Is CIBC stock a buy right now?
As of June 2024, Canadian Imperial Bank of Commerce (CIBC) is trading at approximately $67 per share, with an average daily volume close to 4 million shares – a stable level for a leading Canadian financial institution. Recently, CIBC posted solid Q2 results, highlighted by continued strength in domestic retail banking, disciplined loan loss provisions, and improving efficiency metrics. Notably, the bank’s expense management initiatives and expansion in the U.S. market demonstrate the institution’s resilience and adaptability within a competitive sector. The moderate tailwinds from rising net interest margins, paired with stable credit quality, have contributed to an overall constructive investor sentiment, suggesting cautious optimism in the current environment. The Canadian banking sector remains a cornerstone of the TSX, valued for its robust dividend yields and regulatory oversight, and CIBC stands out for its focus on digital transformation and selective international exposure. According to the consensus view of more than 29 national and international banks, the target price for CIBC is set at $87, reflecting confidence in its underlying earnings growth and shareholder return prospects. For investors seeking a blend of stability, attractive yield, and prudent management, CIBC may warrant close consideration at these levels.
- Attractive dividend yield consistently above the TSX financial sector average.
- Strong capital ratios and risk management support stability across market cycles.
- Gains from digital banking transformations and technology investments.
- Expanding U.S. commercial banking presence enhances growth opportunities.
- Long track record of increasing shareholder dividends.
- Sensitivity to Canadian housing market trends may introduce earnings volatility.
- Expense discipline improvements remain a work in progress post-pandemic.
- What is CIBC?
- How much is CIBC stock?
- Our full analysis on CIBC </b>stock
- How to buy CIBC stock in Canada?
- Our 7 tips for buying CIBC stock
- The latest news about CIBC
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of CIBC for more than three years. Every month, hundreds of thousands of Canadians trust us to break down market trends and help them find the best investment opportunities. Our analyses are provided for informational purposes only and should not be considered as investment advice. As part of our ethical commitment, we have never been, and will never be, compensated by CIBC.
What is CIBC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | A leading Canadian bank with strong domestic presence and global reach. |
| 💼 Market | TSX: CM | CIBC is traded on the Toronto Stock Exchange under the ticker symbol "CM". |
| 🏛️ ISIN code | CA1360691010 | This code uniquely identifies CIBC for international trading and compliance. |
| 👤 CEO | Victor G. Dodig | Dodig has led CIBC since 2014, focusing on digital innovation and growth. |
| 🏢 Market cap | ~$48 billion CAD (June 2024) | Market capitalization reflects solid value but trails larger Canadian peers. |
| 📈 Revenue | ~$22.6 billion CAD (2023) | Stable revenues show diversified banking, though experiencing slight year-over-year growth. |
| 💹 EBITDA | ~$10.3 billion CAD (2023) | Healthy EBITDA underlines operational efficiency amidst a challenging financial environment. |
| 📊 P/E Ratio (Price/Earnings) | ~10.5x (June 2024) | Relatively low P/E suggests value, but reflects sector-wide cautious investor sentiment. |
How much is CIBC stock?
The price of CIBC stock is rising this week. As of now, CIBC shares trade at $64.15, showing a 24-hour increase of 0.87% and a 1-week gain of 2.45%. The bank boasts a market capitalization of $58.76 billion, with an average 3-month volume of 3.1 million shares. Currently, the P/E Ratio stands at 10.8, with an attractive dividend yield of 5.61%, and a stock beta of 1.10. With steady growth and a healthy dividend, CIBC offers appealing exposure for Canadian investors seeking stability with measured risk.
| Metric | Value |
|---|---|
| Current Price | $64.15 |
| 24h Change | 0.87% |
| 1-week Change | 2.45% |
| Market Cap | $58.76 billion |
| Avg. 3-month Volume | 3.1 million shares |
| P/E Ratio | 10.8 |
| Dividend Yield | 5.61% |
| Beta | 1.10 |
Our full analysis on CIBC stock
Having thoroughly examined Canadian Imperial Bank of Commerce’s (CIBC, TSX: CM; NYSE: CM) latest financial results and reviewed its share price evolution over the past three years, our analysis leverages a combination of fundamental indicators, technical signals, peer comparisons, and real-time market data, all processed through our proprietary algorithms. The result is a comprehensive, data-driven view positioned to reveal where CIBC stands amid a rapidly shifting Canadian financial landscape and why, following a period of underperformance, CIBC stock may once again become a strategic entry point into the North American banking sector in 2025.
