Royal Bank of Canada (TSE:RY) Hits New 12-Month High – What’s Next?

Royal Bank of Canada (TSE:RY) (NYSE:RY)’s share price hit a new 52-week high during mid-day trading on Monday . The company traded as high as C$265.10 and last traded at C$264.86, with a volume of 110139 shares traded. The stock had previously closed at C$260.59.

Key Headlines Impacting Royal Bank of Canada

Here are the key news stories impacting Royal Bank of Canada this week:

• Positive Sentiment: Several analysts recently raised their price targets on Royal Bank of Canada, including Canaccord Genuity to C$270 and Desjardins to C$262, while the consensus remains “Moderate Buy.”
• Positive Sentiment: Royal Bank of Canada also recently paid a quarterly dividend of C$1.64 per share, reinforcing its appeal for income-focused investors.
• Neutral Sentiment: The bank reported strong recent quarterly results, with C$4.08 EPS, C$17.96 billion in revenue, and a 15.37% return on equity, which supports the stock’s elevated valuation.
• Negative Sentiment: Multiple insiders and a director sold shares, including Director David Ian McKay and insiders Bruce Washington Ross, Katherine Gibson, Jennifer Kristine Publicover, and Graeme Ashley Hepworth, which can weigh on sentiment because it may signal limited short-term upside. Director David Ian McKay Sells 23,089 Shares of Stock

Analysts Set New Price Targets

A number of brokerages have recently commented on RY. Canaccord Genuity Group upped their price target on Royal Bank of Canada from C$260.00 to C$270.00 and gave the stock a “buy” rating in a report on Wednesday, May 20th. Jefferies Financial Group increased their price objective on Royal Bank of Canada from C$226.00 to C$232.00 in a research note on Wednesday, May 20th. Scotiabank increased their price objective on Royal Bank of Canada from C$247.00 to C$252.00 and gave the stock a “sector outperform” rating in a research note on Monday, May 4th. National Bank Financial increased their target price on Royal Bank of Canada from C$257.00 to C$271.00 and gave the stock an “outperform” rating in a report on Friday, May 15th. Finally, Barclays increased their target price on Royal Bank of Canada from C$244.00 to C$245.00 in a report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Royal Bank of Canada currently has a consensus rating of “Moderate Buy” and an average price target of C$253.19.

Royal Bank of Canada Stock Down 0.7%

The firm has a fifty day moving average of C$238.95 and a 200-day moving average of C$230.97. The firm has a market cap of C$364.77 billion, a P/E ratio of 18.02, a PEG ratio of 3.42 and a beta of 1.14.

Royal Bank of Canada (TSE:RY) (NYSE:RY) last released its earnings results on Thursday, February 26th. The financial services provider reported C$4.08 earnings per share for the quarter. Royal Bank of Canada had a return on equity of 15.37% and a net margin of 20.88%.The firm had revenue of C$17.96 billion for the quarter. Sell-side analysts anticipate that Royal Bank of Canada will post 12.3454675 EPS for the current year.

Royal Bank of Canada Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 22nd were paid a $1.64 dividend. The ex-dividend date of this dividend was Thursday, April 23rd. This represents a $6.56 annualized dividend and a yield of 2.5%. Royal Bank of Canada’s dividend payout ratio is presently 42.58%.

Insider Activity at Royal Bank of Canada

In other news, insider Bruce Washington Ross sold 3,657 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of C$261.83, for a total transaction of C$957,512.31. Following the sale, the insider owned 235 shares of the company’s stock, valued at C$61,530.05. This trade represents a 93.96% decrease in their ownership of the stock. Also, insider Jennifer Kristine Publicover sold 439 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of C$261.83, for a total value of C$114,943.37. Following the sale, the insider directly owned 152 shares in the company, valued at approximately C$39,798.16. This represents a 74.28% decrease in their position. Insiders have sold a total of 58,220 shares of company stock valued at $14,690,362 over the last 90 days.

About Royal Bank of Canada

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 101,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S.