DA Davidson Issues Pessimistic Outlook for Comerica Earnings

Comerica Incorporated (NYSE:CMA) – Equities researchers at DA Davidson cut their FY2024 earnings per share estimates for shares of Comerica in a research note issued to investors on Thursday, December 19th. DA Davidson analyst P. Winter now expects that the financial services provider will post earnings of $5.34 per share for the year, down from their previous estimate of $5.41. DA Davidson has a “Neutral” rating and a $68.00 price objective on the stock. The consensus estimate for Comerica’s current full-year earnings is $5.37 per share. DA Davidson also issued estimates for Comerica’s FY2025 earnings at $5.52 EPS.

A number of other equities analysts also recently weighed in on the stock. Truist Financial boosted their target price on shares of Comerica from $66.00 to $70.00 and gave the stock a “hold” rating in a report on Monday, October 21st. The Goldman Sachs Group boosted their price target on Comerica from $71.00 to $85.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Barclays lifted their target price on Comerica from $56.00 to $66.00 and gave the stock an “underweight” rating in a research note on Monday, October 21st. Robert W. Baird increased their price target on Comerica from $75.00 to $80.00 and gave the company an “outperform” rating in a research note on Monday, November 18th. Finally, Evercore ISI lifted their price objective on shares of Comerica from $64.00 to $69.00 and gave the stock an “in-line” rating in a research report on Wednesday, October 30th. Three analysts have rated the stock with a sell rating, twelve have given a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat, Comerica has a consensus rating of “Hold” and an average target price of $67.68.

Comerica Price Performance

Shares of NYSE CMA opened at $61.86 on Monday. 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 business has a 50-day moving average of $66.61 and a 200-day moving average of $58.53. The stock has a market capitalization of $8.14 billion, a price-to-earnings ratio of 15.47 and a beta of 1.23. Comerica has a fifty-two week low of $45.32 and a fifty-two week high of $73.45.

Comerica (NYSE:CMA) last announced its earnings results on Friday, October 18th. The financial services provider reported $1.33 EPS for the quarter, topping the consensus estimate of $1.17 by $0.16. Comerica had a net margin of 11.17% and a return on equity of 12.54%. The business had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $806.49 million. During the same quarter in the prior year, the company posted $1.84 earnings per share.

Comerica Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be issued a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a dividend yield of 4.59%. The ex-dividend date of this dividend is Friday, December 13th. Comerica’s dividend payout ratio (DPR) is currently 71.00%.

Comerica announced that its board has authorized a stock buyback program on Tuesday, November 5th that permits the company to buyback 10,000,000 outstanding shares. This buyback authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Bruce Mitchell sold 7,564 shares of the stock in a transaction that occurred on Tuesday, October 22nd. The shares were sold at an average price of $62.20, for a total transaction of $470,480.80. Following the sale, the executive vice president now owns 16,428 shares in the company, valued at approximately $1,021,821.60. This trade represents a 31.53 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Allysun C. Fleming sold 1,392 shares of the business’s stock in a transaction that occurred on Thursday, November 7th. The shares were sold at an average price of $68.83, for a total transaction of $95,811.36. Following the transaction, the executive vice president now owns 8,730 shares of the company’s stock, valued at approximately $600,885.90. This represents a 13.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 15,456 shares of company stock worth $977,287. Company insiders own 0.19% of the company’s stock.

Institutional Trading of Comerica

Several institutional investors and hedge funds have recently modified their holdings of the business. State Street Corp boosted its stake in shares of Comerica by 2.0% in the 3rd quarter. State Street Corp now owns 4,977,670 shares of the financial services provider’s stock valued at $301,745,000 after purchasing an additional 96,084 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Comerica by 5.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 4,306,042 shares of the financial services provider’s stock valued at $257,975,000 after purchasing an additional 226,285 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in Comerica by 51.3% in the second quarter. Dimensional Fund Advisors LP now owns 4,045,656 shares of the financial services provider’s stock valued at $206,468,000 after buying an additional 1,370,886 shares in the last quarter. Vaughan Nelson Investment Management L.P. grew its stake in shares of Comerica by 31.3% during the third quarter. Vaughan Nelson Investment Management L.P. now owns 2,408,820 shares of the financial services provider’s stock worth $144,312,000 after buying an additional 574,516 shares during the last quarter. Finally, Azora Capital LP increased its holdings in shares of Comerica by 7.8% during the third quarter. Azora Capital LP now owns 2,230,369 shares of the financial services provider’s stock worth $133,621,000 after buying an additional 161,181 shares in the last quarter. 80.74% of the stock is currently owned by institutional investors.

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.