Capital World Investors Grows Position in Royal Bank Of Canada $RY

Key Points

• Capital World Investors massively increased its Royal Bank of Canada stake in the fourth quarter, boosting holdings by 2,879.7% to 691,838 shares worth about $117.9 million.
• Other major institutions also added to or maintained large positions, and about 45.31% of the stock is now owned by institutional investors.
• Royal Bank of Canada reported better-than-expected quarterly earnings and raised its dividend to $1.76 per share quarterly, implying an annualized yield of 3.6%.

Capital World Investors lifted its position in shares of Royal Bank Of Canada (NYSE:RY - Free Report) TSE: RY by 2,879.7% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 691,838 shares of the financial services provider's stock after purchasing an additional 668,620 shares during the quarter. Capital World Investors' holdings in Royal Bank Of Canada were worth $117,943,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in shares of Royal Bank Of Canada by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 67,628,463 shares of the financial services provider's stock valued at $11,529,165,000 after purchasing an additional 1,290,142 shares in the last quarter. Norges Bank bought a new stake in shares of Royal Bank Of Canada during the 4th quarter valued at $3,472,382,000. Geode Capital Management LLC boosted its holdings in shares of Royal Bank Of Canada by 6.9% during the 4th quarter. Geode Capital Management LLC now owns 13,741,480 shares of the financial services provider's stock valued at $2,389,773,000 after buying an additional 882,253 shares in the last quarter. Canerector Inc. boosted its holdings in shares of Royal Bank Of Canada by 20,412.0% during the 3rd quarter. Canerector Inc. now owns 13,332,800 shares of the financial services provider's stock valued at $1,964,188,000 after buying an additional 13,267,800 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its holdings in shares of Royal Bank Of Canada by 3.1% during the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 11,147,980 shares of the financial services provider's stock valued at $1,642,712,000 after buying an additional 338,575 shares in the last quarter. 45.31% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on RY. Canadian Imperial Bank of Commerce restated a "neutral" rating on shares of Royal Bank Of Canada in a report on Friday, May 29th. Raymond James Financial cut shares of Royal Bank Of Canada from an "outperform" rating to a "market perform" rating in a report on Tuesday, May 12th. Weiss Ratings upgraded shares of Royal Bank Of Canada from a "buy (b)" rating to a "buy (b+)" rating in a report on Monday, June 1st. Scotiabank restated an "outperform" rating on shares of Royal Bank Of Canada in a report on Monday, June 1st. Finally, TD Securities restated a "buy" rating on shares of Royal Bank Of Canada in a report on Friday, May 29th. Ten equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, Royal Bank Of Canada currently has a consensus rating of "Moderate Buy" and an average price target of $162.00.

Royal Bank Of Canada Stock Performance

Shares of Royal Bank Of Canada stock opened at $195.34 on Tuesday. The stock has a market cap of $271.47 billion, a price-to-earnings ratio of 17.55, a PEG ratio of 1.53 and a beta of 0.81. The firm's 50-day moving average is $179.06 and its 200 day moving average is $170.51. Royal Bank Of Canada has a 1 year low of $126.02 and a 1 year high of $196.53. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.70 and a quick ratio of 0.70.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY last announced its quarterly earnings results on Thursday, May 28th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.81 by $0.03. The company had revenue of $12.84 billion for the quarter, compared to analysts' expectations of $12.74 billion. Royal Bank Of Canada had a net margin of 15.92% and a return on equity of 17.83%. Royal Bank Of Canada's revenue was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.12 EPS. Sell-side analysts anticipate that Royal Bank Of Canada will post 11.52 EPS for the current fiscal year.

Royal Bank Of Canada Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Investors of record on Monday, July 27th will be paid a $1.76 dividend. This represents a $7.04 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Monday, July 27th. This is a positive change from Royal Bank Of Canada's previous quarterly dividend of $1.64. Royal Bank Of Canada's dividend payout ratio (DPR) is presently 42.41%.

Royal Bank Of Canada 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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