Swiss National Bank Reduces Stake in Comerica by 4,100 Shares

The Swiss National Bank has decreased its holdings in Comerica Incorporated (NYSE: CMA) by 4,100 shares, representing a reduction of 1.6% during the second quarter of 2023. According to the bank’s recent disclosure to the Securities and Exchange Commission (SEC), it now owns a total of 250,700 shares valued at approximately $14.95 million.

Several other institutional investors have also adjusted their positions in Comerica recently. For instance, Dimensional Fund Advisors LP increased its stake by 9.4% in the first quarter, acquiring an additional 472,409 shares, bringing its total to 5,508,229 shares valued at around $325.3 million. Similarly, Charles Schwab Investment Management Inc. raised its holdings by 5.2%, now owning 4,663,441 shares worth $275.4 million.

Another notable adjustment was made by Primecap Management Co., which boosted its stake by a significant 55.3% during the second quarter, acquiring an additional 923,690 shares. This brings its total ownership to 2,593,800 shares, valued at approximately $154.7 million. Geode Capital Management LLC also increased its stake by 3.0%, while Goldman Sachs Group Inc. raised its position by 9.6%.

Hedge funds and institutional investors collectively own about 80.74% of Comerica’s stock, reflecting significant confidence in the financial services provider.

Comerica’s Financial Performance and Dividend Declaration

As of October 5, 2023, Comerica shares opened at $80.17, and the company boasts a market capitalization of $10.24 billion. The bank has a price-to-earnings ratio of 15.30 and a beta of 1.04, indicating its stock’s volatility relative to the market. Additionally, Comerica has a debt-to-equity ratio of 0.77 and a current ratio of 0.96.

In recent developments, Comerica announced a quarterly dividend of $0.71, which will be distributed on January 1, 2024, to investors who are on record as of December 15, 2023. This dividend represents an annualized total of $2.84 and yields 3.5%, with a payout ratio of 54.20%.

Analysts’ Insights and Future Projections

Market analysts have expressed varied sentiments regarding Comerica’s stock. In recent reports, Jefferies Financial Group raised its price target from $75.00 to $85.00 and assigned a “hold” rating. Truist Financial followed suit, increasing its target price from $68.00 to $70.00, while Wells Fargo & Company raised its target from $65.00 to a notable $97.00, maintaining an “equal weight” rating.

Royal Bank of Canada also revised its target for Comerica, increasing it from $75.00 to $86.00, classifying the stock as “outperform.” Cantor Fitzgerald initiated coverage on Comerica, offering a “neutral” rating with a price target of $72.00. Overall, analysts have issued three “buy” ratings, eighteen “hold” ratings, and two “sell” ratings, resulting in an average rating of “hold” and a target price of $74.55.

Comerica Incorporated, headquartered in Dallas, Texas, provides a range of financial products and services through its subsidiaries. The company operates in various segments, including Commercial Bank, Retail Bank, Wealth Management, and Finance, serving small to medium-sized businesses as well as multinational corporations and governmental entities.