Short Interest in Toronto Dominion Bank (The) (NYSE:TD) Drops By 57.7%

Key Points

• Short interest in Toronto Dominion Bank fell sharply in May, dropping 57.7% to 4.13 million shares, or about 0.2% of the float. The days-to-cover ratio now stands at 3.1 days.
• TD reported earnings that beat expectations, with quarterly EPS of $1.74 versus the $1.63 consensus and revenue of $11.80 billion above estimates. However, revenue was still down 31.1% year over year.
• The bank raised its quarterly dividend to $1.12 per share from $1.08, implying a 3.9% annualized yield. Analysts currently view the stock as a Moderate Buy overall.

Toronto Dominion Bank (The) (NYSE:TD - Get Free Report) TSE: TD was the target of a significant drop in short interest in May. As of May 15th, there was short interest totaling 4,127,228 shares, a drop of 57.7% from the April 30th total of 9,747,325 shares. Based on an average daily trading volume, of 1,339,140 shares, the days-to-cover ratio is currently 3.1 days. Approximately 0.2% of the company's stock are short sold.

Toronto Dominion Bank Stock Performance

TD stock traded up $0.40 during mid-day trading on Friday, hitting $113.74. 2,592,340 shares of the company were exchanged, compared to its average volume of 1,453,331. The business has a 50 day simple moving average of $103.24 and a 200-day simple moving average of $96.05. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $188.38 billion, a PE ratio of 17.74, a price-to-earnings-growth ratio of 1.27 and a beta of 0.72. Toronto Dominion Bank has a 1-year low of $68.08 and a 1-year high of $114.26.

Toronto Dominion Bank (NYSE:TD - Get Free Report) TSE: TD last posted its earnings results on Thursday, May 28th. The bank reported $1.74 EPS for the quarter, beating the consensus estimate of $1.63 by $0.11. The company had revenue of $11.80 billion for the quarter, compared to the consensus estimate of $11.04 billion. Toronto Dominion Bank had a return on equity of 14.83% and a net margin of 13.20%.The firm's revenue for the quarter was down 31.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.97 earnings per share. On average, equities analysts forecast that Toronto Dominion Bank will post 6.91 earnings per share for the current year.

Toronto Dominion Bank Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 10th will be issued a $1.12 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $4.48 dividend on an annualized basis and a yield of 3.9%. This is a positive change from Toronto Dominion Bank's previous quarterly dividend of $1.08. Toronto Dominion Bank's payout ratio is currently 48.52%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Raymond James Financial raised shares of Toronto Dominion Bank from a "market perform" rating to an "outperform" rating in a research report on Tuesday, May 12th. Canadian Imperial Bank of Commerce downgraded shares of Toronto Dominion Bank from a "strong-buy" rating to a "hold" rating in a research note on Thursday, February 12th. Scotiabank upgraded Toronto Dominion Bank from a "sector perform" rating to a "sector outperform" rating in a report on Monday, May 4th. Weiss Ratings downgraded Toronto Dominion Bank from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Friday. Finally, Wall Street Zen lowered Toronto Dominion Bank from a "hold" rating to a "sell" rating in a research note on Saturday, May 23rd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Toronto Dominion Bank currently has a consensus rating of "Moderate Buy".

Trending Headlines about Toronto Dominion Bank

Here are the key news stories impacting Toronto Dominion Bank this week:

• Positive Sentiment: TD reported Q2 adjusted EPS of $2.38, up 21% year over year, and adjusted earnings of $4.2 billion, both ahead of expectations. Revenue also topped estimates, helped by strength in Canadian banking, wealth, and wholesale banking. TD Bank Group Reports Second Quarter 2026 Results
• Positive Sentiment: The bank lifted its quarterly dividend to $1.12 per share, a 3.7% increase, signaling confidence in capital generation and adding to its appeal for income-focused investors. TD BANK GROUP DECLARES DIVIDENDS
• Positive Sentiment: Management also guided to a $7 billion buyback, which should support per-share metrics and reinforce the view that capital returns remain a priority. TD Bank Q2 Earnings: Still A Buy, For Now
• Positive Sentiment: TD’s AI rollout in mortgage lending highlights an efficiency initiative that could reduce processing time, improve customer experience, and lower operating costs over time. TD Bank Puts Agentic AI To Work In Core Mortgage Lending
• Neutral Sentiment: Other major Canadian banks also beat earnings expectations, which helps confirm that the sector backdrop remains healthy, though it is not unique to TD. Canadian Banks Extend Earnings Beat Streak As Capital Markets Profit Jumps 27%
• Neutral Sentiment: Analysts note TD still faces AML-related remediation costs and a higher valuation after the rally, but these concerns were outweighed by the quarter’s strong operating performance. TD Bank Q2 Earnings: Still A Buy, For Now

Institutional Investors Weigh In On Toronto Dominion Bank

Institutional investors have recently modified their holdings of the business. Bayban bought a new position in Toronto Dominion Bank during the fourth quarter worth about $28,000. Harvest Fund Management Co. Ltd grew its position in shares of Toronto Dominion Bank by 112.8% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 317 shares of the bank's stock worth $30,000 after purchasing an additional 168 shares in the last quarter. CBIZ Investment Advisory Services LLC acquired a new position in shares of Toronto Dominion Bank during the 4th quarter worth approximately $34,000. Brown Lisle Cummings Inc. increased its holdings in shares of Toronto Dominion Bank by 88.4% during the first quarter. Brown Lisle Cummings Inc. now owns 407 shares of the bank's stock worth $38,000 after purchasing an additional 191 shares during the period. Finally, Cornerstone Planning Group LLC increased its holdings in shares of Toronto Dominion Bank by 177.9% during the fourth quarter. Cornerstone Planning Group LLC now owns 428 shares of the bank's stock worth $40,000 after purchasing an additional 274 shares during the period. Institutional investors own 52.37% of the company's stock.

Toronto Dominion Bank Company Profile

Toronto-Dominion Bank (TD) is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. Formed through the 1955 merger of the Bank of Toronto (founded 1855) and the Dominion Bank (founded 1869), TD is one of Canada's largest banks and offers a broad range of financial products and services to individual, small business, commercial and institutional clients.

TD's core businesses include Canadian and U.S. personal and commercial banking, wealth management, wholesale banking and insurance.

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