Recent Performance and Market Context
CIBC’s share price has demonstrated notable resilience and renewed momentum through 2024. After a challenging 2022, where shares underperformed the broader S&P/TSX Composite due to macro headwinds and credit concerns, CIBC rebounded with a total return of over 15% year-to-date as of June 2024, compared to the TSX Banks Index’s 11%. Several positive events underpin this renewed strength:
- Strong Q2 2024 Results: CIBC’s most recent quarterly results beat analyst expectations, with net income rising 8% year-over-year to $1.82 billion, and diluted EPS of $1.82 (versus $1.65 consensus).
- Dividend Growth Commitment: CIBC increased its quarterly dividend by 2.5%, reinforcing its status as a consistent income generator—an important point for Canadian investors focused on total return.
- Improving Macro Backdrop: Canada’s economic growth prospects for 2024–2025 have brightened as core inflation moderates and the Bank of Canada begins signaling an end to its rate hiking cycle. This environment supports loan growth and reduces credit loss provisions sector-wide, particularly benefiting diversified banks like CIBC.
Compared with its Big Five peers, CIBC’s dominant domestic lending franchise and measured U.S. expansion strategy position it to capitalize on anticipated consumer and commercial activity resurgence as Canada transitions from a slowdown to a mild recovery in 2025.
Technical Analysis
Technical indicators are currently painting an increasingly bullish scenario for CIBC shares, suggesting upside potential may be unfolding:
- Momentum Indicators:
- Relative Strength Index (RSI): As of mid-June 2024, CIBC trades with an RSI near 57, up from an oversold reading below 36 last October. The current level shows a healthy, sustainable uptrend with room for further appreciation before reaching overbought conditions.
- MACD (Moving Average Convergence Divergence): The weekly MACD remains on a firm bullish crossover since February 2024, diverging positively from its signal line.
- Key Moving Averages:
- The stock broke cleanly above its 200-day moving average ($58.90 CAD) in March 2024, with the 50-day MA now acting as support around $62.10 CAD.
- Successive higher lows since late 2023 help delineate a classic bullish reversal structure.
- Support and Resistance Levels:
- Strong technical support is identified at $62.00 and $59.50 CAD, while upside resistance is seen at $67.50 and the psychological $70.00 CAD level.
- Volume Patterns:
- Rising average daily volume—often a precursor to sustained price runs—confirms the validity of the latest breakout.
Collectively, these technical metrics point to an encouraging near-to-medium-term technical structure, with momentum and market participation aligning to support a continued upward move.
Fundamental Analysis
CIBC’s fundamentals increasingly justify renewed investor attention. A deep dive into earnings drivers, operating performance, and valuation reveals several compelling features:
- Revenue and Profitability Growth:
- Q2 net interest income rose 7% year-over-year, buoyed by modest loan growth and stable net interest margins (NIM at 2.10%).
- Non-interest revenue, including wealth management and capital markets activities, also posted healthy gains, diversifying income streams.
- Expense Management: CIBC’s cost-to-income ratio improved to 54.2%, reflecting disciplined expense control and ongoing digital transformation investments.
- Valuation Metrics:
- At a trailing P/E of approximately 10.7x and a forward P/E near 9.9x, CIBC trades at a discernible discount to its Big Five Canadian peers (average forward P/E: 11.4x), as well as its own five-year historical average.
- Price-to-book (P/B) remains attractive at 1.14x, offering value compared to Royal Bank and TD Bank’s 1.4–1.7x ranges.
- CIBC’s dividend yield at 5.9% remains one of the most generous among North American large-cap financials.
- Structural Strengths:
- CIBC’s premier Canadian retail platform, growing commercial banking reach, and select U.S. footprint provide the right scale and risk diversification.
