Alberta Investment Management Corp Invests $323.88 Million in Royal Bank Of Canada $RY

Key Points

• Alberta Investment Management Corp. bought 1.57 million shares of Royal Bank of Canada, valued at approximately $323.9 million, making RY its fourth-largest portfolio holding and representing about 1.8% of its portfolio.
• Analysts remain broadly positive, with the stock carrying a consensus “Moderate Buy” rating and a $225 price target, though Raymond James downgraded it to “market perform.”
• RBC exceeded quarterly earnings and revenue expectations, while raising its quarterly dividend to $1.76, equivalent to a $7.04 annualized payout and a 3.2% yield.

Alberta Investment Management Corp bought a new stake in Royal Bank Of Canada (NYSE:RY - Free Report) TSE: RY in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 1,565,659 shares of the financial services provider's stock, valued at approximately $323,880,000. Royal Bank Of Canada makes up approximately 1.8% of Alberta Investment Management Corp's portfolio, making the stock its 4th largest position. Alberta Investment Management Corp owned about 0.11% of Royal Bank Of Canada at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Harvest Fund Management Co. Ltd purchased a new stake in shares of Royal Bank Of Canada during the 4th quarter worth approximately $25,000. Key Financial Inc raised its stake in shares of Royal Bank Of Canada by 63.0% in the first quarter. Key Financial Inc now owns 163 shares of the financial services provider's stock valued at $26,000 after buying an additional 63 shares during the period. Johnson Financial Group Inc. bought a new stake in shares of Royal Bank Of Canada in the third quarter valued at $27,000. Maseco LLP lifted its position in shares of Royal Bank Of Canada by 355.0% during the 1st quarter. Maseco LLP now owns 182 shares of the financial services provider's stock valued at $29,000 after buying an additional 142 shares during the last quarter. Finally, Cornerstone Planning Group LLC lifted its position in shares of Royal Bank Of Canada by 55.3% during the 4th quarter. Cornerstone Planning Group LLC now owns 247 shares of the financial services provider's stock valued at $41,000 after buying an additional 88 shares during the last quarter. 45.31% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on RY. Raymond James Financial lowered Royal Bank Of Canada from an "outperform" rating to a "market perform" rating in a report on Tuesday, May 12th. Argus set a $225.00 price objective on shares of Royal Bank Of Canada in a report on Thursday, June 11th. Scotiabank reiterated an "outperform" rating on shares of Royal Bank Of Canada in a research report on Monday, June 1st. TD Securities reiterated a "buy" rating on shares of Royal Bank Of Canada in a research note on Wednesday. Finally, Weiss Ratings raised shares of Royal Bank Of Canada from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $225.00.

Royal Bank Of Canada Stock Performance

Shares of RY opened at $216.67 on Monday. Royal Bank Of Canada has a 52-week low of $135.92 and a 52-week high of $218.57. The stock's 50-day simple moving average is $207.42 and its 200 day simple moving average is $185.32. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market capitalization of $300.44 billion, a price-to-earnings ratio of 19.47, a price-to-earnings-growth ratio of 1.71 and a beta of 0.80.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY last posted its earnings results on Thursday, May 28th. The financial services provider reported $2.84 earnings per share for the quarter, beating analysts' consensus estimates of $2.81 by $0.03. The business had revenue of $12.84 billion during the quarter, compared to analyst estimates of $12.74 billion. Royal Bank Of Canada had a return on equity of 17.68% and a net margin of 15.92%.The company's quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.12 EPS. Research analysts forecast that Royal Bank Of Canada will post 11.47 EPS for the current fiscal year.

Royal Bank Of Canada Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, July 27th will be paid a $1.76 dividend. The ex-dividend date is Monday, July 27th. This represents a $7.04 annualized dividend and a yield of 3.2%. This is a boost from Royal Bank Of Canada's previous quarterly dividend of $1.64. Royal Bank Of Canada's dividend payout ratio is currently 44.56%.

Royal Bank Of Canada Company Profile

Royal Bank of Canada NYSE: RY is a diversified financial services company and one of Canada's largest banks. Founded in 1864 in Halifax, Nova Scotia, the firm is now headquartered in Toronto, Ontario. It provides a broad range of banking and financial services to individuals, businesses, and institutional clients through a network of branches, digital platforms and international offices.

RBC operates across several principal business segments including personal and commercial banking, wealth management, insurance, investor and treasury services, capital markets, and global asset management.

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