Royal Bank of Canada (TSE:RY) Shares Break Above Two Hundred Day Moving Average - Here's Why

Key Points

• Royal Bank of Canada shares broke above their 200-day moving average, reaching C$283.53 before closing at C$282.78, compared with the C$276.04 long-term average.
• Analyst sentiment remains positive, with eight Buy ratings and four Holds producing a consensus “Moderate Buy” rating and an average price target of C$292.86.
• The bank reported quarterly EPS of C$4.28 on C$18.54 billion in revenue and declared a quarterly dividend of C$1.76, equivalent to C$7.04 annually and a 2.5% yield.

Royal Bank of Canada (TSE:RY - Get Free Report) NYSE: RY's share price crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of C$276.04 and traded as high as C$283.53. Royal Bank of Canada shares last traded at C$282.78, with a volume of 3,890,751 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the stock. Desjardins set a C$320.00 price target on shares of Royal Bank of Canada and gave the company a "buy" rating in a report on Wednesday, September 2nd. Raymond James Financial increased their price objective on Royal Bank of Canada from C$270.50 to C$306.00 and gave the company a "market perform" rating in a research report on Wednesday, August 12th. Scotia increased their target price on shares of Royal Bank of Canada from C$311.00 to C$312.00 and gave the company a "sector outperform" rating in a research note on Friday, August 28th. Jefferies Financial Group boosted their price target on shares of Royal Bank of Canada from C$268.00 to C$271.00 in a report on Thursday, September 3rd. Finally, Barclays upped their price target on Royal Bank of Canada from C$260.00 to C$300.00 in a research report on Friday, August 21st. Eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Royal Bank of Canada presently has a consensus rating of "Moderate Buy" and an average target price of C$292.86.

Royal Bank of Canada Stock Performance

The firm has a market capitalization of C$391.49 billion, a P/E ratio of 17.83, a price-to-earnings-growth ratio of 3.42 and a beta of 0.97. The company has a 50-day moving average price of C$283.71 and a 200-day moving average price of C$276.04.

Royal Bank of Canada (TSE:RY - Get Free Report) NYSE: RY last announced its quarterly earnings results on Thursday, August 27th. The financial services provider reported C$4.28 earnings per share for the quarter. Royal Bank of Canada had a net margin of 15.92% and a return on equity of 16.11%. The business had revenue of C$18.54 billion for the quarter. Equities analysts predict that Royal Bank of Canada will post 12.35 EPS for the current year.

Royal Bank of Canada Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Tuesday, November 24th will be issued a $1.76 dividend. This represents a $7.04 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Monday, October 26th. Royal Bank of Canada's dividend payout ratio is 41.49%.

Insiders Place Their Bets

In related news, insider Kelly Bradley sold 359 shares of Royal Bank of Canada stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of C$282.24, for a total value of C$101,324.16. Also, insider Maria Elena Douvas sold 9,604 shares of the company's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of C$275.20, for a total transaction of C$2,643,020.80. Over the last 90 days, insiders have sold 75,908 shares of company stock worth $21,177,587.

Royal Bank of Canada Company Profile

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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