Erste Group Bank Has Bearish Outlook for RY FY2026 Earnings

Key Points

• Erste Group Bank cut Royal Bank of Canada’s FY2026 EPS estimate to $11.87 from $12.83, slightly above the $11.83 consensus, and projects FY2027 EPS of $12.92.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $225, despite the earnings-estimate reduction.
• RBC recently beat quarterly expectations with $3.07 EPS versus $2.89 forecast and declared a quarterly dividend of $1.76, equating to a 3.4% annualized yield.

Royal Bank Of Canada (NYSE:RY - Free Report) TSE: RY - Stock analysts at Erste Group Bank reduced their FY2026 earnings per share estimates for shares of Royal Bank Of Canada in a research note issued on Tuesday, September 8th. Erste Group Bank analyst H. Engel now forecasts that the financial services provider will post earnings of $11.87 per share for the year, down from their previous estimate of $12.83. The consensus estimate for Royal Bank Of Canada's current full-year earnings is $11.83 per share. Erste Group Bank also issued estimates for Royal Bank Of Canada's FY2027 earnings at $12.92 EPS.

Other analysts also recently issued reports about the stock. Scotiabank reissued an "outperform" rating on shares of Royal Bank Of Canada in a research note on Friday, August 28th. Barclays reiterated an "overweight" rating on shares of Royal Bank Of Canada in a report on Friday, August 21st. TD Securities reissued a "buy" rating on shares of Royal Bank Of Canada in a research report on Wednesday, August 12th. Keefe, Bruyette & Woods initiated coverage on Royal Bank Of Canada in a research note on Friday, August 21st. They issued a "market perform" rating for the company. Finally, Weiss Ratings upgraded Royal Bank Of Canada from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $225.00.

Royal Bank Of Canada Stock Down 0.1%

Shares of NYSE:RY opened at $205.71 on Monday. The firm has a 50 day simple moving average of $209.70 and a 200 day simple moving average of $190.59. Royal Bank Of Canada has a 52 week low of $143.13 and a 52 week high of $218.57. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.81 and a current ratio of 0.81. The company has a market cap of $285.24 billion, a PE ratio of 18.00, a price-to-earnings-growth ratio of 1.85 and a beta of 0.79.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY last announced its earnings results on Thursday, August 27th. The financial services provider reported $3.07 EPS for the quarter, topping the consensus estimate of $2.89 by $0.18. The company had revenue of $13.22 billion during the quarter, compared to analysts' expectations of $12.98 billion. Royal Bank Of Canada had a net margin of 16.17% and a return on equity of 17.79%.

Institutional Trading of Royal Bank Of Canada

Hedge funds and other institutional investors have recently modified their holdings of the company. Echo45 Advisors LLC raised its stake in shares of Royal Bank Of Canada by 5.0% during the first quarter. Echo45 Advisors LLC now owns 1,258 shares of the financial services provider's stock worth $204,000 after acquiring an additional 60 shares in the last quarter. Key Financial Inc boosted its stake in shares of Royal Bank Of Canada by 63.0% in the 1st quarter. Key Financial Inc now owns 163 shares of the financial services provider's stock valued at $26,000 after purchasing an additional 63 shares in the last quarter. Apella Capital LLC grew its holdings in shares of Royal Bank Of Canada by 3.1% during the 2nd quarter. Apella Capital LLC now owns 2,155 shares of the financial services provider's stock valued at $451,000 after purchasing an additional 64 shares during the last quarter. Alta Capital Management LLC grew its holdings in shares of Royal Bank Of Canada by 4.0% during the 4th quarter. Alta Capital Management LLC now owns 1,686 shares of the financial services provider's stock valued at $287,000 after purchasing an additional 65 shares during the last quarter. Finally, Cornerstone Financial Management LLC raised its position in Royal Bank Of Canada by 45.2% in the 2nd quarter. Cornerstone Financial Management LLC now owns 212 shares of the financial services provider's stock worth $44,000 after purchasing an additional 66 shares during the period. 45.31% of the stock is currently owned by hedge funds and other institutional investors.

Royal Bank Of Canada Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Monday, October 26th will be paid a $1.76 dividend. The ex-dividend date of this dividend is Monday, October 26th. This represents a $7.04 dividend on an annualized basis and a dividend yield of 3.4%. Royal Bank Of Canada's dividend payout ratio is 43.39%.

About Royal Bank Of Canada

Royal Bank of Canada (RBC) is a diversified financial services company headquartered in Toronto, Canada. Founded in 1864, it is one of Canada's largest banks and serves individuals, businesses, institutions and governments.

RBC provides personal and commercial banking products, including deposit accounts, mortgages, consumer and business loans, credit cards and payment services. Through its wealth management operations, the company offers investment advice, brokerage, asset management, trust and estate services, and private banking.

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