Comerica Incorporated (NYSE:CMA) to Issue $0.71 Quarterly Dividend

Comerica Incorporated (NYSE:CMA) announced a quarterly dividend on Tuesday, November 5th,RTT News reports. Investors of record on Friday, December 13th will be paid a dividend of 0.71 per share by the financial services provider on Wednesday, January 1st. This represents a $2.84 dividend on an annualized basis and a yield of 4.20%. The ex-dividend date of this dividend is Friday, December 13th.

Comerica has raised its dividend payment by an average of 1.5% per year over the last three years. Comerica has a payout ratio of 51.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect Comerica to earn $5.41 per share next year, which means the company should continue to be able to cover its $2.84 annual dividend with an expected future payout ratio of 52.5%.

Comerica Price Performance

Shares of CMA stock opened at $67.64 on Wednesday. The company’s 50-day simple moving average is $65.79 and its two-hundred day simple moving average is $57.73. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.97 and a quick ratio of 0.97. Comerica has a one year low of $45.32 and a one year high of $73.45. The company has a market capitalization of $8.90 billion, a P/E ratio of 16.91 and a beta of 1.23.

Comerica (NYSE:CMA) last released its quarterly earnings data 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 return on equity of 12.54% and a net margin of 11.17%. The company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $806.49 million. During the same period last year, the business posted $1.84 EPS. As a group, equities analysts anticipate that Comerica will post 5.37 EPS for the current year.

Insider Activity at Comerica

In other news, EVP Bruce Mitchell sold 7,564 shares of the company’s stock in a transaction 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 completion of the sale, the executive vice president now owns 16,428 shares of the company’s stock, valued at $1,021,821.60. This represents a 31.53 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Allysun C. Fleming sold 1,392 shares of the firm’s stock in a transaction dated 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 directly owns 8,730 shares in the company, 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. In the last three months, insiders have sold 15,456 shares of company stock valued at $977,287. 0.19% of the stock is owned by corporate insiders.

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

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on CMA. Truist Financial increased their price objective on Comerica from $66.00 to $70.00 and gave the company a “hold” rating in a report on Monday, October 21st. Piper Sandler increased their price target on Comerica from $64.00 to $72.00 and gave the company a “neutral” rating in a research note on Tuesday, December 3rd. Keefe, Bruyette & Woods boosted their target price on shares of Comerica from $72.00 to $82.00 and gave the stock an “outperform” rating in a research report on Wednesday, December 4th. Compass Point lifted their price target on Comerica from $64.00 to $80.00 and gave the stock a “buy” rating in a research report on Tuesday. Finally, The Goldman Sachs Group increased their price objective on Comerica from $71.00 to $85.00 and gave the company a “buy” rating in a report on Tuesday, November 26th. Two equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat, Comerica has an average rating of “Hold” and a consensus target price of $67.27.

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.