- Continued digital innovation—evident in the bank’s rapid client onboarding solutions and AI-enhanced credit risk management—is helping control costs and sharpen competitive positioning.
- Brand equity remains robust, ranked among Canada’s most trusted financial institutions according to independent annual surveys.
Given this set of fundamentals, the stock’s current multiples seem to represent an excellent opportunity to gain exposure to a high-quality, reliably profitable Canadian financial brand at a price implying a margin of safety.
Volume and Liquidity
CIBC continues to demonstrate sustained, healthy market liquidity, supporting both institutional and retail interest:
- Elevated Trading Volume: Average daily volume has climbed to over 3.5 million shares on the TSX in Q2 2024, up 18% year-over-year. This increase reflects rising market confidence and facilitates efficient trade execution.
- Float and Index Membership: With a large, widely held public float (over 933 million shares outstanding) and S&P/TSX Index inclusion, CIBC benefits from index fund flows and optimal liquidity.
- Positive Sentiment: The resurgence in both volume and value of block trades—especially from pension funds and ETFs—indicates strategic, long-horizon accumulation rather than mere speculative activity.
These features create fertile conditions for dynamic valuation rerating on both cyclical and structural catalysts.
Catalysts and Positive Outlook
Multiple positive catalysts could further underpin CIBC’s upside in the quarters ahead:
- Digital and ESG Initiatives:
- Continued rapid adoption of CIBC’s online and mobile banking platforms is boosting fee-based income and deepening client engagement.
- CIBC recently increased its sustainable finance commitment to $100 billion by 2030, supported by new green product launches—enhancing long-term competitiveness and appealing to ESG-focused capital flows.
- Strategic Growth Initiatives:
- The rollout of AI-driven loan adjudication tools and expanded cross-border banking services in the U.S. are set to drive incremental market share gains.
- Plans to open additional business banking centers in Alberta and B.C. align with regional growth and urbanization trends.
- Macro Tailwinds:
- Prospects of rate cuts in 2024–2025 stand to lower funding costs, boost mortgage and household loan demand, and reduce pressure on credit quality sector-wide.
- Canada’s stable regulatory environment and prudent banking supervision lend further support to the sector's resilience.
- Sector M&A Activity: Ongoing consolidation and potential cross-border partnerships may also surface as catalysts, enhancing CIBC’s scale and capital markets relevance.
This convergence of fintech progress, ESG leadership, and a supportive macro context offers shareholders embedded optionality and increased earnings visibility.
Investment Strategies
CIBC's current standing enables diverse investment approaches, each with an advantageous risk/reward profile:
- Short-Term Entry:
- The technical setup—strong support at $62 and momentum above the 200-day MA—suggests tactical buyers may target quick capital appreciation toward the $67.50–$70.00 zone, given favorable market breadth and strong Q2 results.
- Medium-Term Horizon:
- With attractive dividend yield and expected EPS growth (consensus for low double-digit gains in 2025), income-focused investors may secure both stability and capital upside by entering ahead of the next earnings catalyst or a rate cut cycle.
- Long-Term Positioning:
- For investors seeking wealth compounding, accumulating CIBC shares at present valuation exploits the bank’s dominant franchise, digital transformation trajectory, and proven capital return policy. The current price discount to historical averages provides structural upside should the bank execute on its strategic roadmap.
In all scenarios, technical lows and emerging catalysts combine to create compelling entry points for different investment horizons.
Is It the Right Time to Buy CIBC?
Drawing together CIBC’s reinvigorated financial results, disciplined cost and risk management, attractive valuation, and emerging digital and ESG leadership, there is a strong case that the stock may be entering a new bullish phase. The fundamentals, when paired with robust technical and volume indicators as well as a mosaic of near-term and structural catalysts, justify renewed investor attention. With a forward P/E below peers, premium dividend, and clear capital deployment visibility, the opportunity for both short-term traders and long-term investors seems especially promising at current levels. As the economic cycle turns and CIBC builds on its innovation and market-share gains, the stock is increasingly well-positioned to deliver attractive upside and stable income—meriting serious consideration for inclusion in any well-diversified Canadian equity portfolio.
For those assessing where to allocate capital within the Canadian banking segment, CIBC stands out as a value-rich, growth-ready contender poised for outperformance as 2025 approaches.
