Mauricio A. Ortiz, Executive Vice President and Chief Accounting Officer at Comerica Inc . (NYSE:CMA), recently sold a portion of his holdings in the company. According to a recent SEC filing, Ortiz sold 650 shares of Comerica's common stock on October 22, 2024, at a price of $61.79 per share. The total value of the transaction amounted to $40,163. Following this sale, Ortiz holds 11,339 shares, which include shares acquired through employee stock plans, shares purchased with reinvested dividends, and restricted stock units as of the transaction date.
In other recent news, Comerica Incorporated (NYSE:CMA) has been the subject of several analyst updates following its strong third-quarter earnings report. The company reported earnings per share of $1.33, surpassing both consensus and Baird's estimates. This prompted Baird to raise Comerica's price target from $65.00 to $75.00, citing solid pre-provision net revenue trends. Stephens and Raymond James also raised their price targets for Comerica to $70.00, while Citi increased its target to $63.00, and Barclays to $66.00.
These adjustments were largely attributed to Comerica's robust third-quarter earnings of $184 million, driven by a 1.3% increase in average deposits and a net interest income of $534 million. Comerica's management has expressed confidence in the bank's financial prospects, with expectations of net interest income growth into 2025.
The bank also plans to resume share buybacks in the fourth quarter of 2024, with approximately $100 million in shares set to be repurchased. However, Comerica's outlook for 2024 includes a projected 5% decline in average loans and a 3-4% decrease in average deposits. These recent developments reflect an increased confidence in Comerica's short-term financial prospects, particularly in terms of net interest income.
InvestingPro Insights
While Mauricio A. Ortiz's recent sale of Comerica Inc. (NYSE:CMA) shares might raise questions, it's essential to consider the broader financial context of the company. According to InvestingPro data, Comerica boasts a market capitalization of $8.37 billion and a P/E ratio of 15.64, suggesting a relatively modest valuation compared to some peers in the banking sector.
InvestingPro Tips highlight that Comerica has maintained dividend payments for an impressive 54 consecutive years, demonstrating a commitment to shareholder returns despite market fluctuations. This long-standing dividend history aligns with the company's current attractive dividend yield of 4.58%, which could be appealing to income-focused investors.
Moreover, Comerica has shown strong performance recently, with a remarkable 69.58% price total return over the past year and a 22.48% return in the last three months. These figures indicate positive momentum that may have influenced executive decision-making regarding stock holdings.
It's worth noting that while the company faces challenges such as weak gross profit margins, analysts remain optimistic about its profitability prospects for the current year. This balance of strengths and challenges provides context for understanding executive stock transactions like Ortiz's sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Comerica, providing deeper insights into the company's financial health and market position.
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