Mitchell Bruce, Executive Vice President of Comerica Inc . (NYSE:CMA), recently sold a significant portion of the company's stock. On October 22, Bruce sold shares totaling $470,466. The sales were executed at prices ranging from $62.11 to $62.33 per share.
In addition to the sales, Bruce also acquired shares through stock option exercises. These acquisitions, which occurred at prices between $49.20 and $60.12 per share, amounted to a total of $247,727.
Following these transactions, Bruce's direct ownership of Comerica stock stands at 16,428 shares. These transactions reflect routine adjustments in stock holdings by executives, often part of their compensation packages or financial planning strategies.
In other recent news, Comerica Incorporated (NYSE:CMA) reported strong third-quarter earnings of $184 million, surpassing expectations. This robust performance was mainly attributed to a 1.3% increase in average deposits and net interest income of $534 million. Following these positive results, several analyst firms, including Baird, Raymond James, Stephens, Citi, and Barclays (LON:BARC), have revised their price targets for Comerica. Baird, for example, raised the bank's price target from $65.00 to $75.00 while maintaining an Outperform rating, citing solid pre-provision net revenue performance.
The bank also announced its plans to resume share buybacks in the fourth quarter of 2024, intending to repurchase approximately $100 million in shares. Despite a projected 5% decline in average loans and a 3-4% decrease in average deposits for 2024, Comerica's management remains optimistic about net interest income growth beyond 2024. These recent developments reflect an increased confidence in Comerica's short-term financial prospects, particularly in terms of net interest income.
InvestingPro Insights
Recent transactions by Comerica Inc. (NYSE:CMA) Executive Vice President Mitchell Bruce offer a glimpse into insider activity, but a broader look at the company's financial metrics provides additional context for investors.
According to InvestingPro data, Comerica's market capitalization stands at $8.38 billion, with a price-to-earnings ratio of 15.64. This relatively modest P/E ratio suggests the stock may be reasonably valued compared to earnings. The company's dividend yield of 4.58% is particularly noteworthy, especially considering an InvestingPro Tip that Comerica has maintained dividend payments for 54 consecutive years. This long-standing commitment to shareholder returns could be attractive to income-focused investors.
Despite the recent insider sales, Comerica has shown strong performance in the market. An InvestingPro Tip highlights that the company has delivered a high return over the last year, with data showing a one-year price total return of 69.58%. This impressive performance is complemented by a strong three-month return of 22.48%, indicating recent positive momentum.
However, investors should be aware that Comerica faces some challenges. An InvestingPro Tip points out that the company suffers from weak gross profit margins, which could impact profitability. Additionally, revenue for the last twelve months as of Q3 2024 was $3.161 billion, with a revenue growth rate of -15.03% over the same period, signaling potential headwinds in the company's top-line performance.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Comerica, providing a deeper understanding of the company's financial health and market position.
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