Bank of America Corp DE Makes New $251.25 Million Investment in Royal Bank Of Canada $RY

Key Points

• Bank of America initiated a $251.25 million position in Royal Bank of Canada during the second quarter, acquiring 1.21 million shares and representing approximately 0.09% ownership.
• Royal Bank of Canada reported quarterly earnings of $3.07 per share, exceeding estimates of $2.89, while revenue reached $13.22 billion versus the $12.98 billion consensus forecast.
• RBC announced a quarterly dividend of $1.76 per share, equivalent to $7.04 annually and a 3.5% yield; analysts maintain a “Moderate Buy” consensus with a $225 target price.

Bank of America Corp DE bought a new stake in Royal Bank Of Canada (NYSE:RY - Free Report) TSE: RY during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 1,213,945 shares of the financial services provider's stock, valued at approximately $251,250,000. Bank of America Corp DE owned about 0.09% of Royal Bank Of Canada as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of RY. Caisse de depot et placement du Quebec acquired a new stake in shares of Royal Bank Of Canada during the 2nd quarter worth approximately $360,367,000. Man Group plc acquired a new position in shares of Royal Bank Of Canada in the 2nd quarter valued at $38,616,000. Jupiter Topco LLC acquired a new position in shares of Royal Bank Of Canada in the 2nd quarter valued at $24,487,000. Bristol Gate Capital Partners Inc. purchased a new stake in Royal Bank Of Canada during the second quarter worth $703,000. Finally, Hsbc Holdings PLC purchased a new stake in Royal Bank Of Canada during the second quarter worth $22,536,000. Institutional investors and hedge funds own 45.31% of the company's stock.

Royal Bank Of Canada Stock Down 0.9%

Shares of RY opened at $202.30 on Thursday. Royal Bank Of Canada has a 52-week low of $143.13 and a 52-week high of $218.57. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.10. The stock has a fifty day simple moving average of $209.48 and a two-hundred day simple moving average of $191.28. The company has a market capitalization of $280.50 billion, a PE ratio of 17.70, a price-to-earnings-growth ratio of 1.83 and a beta of 0.79.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY last announced its quarterly earnings results on Thursday, August 27th. The financial services provider reported $3.07 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.18. The firm had revenue of $13.22 billion for 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%. As a group, equities analysts forecast that Royal Bank Of Canada will post 11.83 EPS for the current year.

Royal Bank Of Canada Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Monday, October 26th will be given 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 yield of 3.5%. Royal Bank Of Canada's dividend payout ratio is presently 43.39%.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating on shares of Royal Bank Of Canada in a research note on Wednesday, August 19th. Argus set a $225.00 target price on Royal Bank Of Canada in a research report on Thursday, June 11th. Barclays reissued an "overweight" rating on shares of Royal Bank Of Canada in a research note on Friday, August 21st. Weiss Ratings raised shares of Royal Bank Of Canada from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, July 29th. Finally, Scotiabank reaffirmed an "outperform" rating on shares of Royal Bank Of Canada in a research note on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $225.00.

Royal Bank Of Canada Profile

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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