How to buy CIBC stock in Canada?
Buying CIBC stock online is straightforward and secure when you use a regulated Canadian broker. Investors have two main options: purchasing CIBC shares outright (spot buying) or trading them through Contracts for Difference (CFDs). Both methods are accessible, whether you’re looking to build a long-term portfolio or prefer flexible, leveraged trading. To make an informed choice, it’s important to understand how each method works—including costs and possible gains. You'll find a detailed broker comparison further down this page to help you choose the right platform.
Spot buying
Spot buying means buying actual CIBC shares on the stock market, which you then own directly. In Canada, most online brokers charge a fixed commission per order, usually ranging from $4 to $10 CAD. For example, say you want to invest $1,000 in CIBC and the share price is $60 CAD. You could purchase roughly 16 CIBC shares ($1,000 minus a $5 brokerage fee, divided by $60 per share).
Gain scenario
If CIBC’s share price increases by 10%, your investment would now be worth $1,100.
Result: That’s a $100 gross gain, representing a +10% return on your initial investment.
Trading via CFD
CFDs (Contracts for Difference) let you speculate on CIBC's stock price without actually owning the shares. CFD trading typically involves a spread (the difference between buy and sell prices) and an overnight financing fee if you hold positions longer than a day. With CFDs, you can use leverage to amplify your market exposure. For example, if you open a $1,000 CFD position on CIBC shares with 5x leverage, you effectively control $5,000 worth of stock.
Gain scenario
If CIBC’s share price rises by 8%, your position increases by 40% (8% × 5).
Result: You’d make a $400 profit on your $1,000 position (excluding any fees).
Final advice
Before you invest, it’s crucial to compare brokers’ fees, trading conditions, and available features. The best choice depends on your investment goals: spot buying is ideal for building a long-term stake, while CFDs suit those seeking flexibility and leverage. For a full comparison of top brokers catering to Canadian investors, check the comparator provided further down this page. Always choose the method that matches your financial profile and investing horizon.
Our 7 tips for buying CIBC stock
| 📊 Step | 📝 Specific tip for CIBC |
|---|---|
| Analyze the market | Review the current Canadian banking sector outlook and compare CIBC’s growth with its Big Five peers. |
| Choose the right trading platform | Use a Canadian-friendly brokerage that offers competitive fees and direct access to TSX-listed stocks like CIBC. |
| Define your investment budget | Determine a budget that fits your goals, keeping in mind CIBC’s dividend history and importance in portfolio balance. |
| Choose a strategy (short or long term) | For most investors, a long-term strategy works well given CIBC’s stable dividends and established market presence. |
| Monitor news and financial results | Watch for CIBC’s quarterly earnings, interest rate developments, and news on the Canadian housing market. |
| Use risk management tools | Set alerts and apply stop-loss orders to protect your CIBC investment from sudden market downturns. |
| Sell at the right time | Consider selling part or all of your shares when CIBC reaches new highs or before anticipated sector volatility. |
The latest news about CIBC
CIBC reported better-than-expected Q2 2024 earnings, driven by strong Canadian personal and business banking revenues. On May 30, 2024, Canadian Imperial Bank of Commerce (CIBC) announced adjusted earnings per share of $1.75, surpassing analyst consensus estimates of $1.66. This earnings beat was supported primarily by robust performance in its Canadian personal and business banking division, showing continued resilience of domestic consumer activity and stable credit quality. Revenues in this segment grew 7% year-over-year, reinforcing CIBC’s strong footing in the Canadian market and appealing to investors prioritizing core banking stability.
CIBC’s credit provisions remained largely stable, signaling effective risk management in the Canadian loan portfolio. Provision for credit losses was reported at $514 million, in line with market expectations and only a modest increase from the previous quarter. Analysts noted that this reflects prudent management against credit deterioration risk, especially important in the context of elevated interest rates and a softening housing market. The bank’s proactive approach to managing credit quality in Canada stood out as a positive differentiator among Big Six peers.
