Desjardins Issues Optimistic Forecast for TSE:RY Earnings

Key Points

• Desjardins has raised its FY2025 earnings per share estimate for the Royal Bank of Canada from $13.05 to $13.25, maintaining a "Buy" rating with a target price of $193.00.
• The Royal Bank of Canada announced an increase in its quarterly dividend from $1.48 to $1.54 per share, reflecting an annualized dividend yield of 3.3%.
• Analyst ratings for the bank remain positive, with two ratings as hold, five as buy, and three as strong buy, and an average price target set at C$188.92.

Royal Bank of Canada (TSE:RY - Free Report) NYSE: RY - Research analysts at Desjardins raised their FY2025 earnings per share estimates for Royal Bank of Canada in a research report issued on Tuesday, August 12th. Desjardins analyst D. Young now anticipates that the financial services provider will post earnings of $13.25 per share for the year, up from their previous estimate of $13.05. Desjardins currently has a "Buy" rating and a $193.00 target price 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 FY2026 earnings at $14.30 EPS.

Other analysts have also recently issued reports about the company. UBS Group reduced their price target on Royal Bank of Canada from C$198.00 to C$196.00 in a report on Thursday, May 22nd. Barclays lifted their price objective on Royal Bank of Canada from C$180.00 to C$182.00 and gave the stock an "overweight" rating in a research note on Monday, June 9th. Scotiabank raised Royal Bank of Canada to a "strong-buy" rating in a research note on Thursday, May 15th. Canaccord Genuity Group set a C$194.00 price objective on Royal Bank of Canada and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Finally, CIBC lifted their price objective on Royal Bank of Canada from C$182.00 to C$183.00 and gave the stock an "outperform" rating in a research note on Thursday, June 5th. Two investment analysts have rated the stock with a hold rating, five have assigned a buy rating and three have given a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of C$188.92.

Royal Bank of Canada Trading Up 0.7%

TSE:RY opened at C$187.03 on Thursday. The stock has a market cap of C$264.65 billion, a P/E ratio of 16.30, a price-to-earnings-growth ratio of 3.42 and a beta of 0.84. The stock's 50-day moving average is C$178.88 and its 200-day moving average is C$171.12. Royal Bank of Canada has a 1-year low of C$149.99 and a 1-year high of C$187.29.

Insider Activity

In other news, Senior Officer Graeme Ashley Hepworth sold 308 shares of the business's 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$56,148.92. Also, Senior Officer Jennifer Kristine Publicover sold 401 shares of the business's 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 value of C$73,102.98. Following the sale, the insider owned 152 shares of the company's stock, valued at approximately C$27,709.86. This represents a 72.51% decrease in their position. Insiders sold a total of 63,039 shares of company stock worth $11,175,413 over the last quarter.

Royal Bank of Canada Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 22nd will be issued a dividend of $1.54 per share. This is a positive change from Royal Bank of Canada's previous quarterly dividend of $1.48. This represents a $6.16 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Thursday, July 24th. Royal Bank of Canada's dividend payout ratio is presently 49.49%.

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.

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