Comerica Incorporated (CMA) Stock Rating Lowered by Zacks Investment Research
Comerica Incorporated (NYSE:CMA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Shares of Comerica have underperformed the industry year to date. Yet, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. 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. However, its exposure to Michigan and California, two challenging economies, remains a headwind. Also, significant exposure to commercial loans keeps us apprehensive. Further, a stretched valuation indicates that the stock has limited upside potential.”
Several other equities analysts have also issued reports on CMA. Morgan Stanley lifted their target price on Comerica from $70.00 to $71.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 6th. Jefferies Group LLC reiterated a “buy” rating and issued a $81.00 target price on shares of Comerica in a research note on Thursday, June 8th. FBR & Co upgraded Comerica from a “market perform” rating to an “outperform” rating and set a $79.00 target price on the stock in a research note on Friday, June 9th. Keefe, Bruyette & Woods reiterated a “buy” rating and issued a $78.00 target price on shares of Comerica in a research note on Friday, June 16th. Finally, BidaskClub lowered Comerica from a “strong-buy” rating to a “buy” rating in a research note on Thursday, June 22nd. Four analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $76.19.
Shares of Comerica (NYSE:CMA) opened at 72.53 on Tuesday. The company’s 50-day moving average is $69.91 and its 200 day moving average is $70.59. Comerica has a 12 month low of $45.14 and a 12 month high of $75.72. The stock has a market capitalization of $12.76 billion, a P/E ratio of 18.11 and a beta of 1.49.
Comerica (NYSE:CMA) last released its quarterly earnings data on Tuesday, July 18th. The financial services provider reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.07. The firm had revenue of $776.00 million during the quarter, compared to the consensus estimate of $777.08 million. Comerica had a return on equity of 9.60% and a net margin of 23.22%. The firm’s quarterly revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.58 earnings per share. Equities research analysts predict that Comerica will post $4.60 earnings per share for the current year.
Comerica announced that its Board of Directors has approved a share buyback plan on Wednesday, June 28th that permits the company to repurchase $605.00 million in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 4.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
In related news, insider Paul R. Obermeyer sold 20,321 shares of the company’s stock in a transaction that occurred on Wednesday, August 23rd. The stock was sold at an average price of $70.24, for a total value of $1,427,347.04. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Judith S. Love sold 21,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 22nd. The shares were sold at an average price of $69.74, for a total value of $1,464,540.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 44,249 shares of company stock worth $3,095,383. 1.10% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Comerica by 6.7% in the second quarter. Vanguard Group Inc. now owns 18,161,488 shares of the financial services provider’s stock valued at $1,330,147,000 after buying an additional 1,142,275 shares during the last quarter. BlackRock Inc. boosted its position in Comerica by 0.5% in the second quarter. BlackRock Inc. now owns 11,319,900 shares of the financial services provider’s stock valued at $829,069,000 after buying an additional 51,426 shares during the last quarter. State Street Corp boosted its position in Comerica by 11.3% in the second quarter. State Street Corp now owns 9,990,021 shares of the financial services provider’s stock valued at $731,672,000 after buying an additional 1,010,965 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Comerica by 22.3% in the second quarter. JPMorgan Chase & Co. now owns 5,040,167 shares of the financial services provider’s stock valued at $369,142,000 after buying an additional 919,333 shares during the last quarter. Finally, Wellington Management Group LLP boosted its position in Comerica by 1.5% in the first quarter. Wellington Management Group LLP now owns 4,928,411 shares of the financial services provider’s stock valued at $337,991,000 after buying an additional 71,159 shares during the last quarter. Hedge funds and other institutional investors own 82.45% of the company’s stock.
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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