Comerica Incorporated (NYSE:CMA) Sees Significant Decline in Short Interest

Key Points

• Short interest in Comerica Incorporated (NYSE:CMA) decreased by 29.8% in August, dropping from 8,010,000 shares to 5,620,000 shares, representing 4.4% of the company's stock.
• Comerica reported a quarterly earnings per share (EPS) of $1.42, exceeding analysts' expectations of $1.23, and achieved a revenue of $849 million for the quarter.
• The company announced a quarterly dividend of $0.71, with a payout ratio of 54.41% and a dividend yield of 4.1%, payable on October 1st.

Comerica Incorporated (NYSE:CMA - Get Free Report) was the target of a large drop in short interest in the month of August. As of August 15th, there was short interest totaling 5,620,000 shares, a drop of 29.8% from the July 31st total of 8,010,000 shares. Based on an average daily trading volume, of 1,940,000 shares, the short-interest ratio is presently 2.9 days. Currently, 4.4% of the company's shares are sold short. Currently, 4.4% of the company's shares are sold short. Based on an average daily trading volume, of 1,940,000 shares, the short-interest ratio is presently 2.9 days.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Citigroup boosted their price target on shares of Comerica from $54.00 to $61.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 2nd. JPMorgan Chase & Co. boosted their price target on shares of Comerica from $52.00 to $60.00 and gave the stock an "underweight" rating in a research report on Tuesday, July 1st. Cantor Fitzgerald assumed coverage on shares of Comerica in a research report on Wednesday. They issued a "neutral" rating and a $72.00 price target on the stock. Raymond James Financial restated a "market perform" rating on shares of Comerica in a research report on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods boosted their price target on shares of Comerica from $69.00 to $73.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. Five equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, Comerica currently has a consensus rating of "Hold" and a consensus price target of $65.00.

Comerica Stock Up 0.3%

CMA stock traded up $0.18 during midday trading on Thursday, reaching $69.43. 1,286,379 shares of the company's stock traded hands, compared to its average volume of 1,681,153. The company has a market cap of $8.92 billion, a price-to-earnings ratio of 13.30, a P/E/G ratio of 12.46 and a beta of 0.97. The firm's fifty day moving average price is $67.14 and its 200-day moving average price is $60.46. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.84. Comerica has a 52 week low of $48.12 and a 52 week high of $73.45.

Comerica (NYSE:CMA - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.42 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.19. The business had revenue of $849.00 million during the quarter, compared to analyst estimates of $844.39 million. Comerica had a net margin of 14.92% and a return on equity of 10.92%. During the same quarter in the previous year, the business posted $1.49 EPS. As a group, sell-side analysts forecast that Comerica will post 5.28 earnings per share for the current fiscal year.

Comerica Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Monday, September 15th will be paid a $0.71 dividend. The ex-dividend date is Monday, September 15th. This represents a $2.84 annualized dividend and a dividend yield of 4.1%. Comerica's dividend payout ratio is presently 54.41%.

Insider Buying and Selling at Comerica

In other news, insider James Mcgregor Carr sold 4,000 shares of the firm's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $67.28, for a total transaction of $269,120.00. Following the completion of the transaction, the insider owned 33,471 shares of the company's stock, valued at approximately $2,251,928.88. This trade represents a 10.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Allysun C. Fleming sold 2,100 shares of the firm's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $67.03, for a total transaction of $140,763.00. Following the transaction, the executive vice president directly owned 9,424 shares of the company's stock, valued at $631,690.72. The trade was a 18.22% decrease in their position. The disclosure for this sale can be found here. 0.19% of the stock is currently owned by company insiders.

Institutional Trading of Comerica

Several institutional investors have recently made changes to their positions in CMA. Norges Bank bought a new stake in shares of Comerica in the 2nd quarter worth $97,138,000. Primecap Management Co. CA grew its stake in shares of Comerica by 228.8% in the 1st quarter. Primecap Management Co. CA now owns 1,670,110 shares of the financial services provider's stock worth $98,637,000 after acquiring an additional 1,162,110 shares in the last quarter. Azora Capital LP grew its stake in shares of Comerica by 53.7% in the 1st quarter. Azora Capital LP now owns 1,899,198 shares of the financial services provider's stock worth $112,167,000 after acquiring an additional 663,513 shares in the last quarter. Kodai Capital Management LP bought a new stake in shares of Comerica in the 1st quarter worth $32,864,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of Comerica in the 2nd quarter worth $31,365,000. Institutional investors own 80.74% of the company's stock.

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.