James Harry Weber, Executive Vice President at Comerica Inc . (NYSE:CMA), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Weber sold a total of 6,500 shares of Comerica's common stock on October 24, 2024. The shares were sold at prices ranging from $63.22 to $63.23, amounting to a total transaction value of $410,993.
Following these transactions, Weber's direct ownership of Comerica stock stands at 15,773 shares. The filing also noted that the shares sold were acquired through employee stock plans and restricted stock units.
In other recent news, Comerica Incorporated (NYSE:CMA) has been the focus of several analyst updates following a robust third-quarter performance. Baird upgraded Comerica's stock target from $65.00 to $75.00, citing solid pre-provision net revenue (PPNR) trends and a stronger-than-expected earnings report. Raymond James, Stephens, and Citi also raised their price targets for Comerica, noting strong Q3 results, controlled expenses, and an anticipated rise in net interest income.
Further, Comerica reported Q3 earnings per share (EPS) of $1.33, surpassing both consensus and Baird's estimates. This was accompanied by an announcement of a planned $100 million share buyback in the fourth quarter of 2024, signaling a shift towards returning capital to shareholders. Comerica's management expressed confidence in the bank's financial prospects, with expectations of net interest income growth into 2025.
Despite these positive developments, the bank's outlook for 2024 includes a projected 5% decline in average loans and a 3-4% decrease in average deposits. Barclays raised Comerica's stock target to $66.00 but maintained an Underweight rating, citing weaker than anticipated fee income and a rise in nonperforming assets.
These recent developments reflect an increased confidence in Comerica's short-term financial prospects and strategic financial management, particularly in terms of net interest income and capital distribution policies.
InvestingPro Insights
As James Harry Weber reduces his stake in Comerica Inc. (NYSE:CMA), investors might be interested in the company's current financial position and market performance. According to InvestingPro data, Comerica's market capitalization stands at $8.23 billion, with a price-to-earnings ratio of 15.36, suggesting a relatively moderate valuation compared to industry peers.
Despite the recent insider sale, Comerica has shown strong market performance. The company has delivered an impressive 73.63% total return over the past year, and a robust 20.67% return in the last three months. This positive momentum is reflected in an InvestingPro Tip, which highlights Comerica's "Strong return over the last three months."
Income-focused investors may find Comerica's dividend policy attractive. The company boasts a dividend yield of 4.51% and has maintained dividend payments for 54 consecutive years, as noted in another InvestingPro Tip. This long-standing commitment to shareholder returns could provide some reassurance amid the executive's stock sale.
It's worth noting that while Comerica has demonstrated strong recent performance, the company faces some challenges. An InvestingPro Tip indicates that Comerica "Suffers from weak gross profit margins," which investors should consider when evaluating the stock's long-term prospects.
For a more comprehensive analysis, InvestingPro offers additional insights, with 8 more tips available for Comerica. These tips could provide valuable context for understanding the company's financial health and future outlook in light of the recent insider transaction.
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