Unusual Put Option Trade in Comerica Worth $538.01K

Investing

Published: May 15, 2023 3:45 am

Last Updated: May 15, 2023 12:47 pm

On May 12, 2023 at 14:39:18 ET an unusually large $538.01K block of Put contracts in Comerica (CMA) was bought, with a strike price of $25.00 / share, expiring in 161 day(s) (on October 20, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.41 sigmas above the mean, placing it in the 99.77th percentile of all recent large trades made in CMA options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 1225 funds or institutions reporting positions in Comerica. This is a decrease of 45 owner(s) or 3.54% in the last quarter. Average portfolio weight of all funds dedicated to CMA is 0.21%, a decrease of 3.94%. Total shares owned by institutions decreased in the last three months by 4.21% to 121,081K shares. The put/call ratio of CMA is 1.47, indicating a bearish outlook.

Analyst Price Forecast Suggests 81.41% Upside

As of May 11, 2023, the average one-year price target for Comerica is 59.27. The forecasts range from a low of 42.42 to a high of $84.10. The average price target represents an increase of 81.41% from its latest reported closing price of 32.67.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Comerica is 4,082MM, an increase of 9.64%. The projected annual non-GAAP EPS is 10.22.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 3,973K shares representing 3.02% ownership of the company. In it’s prior filing, the firm reported owning 3,883K shares, representing an increase of 2.25%. The firm decreased its portfolio allocation in CMA by 11.17% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 3,374K shares representing 2.56% ownership of the company. In it’s prior filing, the firm reported owning 3,321K shares, representing an increase of 1.55%. The firm decreased its portfolio allocation in CMA by 11.59% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 3,027K shares representing 2.30% ownership of the company. In it’s prior filing, the firm reported owning 2,966K shares, representing an increase of 2.04%. The firm decreased its portfolio allocation in CMA by 11.58% over the last quarter.

Charles Schwab Investment Management holds 3,020K shares representing 2.29% ownership of the company. In it’s prior filing, the firm reported owning 3,150K shares, representing a decrease of 4.30%. The firm decreased its portfolio allocation in CMA by 48.34% over the last quarter.

Geode Capital Management holds 2,742K shares representing 2.08% ownership of the company. In it’s prior filing, the firm reported owning 2,607K shares, representing an increase of 4.94%. The firm decreased its portfolio allocation in CMA by 8.52% over the last quarter.

Comerica Declares $0.71 Dividend

On April 25, 2023 the company declared a regular quarterly dividend of $0.71 per share ($2.84 annualized). Shareholders of record as of June 15, 2023 will receive the payment on July 1, 2023. Previously, the company paid $0.71 per share.

At the current share price of $32.67 / share, the stock’s dividend yield is 8.69%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.18%, the lowest has been 1.38%, and the highest has been 9.95%. The standard deviation of yields is 1.65 (n=237).

The current dividend yield is 2.74 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.29. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.04%, demonstrating that it has increased its dividend over time.

Comerica Background Information
(This description is provided by the company.)

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Floridaand Michigan, with select businesses operating in several other states, as well as in Canadaand Mexico.

See all Comerica regulatory filings.

This article originally appeared on Fintel