Zacks Investment Research Lowers Comerica Incorporated (CMA) to Hold
Zacks Investment Research lowered shares of Comerica Incorporated (NYSE:CMA) from a buy rating to a hold rating in a report issued on Wednesday morning.
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.”
Other equities research analysts have also recently issued reports about the stock. BidaskClub cut shares of Comerica from a hold rating to a sell rating in a research report on Monday, August 14th. Instinet reissued a neutral rating and set a $71.00 price target (up from $68.00) on shares of Comerica in a research report on Wednesday, July 12th. Barclays PLC reissued an underweight rating and set a $76.00 price target (up from $72.00) on shares of Comerica in a research report on Wednesday, July 12th. Morgan Stanley reissued an equal weight rating and set a $75.00 price target (up from $71.00) on shares of Comerica in a research report on Thursday, July 6th. Finally, FBR & Co set a $79.00 price target on shares of Comerica and gave the stock a buy rating in a research report on Tuesday, July 18th. Three investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and seven have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $77.60.
Shares of Comerica (NYSE CMA) opened at $79.75 on Wednesday. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $13.82 billion, a P/E ratio of 17.93, a PEG ratio of 1.82 and a beta of 1.50.
Comerica (NYSE:CMA) last issued its quarterly earnings results on Tuesday, October 17th. The financial services provider reported $1.26 EPS for the quarter, topping the consensus estimate of $1.23 by $0.03. Comerica had a net margin of 24.87% and a return on equity of 10.35%. The firm had revenue of $821.00 million for the quarter, compared to analysts’ expectations of $812.83 million. During the same period in the previous year, the firm posted $0.84 EPS. equities analysts anticipate that Comerica will post 4.86 EPS for the current year.
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Comerica declared that its Board of Directors has initiated a share buyback program on Tuesday, July 25th that allows the company to buyback 5,000,000 outstanding shares. This buyback authorization allows the financial services provider to buy shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.
In other Comerica news, insider Paul R. Obermeyer sold 20,321 shares of the stock in a transaction that occurred on Wednesday, August 23rd. The shares were sold at an average price of $70.24, for a total transaction of $1,427,347.04. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Peter William Guilfoile sold 2,928 shares of the stock in a transaction that occurred on Monday, August 28th. The stock was sold at an average price of $69.50, for a total transaction of $203,496.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 44,249 shares of company stock worth $3,095,383. Company insiders own 1.10% of the company’s stock.
Large investors have recently made changes to their positions in the business. DnB Asset Management AS grew its position in shares of Comerica by 1.4% during the 2nd quarter. DnB Asset Management AS now owns 81,311 shares of the financial services provider’s stock worth $5,955,000 after purchasing an additional 1,100 shares in the last quarter. Chicago Equity Partners LLC lifted its holdings in shares of Comerica by 25.0% during the 2nd quarter. Chicago Equity Partners LLC now owns 36,540 shares of the financial services provider’s stock worth $2,676,000 after acquiring an additional 7,310 shares during the period. BlackRock Inc. lifted its holdings in shares of Comerica by 0.5% during the 2nd quarter. BlackRock Inc. now owns 11,319,900 shares of the financial services provider’s stock worth $829,069,000 after acquiring an additional 51,426 shares during the period. Pacad Investment Ltd. bought a new stake in shares of Comerica during the 2nd quarter worth approximately $1,147,000. Finally, Delta Lloyd Asset Management N.V. bought a new stake in shares of Comerica during the 2nd quarter worth approximately $1,876,000. Hedge funds and other institutional investors own 83.44% of the company’s stock.
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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