Royal Bank Of Canada (NYSE:RY) Sees Significant Decrease in Short Interest

Key Points

• Short interest in Royal Bank of Canada fell 51.9% to 2.53 million shares as of September 15, representing approximately 0.2% of shares outstanding and a 3.0-day short-interest ratio.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and a $225 average price target. RBC also exceeded quarterly expectations, reporting $3.07 in EPS versus the $2.89 consensus estimate.
• RBC announced a quarterly dividend of C$1.76 per share, equivalent to C$7.04 annually and a 3.5% yield; institutional investors own approximately 45.31% of the company.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY was the target of a large decline in short interest during the month of September. As of September 15th, there was short interest totaling 2,530,636 shares, a decline of 51.9% from the August 31st total of 5,258,072 shares. Approximately 0.2% of the company's stock are sold short. Based on an average daily volume of 843,979 shares, the short-interest ratio is currently 3.0 days.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RY. Canadian Imperial Bank of Commerce reissued a "neutral" rating on shares of Royal Bank Of Canada in a research report on Wednesday, August 19th. Keefe, Bruyette & Woods assumed coverage on shares of Royal Bank Of Canada in a research report on Friday, August 21st. They issued a "market perform" rating for the company. Scotiabank reiterated an "outperform" rating on shares of Royal Bank Of Canada in a research note on Friday, August 28th. TD Securities reissued a "buy" rating on shares of Royal Bank Of Canada in a research report on Wednesday, August 12th. Finally, Argus set a $225.00 price objective on Royal Bank Of Canada in a research report on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $225.00.

Royal Bank Of Canada Price Performance

Shares of NYSE RY traded down $1.22 during trading on Tuesday, reaching $199.73. The company had a trading volume of 812,408 shares, compared to its average volume of 1,442,252. The stock has a market capitalization of $276.95 billion, a PE ratio of 17.47, a price-to-earnings-growth ratio of 1.81 and a beta of 0.79. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 0.10. The stock has a 50-day moving average price of $207.78 and a two-hundred day moving average price of $193.36. Royal Bank Of Canada has a twelve month low of $143.13 and a twelve month high of $218.57.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY last posted its quarterly earnings data on Thursday, August 27th. The financial services provider reported $3.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.89 by $0.18. The business had revenue of $13.22 billion for the quarter, compared to analysts' expectations of $12.98 billion. Royal Bank Of Canada had a return on equity of 17.79% and a net margin of 16.17%. As a group, sell-side analysts predict that Royal Bank Of Canada will post 11.83 earnings per share for the current year.

Royal Bank Of Canada Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Monday, October 26th will be given a dividend of C$1.76 per share. This represents a $7.04 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Monday, October 26th. Royal Bank Of Canada's payout ratio is presently 43.39%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. The Manufacturers Life Insurance Company acquired a new stake in Royal Bank Of Canada during the 2nd quarter valued at approximately $2,296,717,000. M. Kulyk & Associates LLC bought a new stake in shares of Royal Bank Of Canada in the 2nd quarter valued at $2,953,000. Legal & General Group Plc acquired a new stake in shares of Royal Bank Of Canada during the second quarter worth $1,645,758,000. Korea Investment CORP acquired a new position in shares of Royal Bank Of Canada in the 2nd quarter valued at about $175,489,000. Finally, Main Street Research LLC acquired a new position in shares of Royal Bank Of Canada in the 1st quarter valued at about $36,007,000. Hedge funds and other institutional investors own 45.31% of the company's stock.

About Royal Bank Of Canada

Royal Bank of Canada NYSE: RY is a diversified financial services company headquartered in Toronto, Canada. Founded in 1864, it operates under the RBC brand and serves individuals, businesses, institutional clients and governments.

RBC provides personal and commercial banking services, including deposit accounts, lending, mortgages, credit cards, payment solutions and financial advice. Its wealth management operations offer investment management, brokerage, trust, private banking and financial planning services to individuals, families and institutions.

Through RBC Capital Markets, the company provides investment banking, corporate banking, securities, sales and trading, and financial advisory services.

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