Comerica Boosts Shareholder Value - Analyst Blog
April 24 2013 - 1:20PM
Zacks
Comerica Incorporated (CMA) continues its
efforts to boost shareholder value. Recently, its Board of
Directors increased the current share buyback program by up to 10
million shares. Additionally, the Board announced a quarterly cash
dividend of 17 cents per share. The dividend will be paid on Jul 1,
to common stock shareholders of record as of Jun 14.
These actions come following the Federal Reserve’s approval of
Comerica's 2013 capital plan under the Comprehensive Capital
Analysis and Review (CCAR) in March. The plan included share
repurchase of up to $288 million for the upcoming four quarters
beginning in the second quarter of 2013 and ending in the first
quarter of the next year.
Comerica has maintained its healthy capital deployment activities
over the years. Earlier, in January, Comerica announced a 13%
increase in its quarterly dividend to 17 cents per share, which was
paid on Apr 1. This increase was part of the company’s 2012 Capital
Plan.
The latest boost in its share repurchase authorization reflects the
company’s commitment to return value to shareholders with its
strong cash generation capabilities. Further, Comerica’s current
capital position may allow it to further enhance shareholder value.
The company’s cash and due from banks was $877 million as of Mar
31, 2013.
Going forward, we believe that Comerica’s continuous geographic
diversification beyond its traditional and relatively
slower-growing Midwest markets could bolster growth in the upcoming
quarters. Also, revenue synergies from the Sterling acquisition
should be a driver of top-line growth. However, the company’s
significant exposure to risky commercial real estate markets,
unsettled economic environment and other regulatory issues are
matters of concern.
Comerica currently carries a Zacks Rank #3 (Hold). Other banks that
are performing better than Comerica include JPMorgan Chase
& Co. (JPM), Fifth Third Bancorp
(FITB) and State Street Corporation (STT). All
these stocks carry a Zacks Rank #2 (Buy).
COMERICA INC (CMA): Free Stock Analysis Report
FIFTH THIRD BK (FITB): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis Report
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