TSE:RY FY2026 EPS Forecast Reduced by Erste Group Bank

Key Points

• Erste Group Bank lowered Royal Bank of Canada’s FY2026 EPS forecast to $16.37 from $17.84, while forecasting FY2027 EPS of $17.82. The revised FY2026 estimate remains above the broader consensus of $12.35 per share.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of C$292.86; recent firms have generally raised their targets.
• Royal Bank of Canada increased its quarterly dividend to $1.76 per share, implying a 2.5% annualized yield, while insiders have sold approximately $84.2 million of stock over the past three months.

Royal Bank of Canada (TSE:RY - Free Report) NYSE: RY - Equities research analysts at Erste Group Bank decreased their FY2026 earnings per share (EPS) estimates for Royal Bank of Canada in a research report issued to clients and investors on Tuesday, September 8th. Erste Group Bank analyst H. Engel now forecasts that the financial services provider will post earnings per share of $16.37 for the year, down from their previous forecast of $17.84. The consensus estimate for Royal Bank of Canada's current full-year earnings is $12.35 per share. Erste Group Bank also issued estimates for Royal Bank of Canada's FY2027 earnings at $17.82 EPS.

Other analysts also recently issued reports about the stock. Keefe, Bruyette & Woods lifted their price objective on shares of Royal Bank of Canada from C$316.00 to C$324.00 in a research report on Monday, August 31st. TD decreased their target price on shares of Royal Bank of Canada from C$307.00 to C$306.00 and set a "buy" rating for the company in a research report on Friday, August 28th. Barclays raised their price target on shares of Royal Bank of Canada from C$260.00 to C$300.00 in a research note on Friday, August 21st. Scotiabank lifted their price target on Royal Bank of Canada from C$275.00 to C$280.00 and gave the company a "sector outperform" rating in a report on Tuesday, June 16th. Finally, Canaccord Genuity Group boosted their price objective on Royal Bank of Canada from C$310.00 to C$318.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of C$292.86.

Royal Bank of Canada Stock Performance

Shares of RY opened at C$285.20 on Monday. The firm has a fifty day moving average of C$292.97 and a 200-day moving average of C$264.69. The company has a market cap of C$394.84 billion, a price-to-earnings ratio of 17.98, a price-to-earnings-growth ratio of 3.42 and a beta of 0.94. Royal Bank of Canada has a 1 year low of C$199.27 and a 1 year high of C$306.38.

Royal Bank of Canada (TSE:RY - Get Free Report) NYSE: RY last issued its quarterly earnings results on Thursday, August 27th. The financial services provider reported C$4.28 earnings per share for the quarter. The business had revenue of C$18.54 billion during the quarter. Royal Bank of Canada had a return on equity of 16.11% and a net margin of 15.92%.

Royal Bank of Canada Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 24th were given a dividend of $1.76 per share. This is a positive change from Royal Bank of Canada's previous quarterly dividend of $1.64. The ex-dividend date was Monday, July 27th. This represents a $7.04 dividend on an annualized basis and a dividend yield of 2.5%. Royal Bank of Canada's payout ratio is presently 41.49%.

Insider Transactions at Royal Bank of Canada

In related news, insider Kelly Bradley sold 1,644 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of C$283.03, for a total transaction of C$465,301.32. Following the transaction, the insider owned 1,043 shares in the company, valued at C$295,200.29. This trade represents a 61.18% decrease in their ownership of the stock. Also, Director David Ian Mckay sold 23,091 shares of the business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of C$279.97, for a total value of C$6,464,787.27. Following the sale, the director directly owned 5,873 shares in the company, valued at approximately C$1,644,263.81. The trade was a 79.72% decrease in their position. In the last three months, insiders sold 292,398 shares of company stock valued at $84,179,616.

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.

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