Canadian Imperial Bank of Commerce (NYSE:CM) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Unusual volume spike: Trading volume jumped 375% to 5,829,142 shares and the stock traded down about 3.2% to $95.21, signaling heightened market activity.
• Earnings beat and analyst upgrades: CIBC reported Q EPS of $1.99 vs. $1.74 consensus and revenue of $6.16B (+15.3% YoY), and recent upgrades leave a MarketBeat consensus of Moderate Buy with a $107.50 price target.
• Attractive dividend: The bank declared a quarterly dividend of $1.07 ($4.28 annualized) for a 4.5% yield, with an ex-dividend date of March 27 and a payout ratio around 44.6%.

Shares of Canadian Imperial Bank of Commerce (NYSE:CM - Get Free Report) TSE: CM saw an uptick in trading volume on Thursday . 5,829,142 shares changed hands during trading, an increase of 375% from the previous session's volume of 1,226,625 shares.The stock last traded at $95.2050 and had previously closed at $97.39.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CM. Zacks Research raised Canadian Imperial Bank of Commerce from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, March 4th. Barclays upgraded Canadian Imperial Bank of Commerce from an "underweight" rating to an "overweight" rating in a research note on Thursday, February 19th. Finally, Weiss Ratings upgraded shares of Canadian Imperial Bank of Commerce from a "buy (b+)" rating to a "buy (a-)" rating in a report on Tuesday, March 10th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Canadian Imperial Bank of Commerce presently has a consensus rating of "Moderate Buy" and a consensus price target of $107.50.

Canadian Imperial Bank of Commerce Trading Down 3.2%

The company's 50 day simple moving average is $96.46 and its two-hundred day simple moving average is $89.28. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $87.17 billion, a price-to-earnings ratio of 13.75, a P/E/G ratio of 1.00 and a beta of 1.00.

Canadian Imperial Bank of Commerce (NYSE:CM - Get Free Report) TSE: CM last issued its quarterly earnings results on Thursday, February 26th. The bank reported $1.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.74 by $0.25. Canadian Imperial Bank of Commerce had a return on equity of 15.69% and a net margin of 15.15%.The business had revenue of $6.16 billion for the quarter, compared to the consensus estimate of $5.53 billion. During the same period in the prior year, the firm posted $2.20 earnings per share. The business's quarterly revenue was up 15.3% on a year-over-year basis. As a group, research analysts anticipate that Canadian Imperial Bank of Commerce will post 5.5 earnings per share for the current fiscal year.

Canadian Imperial Bank of Commerce Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 28th. Investors of record on Friday, March 27th will be given a dividend of $1.07 per share. This represents a $4.28 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend is Friday, March 27th. Canadian Imperial Bank of Commerce's dividend payout ratio is currently 44.61%.

Institutional Investors Weigh In On Canadian Imperial Bank of Commerce

Several institutional investors have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC purchased a new position in shares of Canadian Imperial Bank of Commerce in the 2nd quarter valued at approximately $262,000. Cetera Investment Advisers grew its position in Canadian Imperial Bank of Commerce by 1.0% during the 2nd quarter. Cetera Investment Advisers now owns 27,792 shares of the bank's stock worth $1,969,000 after purchasing an additional 268 shares during the last quarter. MAI Capital Management grew its position in Canadian Imperial Bank of Commerce by 57.5% during the 2nd quarter. MAI Capital Management now owns 737 shares of the bank's stock worth $52,000 after purchasing an additional 269 shares during the last quarter. American Century Companies Inc. increased its stake in Canadian Imperial Bank of Commerce by 10.8% during the 2nd quarter. American Century Companies Inc. now owns 348,986 shares of the bank's stock valued at $24,772,000 after purchasing an additional 33,908 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in Canadian Imperial Bank of Commerce by 3.0% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 2,614,421 shares of the bank's stock valued at $185,219,000 after purchasing an additional 75,948 shares in the last quarter. Institutional investors and hedge funds own 49.88% of the company's stock.

About Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce NYSE: CM, commonly known as CIBC, is a major Canadian financial institution headquartered in Toronto. Formed in 1961 through the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada, CIBC is one of Canada's largest banks and provides a broad range of banking and financial services to retail, small business, commercial and institutional clients.

CIBC's activities span personal and business banking, wealth management, capital markets and corporate banking.

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