Comerica Inc. (CMA) Lifted 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 research report issued to clients and 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.”
A number of other analysts also recently issued reports on CMA. Wedbush initiated coverage on shares of Comerica in a research report on Thursday, October 6th. They set a “neutral” rating and a $49.00 target price for the company. Bank of America Corp. downgraded shares of Comerica from a “neutral” rating to an “underperform” rating and increased their target price for the stock from $30.48 to $36.00 in a research report on Wednesday, June 29th. Goldman Sachs Group Inc. raised shares of Comerica from a “neutral” rating to a “buy” rating and set a $52.00 target price for the company in a research report on Friday, September 16th. Wells Fargo & Co. raised shares of 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 increased their target price on shares of Comerica from $50.00 to $53.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 6th. Two research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and eight have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $45.04.
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Shares of Comerica (NYSE:CMA) traded down 2.10% on Thursday, reaching $47.59. 753,349 shares of the company were exchanged. The company has a 50-day moving average price of $47.12 and a 200 day moving average price of $44.08. Comerica has a 1-year low of $30.48 and a 1-year high of $49.75. The stock has a market capitalization of $8.28 billion, a PE ratio of 20.66 and a beta of 1.36.
Comerica (NYSE:CMA) last announced its quarterly earnings data on Tuesday, July 19th. The financial services provider reported $0.58 earnings per share 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, analysts forecast that Comerica will post $2.41 EPS for the current fiscal year.
The firm also recently declared 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 represents a $0.92 dividend on an annualized basis and a dividend yield of 1.89%. This is a positive change from Comerica’s previous quarterly dividend of $0.22. The ex-dividend date was Tuesday, September 13th. Comerica’s dividend payout ratio (DPR) is 38.82%.
In other news, insider Paul R. Obermeyer sold 2,302 shares of the firm’s stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $45.92, for a total transaction of $105,707.84. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 1.60% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of CMA. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Comerica during the second quarter worth approximately $58,616,000. Adage Capital Partners GP L.L.C. raised its position in 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 worth $63,557,000 after buying an additional 1,367,896 shares during the last quarter. Teachers Advisors Inc. raised its position in Comerica by 70.1% in the second quarter. Teachers Advisors Inc. now owns 1,649,833 shares of the financial services provider’s stock worth $67,858,000 after buying an additional 679,830 shares during the last quarter. Emerald Acquisition Ltd. purchased a new position in Comerica during the second quarter worth about $27,375,000. Finally, Bank of New York Mellon Corp raised its position in Comerica by 39.7% in the second quarter. Bank of New York Mellon Corp now owns 2,278,685 shares of the financial services provider’s stock worth $93,722,000 after buying an additional 647,477 shares during the last quarter. 84.59% of the stock is currently owned by institutional investors.
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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