Wedge Capital Sells 8,048 Shares of Comerica, Adjusts Holdings

Wedge Capital Management L L P NC has reduced its stake in Comerica Incorporated (NYSE: CMA) by 27.5% during the third quarter of 2023. According to the company’s recent 13F filing with the Securities and Exchange Commission, Wedge Capital sold 8,048 shares, bringing its total holdings to 21,179 shares. These shares were valued at approximately $1.45 million at the end of the quarter.

This decision is part of a broader trend among institutional investors, as several other hedge funds have also adjusted their positions in Comerica. For instance, FNY Investment Advisers LLC entered a new position in the second quarter, investing around $35,000. Meanwhile, Geneos Wealth Management Inc. increased its stake by 41.8% in the first quarter, now owning 597 shares worth $35,000 after acquiring an additional 176 shares.

Other notable adjustments include the Employees Retirement System of Texas, which purchased a new position worth $48,000, and BI Asset Management Fondsmaeglerselskab A S, which also bought shares valued at $55,000 in the first quarter. Additionally, MAI Capital Management raised its holdings by 32.1%, now owning 942 shares valued at $56,000. Overall, institutional investors, including hedge funds, hold approximately 80.74% of Comerica’s stock.

Analyst Ratings and Stock Performance

Recent analysis of Comerica stock has produced a range of ratings from various research firms. Piper Sandler set a target price of $82.00, assigning a “neutral” rating in an October report. Truist Financial increased its price target from $68.00 to $70.00, maintaining a “hold” rating. In contrast, Royal Bank of Canada raised its price objective from $75.00 to $86.00, designating it as “outperform.”

Other firms, including Cantor Fitzgerald and Evercore ISI, also issued recommendations ranging from “neutral” to “in-line” with respective price targets of $72.00 and $88.00. Currently, two investment analysts have rated Comerica as a Buy, eighteen have issued a Hold rating, and two have given a Sell rating. Data from MarketBeat indicates that the stock holds an average rating of “Hold” with an estimated price target of $74.26.

On the trading front, shares of Comerica were down by 0.3% on Wednesday, opening at $88.47. The company’s market capitalization stands at $11.31 billion, with a price-to-earnings ratio of 16.88 and a beta of 1.07. The stock has experienced a 1-year low of $48.12 and a high of $90.44. Its current trading averages show a 50-day moving average of $80.61 and a 200-day moving average of $71.51.

Financial Results and Upcoming Dividend

Comerica last reported its quarterly earnings on December 9, 2023, revealing earnings per share of $1.53. The company achieved a return on equity of 10.69% and a net margin of 14.91%, generating revenues of $824 million for the quarter. Analysts predict that Comerica will post earnings of $5.28 per share for the current fiscal year.

In a recent announcement, Comerica also declared a quarterly dividend of $0.71, set to be paid on January 1, 2024. Shareholders of record as of December 15 will receive this dividend, which translates to an annualized amount of $2.84 and a dividend yield of 3.2%. The ex-dividend date is the same as the record date, reaffirming the company’s commitment to returning value to its shareholders, with a current payout ratio of 54.20%.

Founded in 1849 in Detroit as the Detroit Savings Fund Institute, Comerica has grown into a leading regional banking institution with a diverse range of financial services. Headquartered in Dallas, Texas, the company provides commercial banking, retail banking, wealth management, and capital markets solutions to meet the needs of its clients.