BlackRock Inc. Takes $157.78 Million Position in Canadian Imperial Bank of Commerce $CM

Key Points

• BlackRock acquired 1.37 million CIBC shares worth approximately $157.8 million in the second quarter, giving it a 0.15% stake. Institutional investors collectively own nearly 49.9% of the bank.
• CIBC exceeded quarterly earnings expectations, reporting EPS of $1.96 versus the $1.80 consensus and revenue of $5.97 billion. Analysts maintain a “Moderate Buy” consensus with a $167 average price target.
• CIBC declared a quarterly dividend of $1.07 per share, equal to $4.28 annually and a yield of about 3.7%. Investors should note that a C$269 million Caribbean Bank sale charge and a decline in the CET1 ratio weighed on the latest results.

BlackRock Inc. bought a new position 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 filing with the Securities and Exchange Commission (SEC). The institutional investor bought 1,372,030 shares of the bank's stock, valued at approximately $157,783,000. BlackRock Inc. owned 0.15% of Canadian Imperial Bank of Commerce as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently made changes to their positions in CM. Norges Bank purchased a new stake in Canadian Imperial Bank of Commerce during the 4th quarter valued at approximately $958,383,000. Mackenzie Financial Corp grew its stake in shares of Canadian Imperial Bank of Commerce by 69.3% in the 4th quarter. Mackenzie Financial Corp now owns 10,800,606 shares of the bank's stock valued at $986,173,000 after purchasing an additional 4,419,968 shares during the last quarter. FIL Ltd grew its stake in shares of Canadian Imperial Bank of Commerce by 26.1% in the 4th quarter. FIL Ltd now owns 12,756,323 shares of the bank's stock valued at $1,156,438,000 after purchasing an additional 2,643,495 shares during the last quarter. Deutsche Bank AG acquired a new position in shares of Canadian Imperial Bank of Commerce in the second quarter valued at approximately $237,643,000. Finally, The Manufacturers Life Insurance Company increased its holdings in shares of Canadian Imperial Bank of Commerce by 24.0% in the fourth quarter. The Manufacturers Life Insurance Company now owns 8,897,236 shares of the bank's stock valued at $808,281,000 after purchasing an additional 1,720,220 shares during the period. Hedge funds and other institutional investors own 49.88% of the company's stock.

Canadian Imperial Bank of Commerce Stock Down 0.3%

Canadian Imperial Bank of Commerce stock opened at $114.46 on Friday. The stock's 50 day moving average price is $117.46 and its 200 day moving average price is $109.00. Canadian Imperial Bank of Commerce has a 1-year low of $76.10 and a 1-year high of $124.86. The company has a market cap of $104.48 billion, a PE ratio of 15.28, a price-to-earnings-growth ratio of 1.20 and a beta of 1.01. 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 released its earnings results on Thursday, August 27th. The bank reported $1.96 EPS for the quarter, beating analysts' consensus estimates 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 return on equity of 17.07% and a net margin of 16.09%. On average, sell-side analysts predict that Canadian Imperial Bank of Commerce will post 7.41 EPS for the current fiscal year.

Canadian Imperial Bank of Commerce Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Monday, September 28th will be paid a $1.07 dividend. The ex-dividend date is Monday, September 28th. This represents a $4.28 annualized dividend and a dividend yield of 3.7%. Canadian Imperial Bank of Commerce's dividend payout ratio (DPR) is 42.58%.

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

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on CM shares. Keefe, Bruyette & Woods started coverage on Canadian Imperial Bank of Commerce in a report on Friday, August 21st. They set a "market perform" rating for the company. TD Securities reissued a "buy" rating on shares of Canadian Imperial Bank of Commerce in a research note on Wednesday, August 12th. Royal Bank Of Canada restated an "outperform" rating on shares of Canadian Imperial Bank of Commerce in a research report on Friday. Desjardins cut shares of Canadian Imperial Bank of Commerce from a "buy" rating to a "hold" rating in a research note on Tuesday, August 4th. Finally, Raymond James Financial reaffirmed a "market perform" rating on shares of Canadian Imperial Bank of Commerce in a report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Canadian Imperial Bank of Commerce 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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