Comerica Incorporated (CMA) Downgraded 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 research note issued to investors on Wednesday.
According to Zacks, “Shares of Comerica have outperformed the industry year to date. This is backed by the company's impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Further, Comerica’s third-quarter 2017 adjusted earnings surpassed the Zacks Consensus Estimate. Easing margin pressure and higher fee income supported revenues. Prudent cost management was also reflected. However, higher provisions and a fall in loans balance remained major headwinds. Though significant exposure to commercial loans keeps us apprehensive, the company’s future prospects look promising as it improvised the financial targets for revenues and efficiency initiatives (GEAR Up). Notably, a stretched valuation indicates that the stock has limited upside potential.”
Several other brokerages also recently commented on CMA. Nomura upped their target price on Comerica from $74.00 to $86.00 and gave the company a “neutral” rating in a report on Monday, October 23rd. Robert W. Baird reissued a “hold” rating and issued a $74.00 price objective on shares of Comerica in a research note on Friday, October 20th. Citigroup Inc. reissued a “sell” rating and issued a $69.00 price objective (up from $65.00) on shares of Comerica in a research note on Monday, October 9th. Instinet reissued a “neutral” rating and issued a $74.00 price objective (up from $71.00) on shares of Comerica in a research note on Saturday, September 30th. Finally, SunTrust Banks, Inc. reissued a “hold” rating and issued a $80.00 price objective on shares of Comerica in a research note on Wednesday, October 4th. Three investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $77.60.
Comerica (NYSE:CMA) last announced its earnings results on Tuesday, October 17th. The financial services provider reported $1.26 EPS for the quarter, beating the consensus estimate of $1.23 by $0.03. Comerica had a return on equity of 10.35% and a net margin of 24.87%. The business had revenue of $821.00 million during the quarter, compared to the consensus estimate of $812.83 million. During the same period in the prior year, the business posted $0.84 earnings per share.
Comerica declared that its Board of Directors has approved a share buyback plan on Tuesday, July 25th that authorizes the company to buyback 5,000,000 outstanding shares. This buyback authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.
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In other Comerica news, insider Peter William Guilfoile sold 2,928 shares of the firm’s stock in a transaction that occurred on Monday, August 28th. The stock was sold at an average price of $69.50, for a total value of $203,496.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Paul R. Obermeyer sold 20,321 shares of the firm’s stock in a transaction that occurred on Wednesday, August 23rd. The shares were sold at an average price of $70.24, for a total value of $1,427,347.04. The disclosure for this sale can be found here. In the last three months, insiders have sold 44,249 shares of company stock worth $3,095,383. 1.10% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in Comerica by 6.7% in the 2nd 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. grew its holdings in Comerica by 0.5% in the 2nd 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 grew its holdings in Comerica by 11.3% in the 2nd 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. grew its holdings in Comerica by 22.3% in the 2nd 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, TIAA CREF Investment Management LLC grew its holdings in Comerica by 1.6% in the 2nd quarter. TIAA CREF Investment Management LLC now owns 2,204,216 shares of the financial services provider’s stock valued at $161,437,000 after buying an additional 34,144 shares during the last quarter. 83.44% of the stock is currently owned by hedge funds and other institutional investors.
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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