Bank of Nova Scotia Makes New Investment in Canadian Imperial Bank of Commerce $CM

Key Points

• Bank of Nova Scotia acquired 11.27 million CIBC shares during the second quarter, valued at approximately $1.30 billion and representing about 1.23% of CIBC and 2% of Scotia’s portfolio.
• CIBC reported quarterly revenue of $5.89 billion and earnings of $1.86 per share, exceeding analysts’ estimates, while revenue increased 14% year over year.
• The bank pays a quarterly dividend of $1.07 per share, equivalent to an annualized $4.28 and a 3.7% yield. Analysts maintain a “Moderate Buy” consensus with a target price of $167.

Bank of Nova Scotia purchased a new stake in shares of Canadian Imperial Bank of Commerce (NYSE:CM - Free Report) TSE: CM in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 11,268,708 shares of the bank's stock, valued at approximately $1,297,567,000. Canadian Imperial Bank of Commerce makes up about 2.0% of Bank of Nova Scotia's portfolio, making the stock its 11th largest position. Bank of Nova Scotia owned about 1.23% of Canadian Imperial Bank of Commerce at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Deutsche Bank AG purchased a new stake in shares of Canadian Imperial Bank of Commerce in the 2nd quarter worth approximately $237,643,000. Mediolanum International Funds Ltd increased its holdings in Canadian Imperial Bank of Commerce by 142.8% during the first quarter. Mediolanum International Funds Ltd now owns 142,455 shares of the bank's stock valued at $13,086,000 after buying an additional 83,784 shares during the period. Investment Management Corp of Ontario increased its holdings in Canadian Imperial Bank of Commerce by 38.6% during the fourth quarter. Investment Management Corp of Ontario now owns 290,749 shares of the bank's stock valued at $26,345,000 after buying an additional 80,914 shares during the period. Legal & General Group Plc raised its stake in Canadian Imperial Bank of Commerce by 2.0% in the fourth quarter. Legal & General Group Plc now owns 6,475,253 shares of the bank's stock worth $587,790,000 after buying an additional 125,069 shares in the last quarter. Finally, Intech Investment Management LLC raised its stake in Canadian Imperial Bank of Commerce by 6.5% in the fourth quarter. Intech Investment Management LLC now owns 343,828 shares of the bank's stock worth $31,211,000 after buying an additional 21,078 shares in the last quarter. Institutional investors own 49.88% of the company's stock.

Canadian Imperial Bank of Commerce Stock Performance

Shares of Canadian Imperial Bank of Commerce stock opened at $116.38 on Friday. The company has a 50 day moving average price of $117.13 and a 200 day moving average price of $108.27. The firm has a market capitalization of $106.24 billion, a P/E ratio of 15.99, a PEG ratio of 1.27 and a beta of 1.01. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.11. Canadian Imperial Bank of Commerce has a 52 week low of $72.57 and a 52 week high of $124.86.

Canadian Imperial Bank of Commerce (NYSE:CM - Get Free Report) TSE: CM last released its earnings results on Thursday, May 28th. The bank reported $1.86 earnings per share for the quarter, topping the consensus estimate of $1.78 by $0.08. Canadian Imperial Bank of Commerce had a net margin of 15.84% and a return on equity of 16.31%. The company had revenue of $5.89 billion for the quarter, compared to the consensus estimate of $5.86 billion. During the same quarter in the previous year, the firm earned $2.05 EPS. Canadian Imperial Bank of Commerce's revenue was up 14.0% compared to the same quarter last year. Sell-side analysts expect that Canadian Imperial Bank of Commerce will post 7.41 EPS for the current year.

Canadian Imperial Bank of Commerce Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 28th. Shareholders of record on Monday, June 29th were given a dividend of $1.07 per share. The ex-dividend date of this dividend was Monday, June 29th. This represents a $4.28 dividend on an annualized basis and a yield of 3.7%. Canadian Imperial Bank of Commerce's payout ratio is currently 42.58%.

Wall Street Analyst Weigh In

A number of brokerages have commented on CM. Weiss Ratings upgraded shares of Canadian Imperial Bank of Commerce from a "buy (b)" rating to a "buy (b+)" rating in a report on Friday, July 31st. Desjardins cut shares of Canadian Imperial Bank of Commerce from a "buy" rating to a "hold" rating in a report on Tuesday, August 4th. Keefe, Bruyette & Woods started coverage on shares of Canadian Imperial Bank of Commerce in a research report on Friday. They issued a "market perform" rating on the stock. Raymond James Financial reiterated a "market perform" rating on shares of Canadian Imperial Bank of Commerce in a research note on Tuesday, May 12th. Finally, Royal Bank Of Canada boosted their price objective on shares of Canadian Imperial Bank of Commerce from $147.00 to $167.00 and gave the stock an "outperform" rating in a research note on Monday, June 1st. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $167.00.

Canadian Imperial Bank of Commerce Company 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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