Addenda Capital Inc. Sells 19,197 Shares of Canadian Imperial Bank of Commerce $CM

Key Points

• Addenda Capital reduced its CIBC stake by 6.1% in the second quarter, selling 19,197 shares and retaining 295,989 shares valued at approximately $34 million.
• CIBC reported strong quarterly results, with adjusted EPS rising 26% year over year to C$2.73 and earnings exceeding analyst expectations, supported by growth across its domestic, capital-markets and U.S. businesses.
• Despite the profit beat, a C$269 million charge tied to the CIBC Caribbean sale and a decline in the CET1 ratio to 13.4% weighed on investor sentiment. Analysts maintain a “Moderate Buy” consensus with a C$167 price target, while CIBC declared a quarterly dividend of C$1.07 per share.

Addenda Capital Inc. decreased its stake in shares of Canadian Imperial Bank of Commerce (NYSE:CM - Free Report) TSE: CM by 6.1% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 295,989 shares of the bank's stock after selling 19,197 shares during the quarter. Canadian Imperial Bank of Commerce comprises about 1.2% of Addenda Capital Inc.'s investment portfolio, making the stock its 25th biggest holding. Addenda Capital Inc.'s holdings in Canadian Imperial Bank of Commerce were worth $34,039,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in CM. Sivia Capital Partners LLC bought a new position in Canadian Imperial Bank of Commerce in the 2nd quarter worth about $262,000. EverSource Wealth Advisors LLC boosted its stake in Canadian Imperial Bank of Commerce by 12.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,801 shares of the bank's stock valued at $128,000 after purchasing an additional 193 shares during the last quarter. Brown Advisory Inc. lifted its stake in Canadian Imperial Bank of Commerce by 2.6% during the 2nd quarter. Brown Advisory Inc. now owns 6,277 shares of the bank's stock valued at $445,000 after acquiring an additional 160 shares during the period. Qube Research & Technologies Ltd lifted its stake in Canadian Imperial Bank of Commerce by 74.6% during the 2nd quarter. Qube Research & Technologies Ltd now owns 336,017 shares of the bank's stock valued at $23,833,000 after acquiring an additional 143,588 shares during the period. Finally, NewEdge Advisors LLC boosted its holdings in shares of Canadian Imperial Bank of Commerce by 7,315.0% during the 2nd quarter. NewEdge Advisors LLC now owns 2,966 shares of the bank's stock valued at $210,000 after acquiring an additional 2,926 shares during the last quarter. 49.88% of the stock is owned by institutional investors.

Canadian Imperial Bank of Commerce News Summary

Here are the key news stories impacting Canadian Imperial Bank of Commerce this week:

• Positive Sentiment: Adjusted third-quarter earnings per share rose 26% year over year to $2.73, marking CIBC’s ninth consecutive quarter of double-digit EPS growth. Adjusted net income increased to C$2.648 billion on revenue of C$8.368 billion, while return on equity reached 16.8%. CIBC Notches a Ninth Straight Quarter of Double-Digit Growth
• Positive Sentiment: Profit exceeded analyst expectations, supported by growth in domestic retail banking, capital markets and CIBC’s U.S. operations. Reported quarterly earnings reached C$2.41 billion, up from C$2.1 billion a year earlier. CIBC Beats Profit Forecast on Growth in Domestic Banking
• Positive Sentiment: CIBC declared a quarterly dividend of C$1.07 per share, payable October 28 to shareholders of record September 28. The dividend supports an annualized yield of approximately 3.7% and may appeal to income-focused investors.
• Neutral Sentiment: Analysts’ recent price targets remain above the current trading range, with targets of C$144, C$157 and C$167. However, these targets predate the latest earnings reaction and may not yet reflect investor concerns about capital and one-time costs.
• Negative Sentiment: The quarter included C$269 million in charges related to the announced sale of CIBC Caribbean Bank. The bank’s CET1 capital ratio also declined to 13.4% from 13.6%, partly because of the charge, a minority investment closing and share repurchases. Those factors offset the operating-profit beat and contributed to the weaker market response. CIBC Slides After Earnings as Sale Charge and Capital Ratio Dip Offset a Profit Beat

Analysts Set New Price Targets

CM has been the subject of a number of research analyst reports. Desjardins downgraded shares of Canadian Imperial Bank of Commerce from a "buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Weiss Ratings upgraded Canadian Imperial Bank of Commerce from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Thursday. Jefferies Financial Group reaffirmed a "hold" rating on shares of Canadian Imperial Bank of Commerce in a research report on Thursday, May 28th. Keefe, Bruyette & Woods assumed coverage on shares of Canadian Imperial Bank of Commerce in a research note on Friday, August 21st. They issued a "market perform" rating on the stock. Finally, TD Securities reissued a "buy" rating on shares of Canadian Imperial Bank of Commerce in a report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $167.00.

Canadian Imperial Bank of Commerce Stock Up 0.1%

Shares of CM stock opened at $114.46 on Monday. The company has a market capitalization of $104.48 billion, a price-to-earnings ratio of 15.28, a PEG ratio of 1.19 and a beta of 1.01. Canadian Imperial Bank of Commerce has a one year low of $76.10 and a one year high of $124.86. The company's fifty day moving average price is $117.46 and its 200-day moving average price is $109.08. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.05 and a quick ratio of 1.05.

Canadian Imperial Bank of Commerce (NYSE:CM - Get Free Report) TSE: CM last issued its earnings results on Thursday, August 27th. The bank reported $1.96 earnings per share for the quarter, topping the consensus estimate of $1.80 by $0.16. The company had revenue of $5.97 billion during the quarter, compared to the consensus estimate of $5.74 billion. Canadian Imperial Bank of Commerce had a net margin of 16.09% and a return on equity of 17.02%. Sell-side analysts expect that Canadian Imperial Bank of Commerce will post 7.41 EPS for the current fiscal year.

Canadian Imperial Bank of Commerce Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Monday, September 28th will be issued a dividend of $1.07 per share. This represents a $4.28 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Monday, September 28th. Canadian Imperial Bank of Commerce's dividend payout ratio is 41.39%.

Canadian Imperial Bank of Commerce Profile

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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