Comerica (NYSE:CMA) Shares Gap Up on Earnings Beat

Comerica Incorporated (NYSE:CMA)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $49.82, but opened at $51.55. Comerica shares last traded at $50.91, with a volume of 330,007 shares changing hands.

The financial services provider reported $1.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.13 by $0.16. Comerica had a net margin of 16.71% and a return on equity of 19.41%. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $807.57 million. During the same quarter last year, the firm posted $2.39 EPS.

Comerica Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, April 1st. Shareholders of record on Friday, March 15th were issued a dividend of $0.71 per share. The ex-dividend date was Thursday, March 14th. This represents a $2.84 annualized dividend and a yield of 5.51%. Comerica’s dividend payout ratio (DPR) is currently 44.10%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on CMA. Barclays lifted their price target on shares of Comerica from $49.00 to $59.00 and gave the stock an “underweight” rating in a report on Tuesday, January 2nd. Piper Sandler lifted their price target on shares of Comerica from $53.00 to $54.00 and gave the stock a “neutral” rating in a report on Friday. Truist Financial lifted their price target on shares of Comerica from $60.00 to $62.00 and gave the stock a “buy” rating in a report on Monday, April 1st. Keefe, Bruyette & Woods lowered their price target on shares of Comerica from $60.00 to $58.00 and set a “market perform” rating for the company in a report on Monday, January 22nd. Finally, DA Davidson reiterated a “neutral” rating and set a $56.00 price target on shares of Comerica in a report on Wednesday, March 6th. Three analysts have rated the stock with a sell rating, fifteen have issued a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat, Comerica has a consensus rating of “Hold” and an average price target of $58.02.

Insider Activity at Comerica

In related news, EVP Wendy Bridges sold 3,034 shares of the company’s stock in a transaction on Monday, February 12th. The shares were sold at an average price of $52.74, for a total value of $160,013.16. Following the sale, the executive vice president now directly owns 17,460 shares of the company’s stock, valued at $920,840.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, EVP Cassandra M. Mckinney sold 1,616 shares of the stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $54.64, for a total value of $88,298.24. Following the sale, the executive vice president now owns 8,314 shares of the company’s stock, valued at approximately $454,276.96. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Wendy Bridges sold 3,034 shares of the stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $52.74, for a total transaction of $160,013.16. Following the completion of the sale, the executive vice president now directly owns 17,460 shares in the company, valued at approximately $920,840.40. The disclosure for this sale can be found here. 0.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Comerica

A number of large investors have recently modified their holdings of the company. Spire Wealth Management lifted its stake in Comerica by 95.9% during the fourth quarter. Spire Wealth Management now owns 480 shares of the financial services provider’s stock valued at $25,000 after buying an additional 235 shares in the last quarter. Quarry LP bought a new position in Comerica during the fourth quarter valued at approximately $26,000. Chilton Capital Management LLC bought a new position in Comerica during the first quarter valued at approximately $28,000. Fortitude Family Office LLC bought a new position in Comerica during the fourth quarter valued at approximately $36,000. Finally, Turtle Creek Wealth Advisors LLC bought a new position in Comerica during the fourth quarter valued at approximately $36,000. Institutional investors and hedge funds own 80.74% of the company’s stock.

Comerica Stock Performance

The stock has a market cap of $6.83 billion, a P/E ratio of 8.01 and a beta of 1.27. The firm’s 50-day moving average is $51.38 and its two-hundred day moving average is $49.23. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.03.

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.