CIBC Shares Soar 3.61% in Four Days, Reach 2024 High

Canadian Imperial Bank of Commerce (CM) shares rose 0.43% today, marking the fourth consecutive day of gains, with a total increase of 3.61% over the past four days. The share price reached its highest level since December 2024, with an intraday gain of 0.64%.

The strategy of buying CM shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 6.50% annualized return and a 28.76% total return as of the latest data point. However, the strategy underperformed the broader market, as evidenced by the 15.90% annualized return and 65.20% total return of the Canadian Banks industry over the same period. This suggests that while the strategy provided some growth, it may not have fully capitalized on the broader market's performance. Investors should consider these results alongside other factors, such as market conditions and their own risk tolerance, when evaluating this strategy.

Analysts have been actively revising their price targets for CIBC. BofA analyst Ebrahim Poonawala increased the price target to C$100, maintaining a Buy rating. This optimistic outlook suggests strong confidence in the bank's future performance. Conversely, Canaccord Genuity Group lowered their price target from C$93.00 to C$92.00, indicating a more cautious stance. These divergent views reflect the varying perspectives within the analyst community regarding CIBC's prospects.

In addition to price target changes, analyst ratings have also played a role in influencing CIBC's stock price. Scotiabank affirmed its rating on Canadian Imperial Bank, maintaining it at "Sector Outperform." This rating indicates continued confidence in the bank's performance and its ability to outperform its peers in the sector. Such endorsements from reputable financial institutions can bolster investor sentiment and contribute to positive stock price movements.