Comerica Inc. (CMA) Stock Rating Lowered by Zacks Investment Research
Comerica Inc. (NYSE:CMA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
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 equities research analysts have also recently issued reports on the company. 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 note 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 note on Friday, September 16th. 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. JPMorgan Chase & Co. lowered their price objective on Comerica from $47.00 to $43.00 and set a “neutral” rating on the stock in a research note on Thursday, July 7th. 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 note on Tuesday, September 6th. Two analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and nine have issued a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $44.67.
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Shares of Comerica (NYSE:CMA) opened at 48.98 on Tuesday. The firm has a market capitalization of $8.52 billion, a P/E ratio of 21.27 and a beta of 1.36. Comerica has a 1-year low of $30.48 and a 1-year high of $49.62. The stock has a 50 day moving average of $46.86 and a 200-day moving average of $43.87.
Comerica (NYSE:CMA) last announced its quarterly earnings data on Tuesday, July 19th. The financial services provider reported $0.58 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.69 by $0.11. Comerica had a net margin of 14.69% and a return on equity of 6.03%. On average, equities analysts expect that Comerica will post $2.41 earnings per share for the current year.
The company also recently disclosed 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. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $0.92 dividend on an annualized basis and a yield of 1.88%. 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 on Thursday, August 25th. The stock was sold at an average price of $45.92, for a total value of $105,707.84. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.60% of the stock is owned by company insiders.
A number of institutional investors have recently bought and sold shares of CMA. Global X Management Co. LLC increased its position in 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 worth $118,000 after buying an additional 1,611 shares during the period. Pacer Advisors Inc. increased its position in Comerica by 9.0% in the second quarter. Pacer Advisors Inc. now owns 2,966 shares of the financial services provider’s stock worth $122,000 after buying an additional 244 shares during the period. Tredje AP fonden increased its position in Comerica by 733.9% in the second quarter. Tredje AP fonden now owns 4,920 shares of the financial services provider’s stock worth $202,000 after buying an additional 4,330 shares during the period. American National Registered Investment Advisor Inc. purchased a new position in Comerica during the second quarter worth about $206,000. Finally, Dillon & Associates Inc. purchased a new position in Comerica during the second quarter worth about $211,000. Institutional investors and hedge funds own 84.62% of the company’s stock.
Comerica Company Profile
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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