Royal Bank of Canada (NYSE: RY – Get a rating) (TSE:RY) saw a surge in short-term interest in June. As of June 30, there was short interest totaling 12,310,000 shares, an increase of 82.9% from the total of 6,730,000 shares as of June 15. Based on an average trading volume of 980,300 shares, the short-term interest rate ratio is currently 12.6 days. About 0.9% of the stock’s shares are sold short.
Royal Bank of Canada Price Performance
Shares of NYSE RY were up $0.03 at midday Friday, hitting $91.12. The company had a trading volume of 1,452,020 shares, compared to an average volume of 869,432. The company has a quick ratio of 0.88, a current ratio of 0.88 and a leverage ratio of 0.11 . Royal Bank of Canada has a 12-month low of $90.93 and a 12-month high of $119.41. The company has a 50-day simple moving average of $98.89 and a two-hundred-day simple moving average of $106.36. The company has a market cap of $127.82 billion, a price-to-earnings ratio of 9.97, a growth price-to-earnings ratio of 2.00, and a beta of 0.90.
Royal Bank of Canada (NYSE: RY – Get a rating) (TSE:RY) last released its results on Thursday, May 26. The financial services provider reported earnings per share of $2.36 for the quarter, beating the consensus estimate of $2.08 by $0.28. Royal Bank of Canada posted a net margin of 28.54% and a return on equity of 17.97%. The company had revenue of $8.86 billion in the quarter. Equity research analysts expect Royal Bank of Canada to post earnings per share of 8.88 for the current year.
Royal Bank of Canada increases its dividend
The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 24. Investors of record on Tuesday, July 26 will receive a dividend of $0.995. This represents a dividend of $3.98 on an annualized basis and a yield of 4.37%. This is an increase from Royal Bank of Canada’s previous quarterly dividend of $0.94. The ex-date of this dividend is Monday, July 25. Royal Bank of Canada’s payout ratio is currently 42.01%.
Analysts set new price targets
Several equity analysts weighed in on the stock. BMO Capital Markets lowered its target price on Royal Bank of Canada shares from C$142.00 to C$140.00 in a report released Friday, May 27. Argus raised its price target on Royal Bank of Canada shares from $121.00 to $125.00 and gave the stock a “buy” rating in a Monday, June 6 report. Scotiabank lowered its price target on Royal Bank of Canada shares from C$150.00 to C$147.00 in a report released Friday, May 20. National Bank Financial raised its price target on Royal Bank of Canada shares from C$147.00 to C$148.00 in a report released Friday, May 27. Finally, Stifel Nicolaus cut his price target on Royal Bank of Canada shares from C$152.00 to C$150.00 in a Friday, April 8 report. One equity research analyst gave the stock a sell rating, five issued a hold rating and ten gave the company a buy rating. According to data from MarketBeat.com, Royal Bank of Canada currently has a “moderate buy” consensus rating and an average target price of $143.84.
Institutional entries and exits
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in Royal Bank of Canada shares by 3.2% during the first quarter. Vanguard Group Inc. now owns 48,531,311 shares of the financial services provider worth $5,351,548,000 after acquiring an additional 1,503,485 shares in the last quarter. Wellington Management Group LLP increased its holdings in Royal Bank of Canada by 265.8% in the first quarter. Wellington Management Group LLP now owns 19,835,260 shares of the financial services provider worth $2,185,770,000 after purchasing an additional 14,412,851 shares during the period. 1832 Asset Management LP increased its stake in Royal Bank of Canada by 3.4% in the first quarter. 1832 Asset Management LP now owns 18,380,046 shares of the financial services provider valued at $1,998,605,000 after acquiring an additional 608,072 shares in the last quarter. Norges Bank acquired a new stake in Royal Bank of Canada in Q4 valued at approximately $1,635,969,000. Finally, the Toronto-Dominion Bank increased its stake in the Royal Bank of Canada by 1.3% in the 1st quarter. The Toronto Dominion Bank now owns 13,450,589 shares of the financial services provider valued at $1,485,878,000 after acquiring 174,908 additional shares in the last quarter. 41.50% of the shares are held by institutional investors and hedge funds.
Profile of Royal Bank of Canada
Royal Bank of Canada is a globally diversified financial services company. The Company’s Personal and Commercial Banking segment offers checking and savings accounts, home equity financing, personal loans, private banking, indirect loans, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, commercial products and services to small and medium commercial enterprises.
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