Northwest & Ethical Investments L.P. has reduced its stake in the Canadian Imperial Bank of Commerce (CIBC) by 5.6%, selling 11,362 shares in the second quarter of 2023. Following this transaction, the firm now holds 192,993 shares of CIBC, valued at approximately $13.67 million. This adjustment reflects ongoing changes among institutional investors regarding their positions in the bank.
Several other investment firms have also altered their holdings in CIBC recently. Allianz Asset Management GmbH increased its stake by 13.7% in the first quarter, acquiring an additional 9,426 shares, bringing its total to 78,376 shares, valued at around $4.41 million. Similarly, Y Intercept Hong Kong Ltd purchased a new position valued at approximately $328,000 during the same period.
Another notable change came from Cetera Investment Advisers, which raised its holdings by 1.4%, now owning 27,524 shares valued at about $1.55 million. HB Wealth Management LLC significantly increased its stake by 45.1%, resulting in ownership of 5,227 shares valued at $294,000. Finally, Federated Hermes Inc. raised its stake by 3.1%, now holding 988,399 shares worth approximately $55.65 million. Currently, institutional investors own 49.88% of CIBC’s stock.
Canadian Imperial Bank of Commerce Stock Performance
On October 25, 2023, CIBC’s stock opened at $84.94. The bank’s shares have seen a 52-week low of $53.62 and a high of $87.37. The company’s moving averages stand at $82.41 for the fifty-day period and $75.55 for the two-hundred-day period. CIBC’s financial health is reflected in its quick ratio of 1.04, a current ratio of 1.04, and a low debt-to-equity ratio of 0.14. With a market capitalization of $78.89 billion, CIBC has a price-to-earnings ratio of 14.35 and a PEG ratio of 1.76.
CIBC’s Dividend Announcement
In addition to its stock performance, CIBC recently announced a quarterly dividend of $0.97, which was paid on October 28, 2023. Shareholders recorded as of September 29, 2023 received this dividend, representing an annualized payout of $3.88 and a yield of 4.6%. This marks an increase from the previous quarterly dividend of $0.70. CIBC’s current payout ratio stands at 47.64%, indicating a stable approach to shareholder returns.
Analysts’ Outlook on CIBC
Recent evaluations from several research firms indicate a positive outlook for CIBC. Weiss Ratings reaffirmed a “buy (b)” rating on the stock, suggesting confidence in its performance. Additionally, Royal Bank of Canada raised its price target for CIBC from $112.00 to $113.00, maintaining an “outperform” rating. Other firms, including Raymond James Financial, have initiated coverage with a “market perform” rating.
Overall, the consensus rating among analysts is a “Moderate Buy,” with an average target price of $107.50. With four analysts recommending a buy and three suggesting a hold, CIBC appears well-positioned for future growth.
As CIBC continues to navigate a dynamic financial landscape, its adjustments in dividends and institutional holdings reflect a broader trend among investors seeking stability and growth in the banking sector.
