Fintel reports that on September 26, 2023, Odeon Capital downgraded their outlook for Comerica (NYSE:CMA) from Buy to Hold.

Analyst Price Forecast Suggests 41.91% Upside

As of August 31, 2023, the average one-year price target for Comerica is 58.82. The forecasts range from a low of 45.45 to a high of $78.75. The average price target represents an increase of 41.91% from its latest reported closing price of 41.45.

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The projected annual revenue for Comerica is 4,082MM, an increase of 7.56%. The projected annual non-GAAP EPS is 10.22.

Comerica Declares $0.71 Dividend

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

At the current share price of $41.45 / share, the stock’s dividend yield is 6.85%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.51%, the lowest has been 2.59%, and the highest has been 9.95%. The standard deviation of yields is 1.61 (n=236).

The current dividend yield is 1.46 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.

What is the Fund Sentiment?

There are 1104 funds or institutions reporting positions in Comerica. This is a decrease of 84 owner(s) or 7.07% in the last quarter. Average portfolio weight of all funds dedicated to CMA is 0.16%, a decrease of 0.83%. Total shares owned by institutions decreased in the last three months by 4.14% to 117,442K shares. The put/call ratio of CMA is 0.90, indicating a bullish outlook.

What are Other Shareholders Doing?

First Trust Advisors holds 4,757K shares representing 3.61% ownership of the company. In it’s prior filing, the firm reported owning 3,879K shares, representing an increase of 18.46%. The firm increased its portfolio allocation in CMA by 17.99% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,082K shares representing 3.10% ownership of the company. In it’s prior filing, the firm reported owning 4,056K shares, representing an increase of 0.62%. The firm decreased its portfolio allocation in CMA by 9.42% over the last quarter.

RDVY – First Trust Rising Dividend Achievers ETF holds 3,712K shares representing 2.82% ownership of the company. In it’s prior filing, the firm reported owning 3,384K shares, representing an increase of 8.85%. The firm increased its portfolio allocation in CMA by 4.97% over the last quarter.

DVY – iShares Select Dividend ETF holds 3,505K shares representing 2.66% ownership of the company. In it’s prior filing, the firm reported owning 2,623K shares, representing an increase of 25.18%. The firm decreased its portfolio allocation in CMA by 12.51% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 3,399K shares representing 2.58% ownership of the company. In it’s prior filing, the firm reported owning 3,438K shares, representing a decrease of 1.13%. The firm decreased its portfolio allocation in CMA by 8.22% over the last quarter.

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.

This article originally appeared on Fintel

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