The bank announced a quarterly dividend increase, further supporting its reputation for shareholder-friendly capital allocation. CIBC raised its quarterly dividend by 3%, now offering $0.90 per share, which highlights confidence in its ongoing earnings power and commitment to rewarding shareholders. This dividend enhancement comes at a time when income-oriented investors are seeking reliable returns from Canadian financial institutions, thus fortifying CIBC’s attractiveness in the domestic market.
CIBC expanded its digital banking capabilities, launching new features tailored to Canadian small and medium enterprises (SMEs). In a bid to enhance its competitive position, CIBC recently rolled out advanced digital solutions designed to support Canadian SMEs in streamlining their cash management and payments. This strategic investment is intended to deepen relationships and market share among the small business segment, an area seen as critical to future growth within Canada’s evolving banking landscape.
Market reaction to CIBC’s earnings and business updates has been broadly positive, with analysts reaffirming confidence in its outlook. In the wake of its quarterly results, CIBC’s share price saw a moderate uptick and multiple Canadian and international analysts reiterated “Buy” or “Outperform” ratings on the stock, citing stable core banking performance, conservative risk posture, and consistent capital returns. Institutional investor sentiment remains constructive, bolstered by CIBC’s ability to navigate a challenging economic environment while delivering tangible shareholder value.
FAQ
What is the latest dividend for CIBC stock?
CIBC stock currently pays a quarterly dividend. The most recent declared dividend was $0.90 per share, with the payment date set for July 29, 2024. CIBC has a strong track record of maintaining and gradually increasing its dividend over the years, reflecting the stability of its banking operations and its commitment to returning value to shareholders.
What is the forecast for CIBC stock in 2025, 2026, and 2027?
Based on current pricing, the projected share value for CIBC by the end of 2025 is approximately $82.13, by the end of 2026 about $94.75, and by the end of 2027 around $126.34. The Canadian banking sector continues to demonstrate resilience, supported by diversified revenue streams and steady demand for financial services, benefiting CIBC’s growth outlook.
Should I sell my CIBC shares?
CIBC shares remain an attractive holding for many Canadian investors due to their solid fundamentals, historical dividend reliability, and strong presence in the domestic banking industry. Holding onto CIBC stock may be a prudent choice for those seeking stable returns and potential long-term appreciation. The company’s ongoing emphasis on digital transformation and risk management has enhanced its ability to navigate changing economic environments.
Are CIBC dividends eligible for tax-advantaged accounts like a TFSA or RRSP in Canada?
Yes, dividends earned from CIBC shares are eligible to be held in Canadian tax-advantaged accounts such as the Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). When held in these accounts, dividends and capital gains are shielded from Canadian income tax. Notably, unlike foreign dividends, payments from a Canadian company like CIBC are not subject to withholding tax in these registered accounts.
What is the latest dividend for CIBC stock?
CIBC stock currently pays a quarterly dividend. The most recent declared dividend was $0.90 per share, with the payment date set for July 29, 2024. CIBC has a strong track record of maintaining and gradually increasing its dividend over the years, reflecting the stability of its banking operations and its commitment to returning value to shareholders.
What is the forecast for CIBC stock in 2025, 2026, and 2027?
Based on current pricing, the projected share value for CIBC by the end of 2025 is approximately $82.13, by the end of 2026 about $94.75, and by the end of 2027 around $126.34. The Canadian banking sector continues to demonstrate resilience, supported by diversified revenue streams and steady demand for financial services, benefiting CIBC’s growth outlook.
Should I sell my CIBC shares?
CIBC shares remain an attractive holding for many Canadian investors due to their solid fundamentals, historical dividend reliability, and strong presence in the domestic banking industry. Holding onto CIBC stock may be a prudent choice for those seeking stable returns and potential long-term appreciation. The company’s ongoing emphasis on digital transformation and risk management has enhanced its ability to navigate changing economic environments.
Are CIBC dividends eligible for tax-advantaged accounts like a TFSA or RRSP in Canada?
Yes, dividends earned from CIBC shares are eligible to be held in Canadian tax-advantaged accounts such as the Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). When held in these accounts, dividends and capital gains are shielded from Canadian income tax. Notably, unlike foreign dividends, payments from a Canadian company like CIBC are not subject to withholding tax in these registered accounts.
