Zacks Investment Research lowered shares of Comerica Incorporated (NYSE:CMA) from a buy rating to a hold rating in a report published on Friday.

According to Zacks, “Comerica’s shares have outperformed the industry over the last one year. 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. Comerica’s active involvement in capital deployment activities is commendable. However, exposure to Michigan and California, two challenging economies, remains a headwind.”

Other equities research analysts have also recently issued reports about the company. Jefferies Group LLC reiterated a buy rating and issued a $81.00 target price on shares of Comerica in a research note on Monday, May 15th. BidaskClub cut Comerica from a strong-buy rating to a buy rating in a research note on Thursday, June 22nd. Morgan Stanley reiterated an equal weight rating and issued a $75.00 target price (up from $71.00) on shares of Comerica in a research note on Thursday, July 6th. Barclays PLC reiterated an underweight rating and issued a $76.00 target price (up from $72.00) on shares of Comerica in a research note on Wednesday, July 12th. Finally, Instinet reiterated a neutral rating and issued a $71.00 target price (up from $68.00) on shares of Comerica in a research note on Wednesday, July 12th. 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 stock. The company has a consensus rating of Hold and an average price target of $71.44.

Shares of Comerica (NYSE CMA) opened at 72.31 on Friday. Comerica has a 52-week low of $43.74 and a 52-week high of $75.72. The stock has a market cap of $12.72 billion, a P/E ratio of 18.07 and a beta of 1.48. The company has a 50-day moving average of $73.31 and a 200 day moving average of $70.56.

Comerica (NYSE:CMA) last posted its earnings results on Tuesday, July 18th. The financial services provider reported $1.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.06 by $0.07. The company had revenue of $776 million for the quarter, compared to analysts’ expectations of $777.08 million. Comerica had a return on equity of 9.25% and a net margin of 23.22%. The firm’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same period last year, the business posted $0.58 earnings per share. Equities research analysts forecast that Comerica will post $4.58 EPS for the current fiscal year.

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The company also recently announced a quarterly dividend, which will be paid on Sunday, October 1st. Investors of record on Friday, September 15th will be issued a dividend of $0.30 per share. This is a positive change from Comerica’s previous quarterly dividend of $0.26. This represents a $1.20 dividend on an annualized basis and a yield of 1.66%. The ex-dividend date is Thursday, September 14th. Comerica’s payout ratio is presently 26.00%.

Comerica declared that its board has initiated a share repurchase program on Wednesday, June 28th that permits the company to buyback $605.00 million in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 4.8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in Comerica by 6.2% in the first quarter. Vanguard Group Inc. now owns 17,019,213 shares of the financial services provider’s stock worth $1,167,178,000 after buying an additional 997,004 shares during the period. BlackRock Inc. boosted its stake in shares of Comerica by 3,094.6% in the first quarter. BlackRock Inc. now owns 11,268,474 shares of the financial services provider’s stock valued at $772,796,000 after buying an additional 10,915,741 shares during the last quarter. Wellington Management Group LLP boosted its stake in shares of Comerica by 1.5% in the first quarter. Wellington Management Group LLP now owns 4,928,411 shares of the financial services provider’s stock valued at $337,991,000 after buying an additional 71,159 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Comerica by 28.1% in the first quarter. JPMorgan Chase & Co. now owns 4,120,834 shares of the financial services provider’s stock valued at $282,610,000 after buying an additional 905,127 shares during the last quarter. Finally, King Luther Capital Management Corp boosted its stake in shares of Comerica by 1.8% in the first quarter. King Luther Capital Management Corp now owns 2,958,144 shares of the financial services provider’s stock valued at $202,870,000 after buying an additional 51,008 shares during the last quarter. 83.64% of the stock is currently owned by hedge funds and other institutional investors.

About Comerica

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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Analyst Recommendations for Comerica (NYSE:CMA)

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