Royal Bank of Canada (TSE:RY) Reaches New 1-Year High After Analyst Upgrade

Key Points

• The Royal Bank of Canada reached a new 52-week high of C$189.47, indicating strong performance, with analysts providing a consensus rating of "Buy" and a target price averaging C$189.62.
• The bank recently increased its quarterly dividend from $1.48 to $1.54 per share, reflecting a positive growth in returns for investors with an annualized yield of 3.3%.
• Insider selling occurred with several executives offloading shares, totaling over C$11 million in value within the last ninety days, which may warrant investor attention.

Royal Bank of Canada (TSE:RY - Get Free Report) NYSE: RY hit a new 52-week high during mid-day trading on Wednesday after CIBC raised their price target on the stock from C$183.00 to C$195.00. CIBC currently has an outperform rating on the stock. Royal Bank of Canada traded as high as C$189.47 and last traded at C$189.35, with a volume of 55291 shares trading hands. The stock had previously closed at C$189.03.

A number of other equities analysts also recently issued reports on the company. Canaccord Genuity Group set a C$194.00 price target on Royal Bank of Canada and gave the stock a "buy" rating in a research report on Tuesday, June 24th. National Bankshares upped their price target on Royal Bank of Canada from C$177.00 to C$180.00 and gave the stock a "sector perform" rating in a research report on Friday, August 15th. Scotiabank raised Royal Bank of Canada to a "strong-buy" rating in a research report on Thursday, May 15th. National Bank Financial downgraded Royal Bank of Canada from an "outperform" rating to a "sector perform" rating in a research report on Thursday, May 29th. Finally, Desjardins upped their price target on Royal Bank of Canada from C$185.00 to C$193.00 and gave the stock a "buy" rating in a research report on Wednesday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of C$190.54.

Insider Activity at Royal Bank of Canada

In related news, Senior Officer Jennifer Kristine Publicover sold 401 shares of the company's stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of C$182.30, for a total value of C$73,102.98. Following the transaction, the insider directly owned 152 shares of the company's stock, valued at C$27,709.86. This represents a 72.51% decrease in their position. Also, Senior Officer Graeme Ashley Hepworth sold 308 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of C$182.30, for a total value of C$56,148.92. Insiders have sold a total of 42,026 shares of company stock valued at $7,517,844 in the last ninety days.

Royal Bank of Canada Stock Performance

The stock has a market capitalization of C$269.77 billion, a PE ratio of 16.61, a price-to-earnings-growth ratio of 3.42 and a beta of 0.84. The stock's 50 day moving average is C$180.93 and its two-hundred day moving average is C$171.79.

Royal Bank of Canada Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 22nd were issued a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Thursday, July 24th. This is a positive change from Royal Bank of Canada's previous quarterly dividend of $1.48. Royal Bank of Canada's payout ratio is currently 49.49%.

Royal Bank of Canada Company Profile

Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the U.S.