Comerica (NYSE:CMA) Shares Gap Down Following Weak Earnings

Shares of Comerica Incorporated (NYSE:CMA) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $66.38, but opened at $63.46. Comerica shares last traded at $63.35, with a volume of 349,073 shares trading hands.

The financial services provider reported $1.20 earnings per share for the quarter, missing the consensus estimate of $1.25 by ($0.05). Comerica had a return on equity of 12.54% and a net margin of 11.17%. During the same period last year, the firm posted $1.46 EPS.

Comerica Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 1st. Investors of record on Friday, December 13th were given a $0.71 dividend. This represents a $2.84 annualized dividend and a yield of 4.53%. The ex-dividend date was Friday, December 13th. Comerica’s dividend payout ratio (DPR) is presently 71.00%.

Comerica declared that its board has initiated a stock repurchase program on Tuesday, November 5th that authorizes the company to buyback 10,000,000 shares. This buyback authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on CMA shares. Piper Sandler boosted their price objective on Comerica from $64.00 to $72.00 and gave the stock a “neutral” rating in a research note on Tuesday, December 3rd. UBS Group started coverage on shares of Comerica in a research note on Tuesday, December 17th. They set a “sell” rating and a $64.00 price target on the stock. Keefe, Bruyette & Woods upped their price objective on Comerica from $72.00 to $82.00 and gave the stock an “outperform” rating in a report on Wednesday, December 4th. The Goldman Sachs Group cut Comerica from a “buy” rating to a “neutral” rating and lowered their target price for the company from $85.00 to $71.00 in a research note on Tuesday, January 7th. Finally, Stephens raised their target price on shares of Comerica from $64.00 to $70.00 and gave the company an “overweight” rating in a research note on Monday, October 21st. Three analysts have rated the stock with a sell rating, twelve have assigned a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, Comerica presently has an average rating of “Hold” and an average price target of $67.71.

Insider Buying and Selling

In other news, EVP Allysun C. Fleming sold 1,392 shares of Comerica stock in a transaction dated Thursday, November 7th. The shares were 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 directly owns 8,730 shares in the company, valued at $600,885.90. This trade represents a 13.75 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP James Harry Weber sold 6,500 shares of the business’s stock in a transaction dated Thursday, October 24th. The stock was sold at an average price of $63.23, for a total transaction of $410,995.00. Following the sale, the executive vice president now directly owns 15,773 shares of the company’s stock, valued at approximately $997,326.79. The trade was a 29.18 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.19% of the stock is owned by insiders.

Institutional Investors Weigh In On Comerica

A number of institutional investors and hedge funds have recently bought and sold shares of CMA. KBC Group NV increased its position in shares of Comerica by 45.9% during the 4th quarter. KBC Group NV now owns 5,772 shares of the financial services provider’s stock valued at $357,000 after purchasing an additional 1,817 shares during the last quarter. Blue Trust Inc. boosted its stake in Comerica by 5.2% in the fourth quarter. Blue Trust Inc. now owns 4,040 shares of the financial services provider’s stock valued at $242,000 after acquiring an additional 200 shares during the last quarter. Gradient Investments LLC purchased a new position in Comerica in the fourth quarter valued at about $311,000. Impact Partnership Wealth LLC bought a new position in shares of Comerica during the 4th quarter valued at approximately $370,000. Finally, SG Americas Securities LLC purchased a new stake in shares of Comerica during the 4th quarter worth approximately $2,950,000. 80.74% of the stock is owned by hedge funds and other institutional investors.

Comerica Price Performance

The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.97. The business’s fifty day moving average is $65.98 and its 200 day moving average is $60.76. The company has a market cap of $8.25 billion, a P/E ratio of 15.72 and a beta of 1.26.

Comerica Company Profile

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.