Comerica (NYSE:CMA) Sets New 1-Year High – Still a Buy?

Comerica Incorporated (NYSE:CMA) shares reached a new 52-week high during trading on Wednesday . The company traded as high as $71.63 and last traded at $71.36, with a volume of 109887 shares changing hands. The stock had previously closed at $70.00.

Wall Street Analyst Weigh In

CMA has been the topic of a number of research reports. Wells Fargo & Company upped their price target on Comerica from $43.00 to $51.00 and gave the stock an “underweight” rating in a research note on Monday, October 21st. Evercore ISI increased their target price on Comerica from $64.00 to $69.00 and gave the company an “in-line” rating in a report on Wednesday, October 30th. Morgan Stanley increased their target price on Comerica from $63.00 to $67.00 and gave the company an “equal weight” rating in a report on Monday, October 21st. Royal Bank of Canada dropped their target price on Comerica from $58.00 to $56.00 and set an “outperform” rating on the stock in a report on Monday, July 22nd. Finally, Wedbush raised Comerica from a “neutral” rating to an “outperform” rating and increased their target price for the company from $52.00 to $75.00 in a report on Tuesday, September 24th. Three research analysts have rated the stock with a sell rating, twelve have issued a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $62.81.

Comerica Stock Performance

The company has a debt-to-equity ratio of 0.97, a current ratio of 0.97 and a quick ratio of 0.97. The stock has a market cap of $9.22 billion, a price-to-earnings ratio of 17.52 and a beta of 1.22. The stock’s 50-day moving average is $61.61 and its 200 day moving average is $55.51.

Comerica (NYSE:CMA) last posted its quarterly earnings results on Friday, October 18th. The financial services provider reported $1.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.16. Comerica had a net margin of 11.17% and a return on equity of 12.54%. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $806.49 million. During the same period last year, the firm earned $1.84 EPS. As a group, analysts predict that Comerica Incorporated will post 5.39 earnings per share for the current fiscal year.

Comerica Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be paid a $0.71 dividend. The ex-dividend date is Friday, December 13th. This represents a $2.84 annualized dividend and a yield of 4.05%. Comerica’s payout ratio is currently 71.00%.

Comerica announced that its Board of Directors has initiated a stock buyback plan on Tuesday, November 5th that authorizes the company to buyback 10,000,000 shares. This buyback authorization authorizes the financial services provider to purchase shares of its stock through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Activity

In other Comerica news, EVP Bruce Mitchell sold 7,564 shares of the business’s stock in a transaction on Tuesday, October 22nd. The shares were sold at an average price of $62.20, for a total value of $470,480.80. Following the transaction, the executive vice president now owns 16,428 shares in the company, valued at $1,021,821.60. The trade was a 31.53 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Allysun C. Fleming sold 1,392 shares of the business’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $68.83, for a total transaction of $95,811.36. Following the completion of the transaction, the executive vice president now owns 8,730 shares in the company, valued at $600,885.90. This represents a 13.75 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 18,001 shares of company stock valued at $1,123,650 in the last ninety days. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Comerica

Large investors have recently modified their holdings of the stock. V Square Quantitative Management LLC bought a new position in shares of Comerica during the third quarter worth about $36,000. Family Firm Inc. acquired a new position in shares of Comerica during the second quarter valued at approximately $37,000. UMB Bank n.a. increased its stake in shares of Comerica by 39.3% during the second quarter. UMB Bank n.a. now owns 737 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 208 shares during the period. Versant Capital Management Inc increased its stake in shares of Comerica by 2,723.3% during the second quarter. Versant Capital Management Inc now owns 847 shares of the financial services provider’s stock valued at $43,000 after acquiring an additional 817 shares during the period. Finally, Abich Financial Wealth Management LLC increased its stake in shares of Comerica by 50.2% during the first quarter. Abich Financial Wealth Management LLC now owns 898 shares of the financial services provider’s stock valued at $49,000 after acquiring an additional 300 shares during the period. Institutional investors own 80.74% of the company’s stock.

About Comerica

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, payment solutions, card services, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities.