quarter, compared to analyst estimates of $777.08 million. During the same period last year, the company earned $0.58 earnings per share. The business’s revenue for the quarter was up 8.8% on a year-over-year basis. Analysts predict that Comerica will post $4.58 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Sunday, October 1st. Investors of record on Friday, September 15th will be paid a $0.30 dividend. The ex-dividend date of this dividend is Thursday, September 14th. This is a boost from Comerica’s previous quarterly dividend of $0.26. This represents a $1.20 annualized dividend and a dividend yield of 1.62%. Comerica’s dividend payout ratio (DPR) is presently 26.00%.
Comerica announced that its board has initiated a stock buyback program on Wednesday, June 28th that allows the company to repurchase $605.00 million in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 4.8% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.
Several hedge funds have recently bought and sold shares of CMA. Wealth Enhancement Advisory Services LLC purchased a new stake in Comerica during the first quarter valued at $774,000. Skylands Capital LLC purchased a new stake in Comerica during the first quarter valued at $2,342,000. Parametrica Management Ltd purchased a new stake in Comerica during the first quarter valued at $379,000. National Pension Service purchased a new stake in Comerica during the first quarter valued at $11,507,000. Finally, Gulf International Bank UK Ltd boosted its stake in Comerica by 1.4% in the first quarter. Gulf International Bank UK Ltd now owns 56,289 shares of the financial services provider’s stock valued at $3,860,000 after buying an additional 800 shares during the last quarter. 83.64% of the stock is currently owned by institutional investors.
Comerica Company Profile
Comerica Incorporated is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. The Company’s segments include the Business Bank, the Retail Bank, Wealth Management, Finance and Other. The Business Bank serves middle market businesses, multinational corporations and governmental entities by offering various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services.
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