Comerica Incorporated (NYSE:CMA) Rating Lowered to Hold at Zacks Investment Research
Comerica Incorporated (NYSE:CMA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued 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 also recently issued reports on the stock. Morgan Stanley reaffirmed an “equal weight” rating and set a $75.00 price objective (up from $71.00) on shares of Comerica in a report on Thursday, July 6th. BidaskClub downgraded shares of 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 shares of Comerica and gave the stock a “buy” rating in a report on Tuesday, April 18th. Deutsche Bank AG boosted their price target on shares of Comerica to $74.00 and gave the stock a “hold” rating in a report on Wednesday, April 19th. Finally, Barclays PLC reissued 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. Three research analysts have rated the stock with a sell rating, eleven have given a hold rating and eight have issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $71.63.
Shares of Comerica (CMA) traded up 1.40% during mid-day trading on Friday, reaching $73.86. 1,109,142 shares of the company’s stock were exchanged. The company’s 50-day moving average price is $73.30 and its 200 day moving average price is $70.57. Comerica has a 52-week low of $44.05 and a 52-week high of $75.72. The company has a market cap of $12.99 billion, a PE ratio of 18.45 and a beta of 1.47.
Comerica (NYSE:CMA) last posted its quarterly earnings data on Tuesday, July 18th. The financial services provider reported $1.13 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.06 by $0.07. The firm had revenue of $776 million for the quarter, compared to the consensus estimate of $777.08 million. Comerica had a net margin of 23.22% and a return on equity of 9.60%. The business’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.58 EPS. On average, equities research analysts predict that Comerica will post $4.58 EPS for the current year.
Comerica announced that its Board of Directors has authorized a stock buyback plan on Wednesday, June 28th that authorizes the company to buyback $605.00 million in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 4.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.
Several large investors have recently made changes to their positions in CMA. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Comerica during the first quarter valued at $774,000. Skylands Capital LLC bought a new stake in shares of Comerica during the first quarter valued at $2,342,000. Parametrica Management Ltd bought a new stake in shares of Comerica during the first quarter valued at $379,000. National Pension Service bought a new stake in shares of Comerica during the first quarter valued at $11,507,000. Finally, Gulf International Bank UK Ltd boosted its stake in shares of 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 in the last quarter. Hedge funds and other institutional investors own 83.64% 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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