Comerica (NYSE:CMA) to Buyback 5,000,000 Outstanding Stock
Comerica (NYSE:CMA) declared that its board has authorized a stock buyback program, which authorizes the company to repurchase 5,000,000 outstanding shares on Tuesday, July 25th, EventVestor reports. This repurchase authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.
Shares of Comerica (NYSE CMA) traded down 1.47% during trading on Wednesday, reaching $73.04. The company’s stock had a trading volume of 335,031 shares. Comerica has a one year low of $43.74 and a one year high of $75.72. The company has a 50-day moving average price of $72.70 and a 200-day moving average price of $70.39. The stock has a market cap of $12.85 billion, a price-to-earnings ratio of 18.26 and a beta of 1.48.
Comerica (NYSE:CMA) last issued its earnings results on Tuesday, July 18th. The financial services provider reported $1.13 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.06 by $0.07. Comerica had a return on equity of 9.25% and a net margin of 23.22%. The business had revenue of $776 million during the quarter, compared to analysts’ expectations of $777.08 million. During the same period in the prior year, the business earned $0.58 EPS. The business’s revenue for the quarter was up 8.8% compared to the same quarter last year. On average, equities research analysts forecast that Comerica will post $4.58 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Sunday, October 1st. Shareholders of record on Friday, September 15th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.62%. This is a boost from Comerica’s previous quarterly dividend of $0.26. The ex-dividend date is Thursday, September 14th. Comerica’s dividend payout ratio is currently 26.00%.
Several research analysts recently weighed in on the stock. BidaskClub cut shares of Comerica from a “buy” rating to a “hold” rating in a research report on Tuesday. Jefferies Group LLC reiterated a “buy” rating and set a $81.00 price target on shares of Comerica in a research report on Thursday, June 8th. Zacks Investment Research upgraded shares of Comerica from a “hold” rating to a “strong-buy” rating and set a $78.00 price target on the stock in a research report on Friday, April 21st. Stephens reiterated a “buy” rating and set a $80.00 price target on shares of Comerica in a research report on Tuesday, July 18th. Finally, Keefe, Bruyette & Woods set a $73.00 price target on shares of Comerica and gave the company a “buy” rating in a research report on Tuesday, April 18th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating, eight have given a buy rating and one has given a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $71.13.
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In other Comerica news, CEO Ralph W. Babb, Jr. sold 83,600 shares of the company’s stock in a transaction on Monday, May 1st. The stock was sold at an average price of $70.94, for a total value of $5,930,584.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 1.10% of the stock is currently owned by corporate insiders.
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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