Royal Bank of Canada (NYSE:RY) Releases Earnings Results, Beats Expectations By $0.23 EPS

Royal Bank of Canada (NYSE:RY) (TSE:RY) released its earnings results on Wednesday. The financial services provider reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.15 by $0.23, reports. The firm had revenue of $10.68 billion during the quarter, compared to analyst estimates of $10.40 billion. Royal Bank of Canada had a return on equity of 14.87% and a net margin of 12.12%.

Royal Bank of Canada Stock Performance

NYSE RY opened at $119.20 on Friday. Royal Bank of Canada has a 52-week low of $77.90 and a 52-week high of $120.68. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.12. The business’s 50-day moving average price is $109.92 and its 200 day moving average price is $104.19. The firm has a market cap of $168.68 billion, a P/E ratio of 14.79, a P/E/G ratio of 1.75 and a beta of 0.86.

Royal Bank of Canada Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 22nd. Stockholders of record on Thursday, October 24th will be paid a dividend of $1.028 per share. The ex-dividend date of this dividend is Thursday, October 24th. This represents a $4.11 annualized dividend and a dividend yield of 3.45%. Royal Bank of Canada’s dividend payout ratio (DPR) is 51.49%.

Analysts Set New Price Targets

RY has been the subject of several analyst reports. UBS Group began coverage on shares of Royal Bank of Canada in a report on Tuesday, July 2nd. They set a “buy” rating for the company. BMO Capital Markets raised their price target on Royal Bank of Canada from $151.00 to $165.00 and gave the company an “outperform” rating in a research note on Thursday. Scotiabank upgraded Royal Bank of Canada from a “hold” rating to a “strong-buy” rating in a report on Friday, May 17th. Jefferies Financial Group raised Royal Bank of Canada from a “hold” rating to a “buy” rating in a report on Monday, May 13th. Finally, Argus boosted their price objective on shares of Royal Bank of Canada from $115.00 to $120.00 and gave the stock a “buy” rating in a research report on Thursday, June 6th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Royal Bank of Canada presently has a consensus rating of “Moderate Buy” and a consensus target price of $142.50.

Institutional Investors Weigh In On Royal Bank of Canada

Institutional investors have recently added to or reduced their stakes in the business. Mount Yale Investment Advisors LLC grew its holdings in Royal Bank of Canada by 1.6% during the 2nd quarter. Mount Yale Investment Advisors LLC now owns 5,823 shares of the financial services provider’s stock valued at $619,000 after buying an additional 92 shares during the last quarter. Shell Asset Management Co. increased its position in Royal Bank of Canada by 3.8% during the 1st quarter. Shell Asset Management Co. now owns 2,711 shares of the financial services provider’s stock worth $274,000 after purchasing an additional 100 shares in the last quarter. HB Wealth Management LLC raised its stake in Royal Bank of Canada by 1.9% in the 2nd quarter. HB Wealth Management LLC now owns 5,287 shares of the financial services provider’s stock valued at $562,000 after purchasing an additional 100 shares during the last quarter. Muirfield Wealth Advisors LLC lifted its holdings in Royal Bank of Canada by 0.6% in the 2nd quarter. Muirfield Wealth Advisors LLC now owns 16,437 shares of the financial services provider’s stock valued at $1,749,000 after purchasing an additional 101 shares in the last quarter. Finally, Sollinda Capital Management LLC boosted its stake in shares of Royal Bank of Canada by 2.8% during the 2nd quarter. Sollinda Capital Management LLC now owns 3,674 shares of the financial services provider’s stock worth $391,000 after purchasing an additional 101 shares during the last quarter. Hedge funds and other institutional investors own 45.31% of the company’s stock.

About Royal Bank of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses.