Desjardins Lifts Earnings Estimates for Royal Bank of Canada

Key Points

• Desjardins analysts have raised their FY2025 earnings per share estimate for Royal Bank of Canada to $14.15, significantly higher than the previous estimate of $13.25, maintaining a "Buy" rating with a target price of $214.00.
• The Royal Bank of Canada recently increased its quarterly dividend to $1.54 per share, up from $1.48, reflecting a 3.1% dividend yield.
• Insider trading activity shows significant sell-offs, with a total of 42,026 shares sold by insiders valued at approximately $7.5 million over the last three months.

Royal Bank of Canada (TSE:RY - Free Report) NYSE: RY - Stock analysts at Desjardins increased their FY2025 earnings per share estimates for shares of Royal Bank of Canada in a research report issued to clients and investors on Wednesday, August 27th. Desjardins analyst D. Young now forecasts that the financial services provider will post earnings of $14.15 per share for the year, up from their prior estimate of $13.25. Desjardins has a "Buy" rating and a $214.00 price objective on the stock. The consensus estimate for Royal Bank of Canada's current full-year earnings is $12.35 per share. Desjardins also issued estimates for Royal Bank of Canada's Q4 2025 earnings at $3.56 EPS.

Several other analysts have also weighed in on RY. CIBC upped their price objective on Royal Bank of Canada from C$195.00 to C$208.00 and gave the company an "outperform" rating in a report on Thursday, August 28th. Jefferies Financial Group upped their price objective on Royal Bank of Canada from C$198.00 to C$207.00 in a report on Wednesday, August 13th. Barclays upped their price objective on Royal Bank of Canada from C$190.00 to C$203.00 in a report on Thursday, August 28th. TD Securities upped their price objective on Royal Bank of Canada from C$191.00 to C$208.00 and gave the company a "hold" rating in a report on Thursday, August 28th. Finally, National Bank Financial lowered Royal Bank of Canada from an "outperform" rating to a "sector perform" rating in a report on Thursday, May 29th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Royal Bank of Canada currently has an average rating of "Moderate Buy" and a consensus target price of C$206.00.

Royal Bank of Canada Stock Up 0.3%

RY stock traded up C$0.55 during trading on Monday, reaching C$201.52. 544,040 shares of the company's stock were exchanged, compared to its average volume of 4,338,164. Royal Bank of Canada has a 1-year low of C$151.25 and a 1-year high of C$204.60. The firm has a market cap of C$284.20 billion, a PE ratio of 15.24, a P/E/G ratio of 3.42 and a beta of 1.12. The company's fifty day moving average price is C$184.50 and its 200-day moving average price is C$173.32.

Royal Bank of Canada Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 22nd were given a dividend of $1.54 per share. This is a boost from Royal Bank of Canada's previous quarterly dividend of $1.48. The ex-dividend date was Thursday, July 24th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 3.1%. Royal Bank of Canada's payout ratio is currently 44.78%.

Insiders Place Their Bets

In other Royal Bank of Canada news, Director David Ian Mckay sold 20,304 shares of Royal Bank of Canada stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of C$182.30, for a total transaction of C$3,701,453.72. Also, Senior Officer Jennifer Kristine Publicover sold 401 shares of Royal Bank of Canada stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of C$182.30, for a total transaction of C$73,102.98. Following the transaction, the insider owned 152 shares in the company, valued at approximately C$27,709.86. The trade was a 72.51% decrease in their ownership of the stock. In the last three months, insiders have sold 42,026 shares of company stock worth $7,517,844.

About Royal Bank of Canada

Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the U.S.