Comerica Incorporated Receives “Hold” Rating from Analysts

Comerica Incorporated (NYSE:CMA) has received a consensus rating of “Hold” from the nineteen research firms currently covering its stock, according to MarketBeat.com. Of these analysts, one has issued a sell recommendation, while fifteen advocate for holding the stock, and three recommend buying it. The average price target for Comerica shares over the next year stands at around $79.56.

Several recent analyses shed light on the stock’s performance. Notably, on October 10, 2023, Keefe, Bruyette & Woods reaffirmed a “market perform” rating but raised its price target from $73.00 to $93.00. Similarly, the Royal Bank of Canada increased its target price from $75.00 to $86.00, assigning an “outperform” rating. Meanwhile, Evercore ISI set a price target of $89.00, and UBS Group upgraded Comerica from a “hold” rating to a “buy” rating, establishing a new target of $106.00.

Stock Performance and Financial Overview

As of the latest trading session, Comerica shares opened at $90.98, reflecting a decline of 2.0%. The company currently holds a market capitalization of approximately $11.63 billion, with a price-to-earnings (P/E) ratio of 17.20. Over the past year, the stock has fluctuated between a low of $48.12 and a high of $99.41. The 50-day and 200-day simple moving averages are recorded at $89.09 and $78.21, respectively.

In a recent quarterly earnings report released on January 20, 2024, Comerica reported earnings of $1.46 per share, surpassing analysts’ expectations of $1.28 by $0.18. The firm generated revenue of $850 million for the quarter, slightly below the anticipated $851.32 million. Last year, the company reported $1.20 earnings per share for the same quarter. Analysts predict that Comerica will post earnings of $5.28 per share for the current fiscal year.

Insider Trading Activity and Institutional Investments

Recent insider trading activity has raised some eyebrows. On January 27, 2024, Executive Vice President Allysun C. Fleming sold 8,864 shares at an average price of $94.47, totaling approximately $837,382. Following this transaction, Fleming’s holdings in the company decreased by 64.94%. Another executive vice president, James Harry Weber, sold 8,798 shares on January 22, 2024, at an average price of $98.04, amounting to $862,555.92. This sale represented a 29.99% reduction in Weber’s ownership.

In total, insiders have sold 27,662 shares of Comerica stock valued at around $2.68 million in the last quarter. Currently, insiders hold approximately 1.10% of the company’s stock.

Institutional investors have also been active in modifying their stakes in Comerica. Versor Investments LP acquired a new position worth approximately $18.9 million in the fourth quarter. ABC Arbitrage SA purchased a stake valued at about $7.06 million, while NewEdge Wealth LLC increased its holdings by 2.3%, now owning 641,793 shares worth approximately $55.79 million. Ethic Inc. raised its stake by 10.7%, acquiring an additional 3,010 shares during the quarter.

Comerica is a diversified financial services company headquartered in Dallas, Texas. It operates primarily as Comerica Bank, providing a wide range of banking and financial solutions to individuals, professionals, and businesses. The company has a rich history dating back to its establishment in 1849 as the Detroit Savings Fund Institute, evolving into a regional banking leader over more than 170 years.