Royal Bank of Canada: A Financial Giant
As one of the world’s leading diversified financial service companies, Royal Bank of Canada (TSE:RY) (NYSE:RY) has managed to capture the attention and admiration of several investment analysts. Out of eight rating firms covering the stock, five have assigned a buy recommendation while only two have issued a hold recommendation, leaving a sole analyst with a sell resolution. This well-rounded status indicates an average rating of “Moderate Buy,” according to Bloomberg reports.
Operating through five dynamic segments – Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury, and Capital Markets – Royal Bank of Canada provides a comprehensive range of services across multiple fields. The company offers checking and savings accounts, home equity financing, personal lending, private banking, mutual funds and self-directed brokerage accounts among several others under its Personal & Commercial Banking wing.
The Wealth Management segment focuses on providing tailored solutions to clients seeking wealth planning and management assistance. From retirement income planning to customized portfolio management services – every step is handled by experts aiming for maximum gains while maintaining security.
Similarly, the Insurance segment works towards providing protection against financial risks that individuals and businesses may face in their daily operations. By delivering optimal insurance options at reduced costs through collaborations with insurers worldwide – it ensures that customers are not left unprotected in demanding times.
Investor & Treasury Services offer front- and back-office services such as trade processing and settlement to institutions worldwide using reliable technological solutions resulting in faster-paced transactions whilst reducing risks. It also delivers fund administration outsourcing both domestically and internationally.
Lastly, Capital Markets provides services related to corporate finance – such as loans – sales-and-trading along with research from which clients can gain insights for making informed decisions furthering their cause or broadening their portfolios.
Currently trading at C$122.32 on Friday with its market capitalization being C$170.02 billion; it experienced growth that ranged between C$116.75 and C$140.18 for its 52-week high and low, respectively. Its performance is further evidenced by a 50-day simple moving average of C$127.73 and a two-hundred day simple moving average of C$130.97 indicating that the bank has remained consistent over the years.
In conclusion, Royal Bank of Canada’s success is noted by its market capitalization value and diverse financial services it provides making it a suitable contender for diverse investment portfolios looking to maximize growth potentials while minimizing risks. It’s no surprise that the company has garnered favorable ratings from analysts throughout the years, and with an average 12-month target price of C$135.76 among its peers this year, RY has continued to establish itself as a giant in the international financial industry market to give any wise investor significant reasons to consider it anew.
[bs_slider_forecast ticker=”RY”]
RBC Shares Suffer Price Target Drops and Disappointing Q2 Earnings Report
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”RY” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Royal Bank of Canada (RBC) has been the talk of the town lately with numerous brokerages dropping their price targets on its shares, following a disappointing earnings report. This news comes as Director David Ian Mckay sold off 4,131 shares of RBC’s stock in June.
Despite being one of Canada’s largest financial services providers that operates through five different segments; Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury and Capital Markets; RBC has reported lower-than-expected earnings per share (EPS) for Q2 2017.
The company declared $2.65 EPS for Q2 2017, missing analysts’ consensus estimates by C($0.14). But the revenue was higher than analysts’ expectations at C$13.52 billion compared to C$12.88 billion. As the return on equity was at 13.28% and margin at 27.81%, sell-side analysts forecast an EPS of 11.5114784 for this fiscal year.
Recent notes from National Bankshares, National Bank Financial and Barclays brokers included drops in their respective price targets on RBC shares to C$136 ($103), C$136 ($103) and C$122 ($92), respectively.
However, Fundamental Research maintained a positive take and set a target price at C$134.43 ($102), indicating buys for the firm’s stock.
In other news, shareholders will receive an elevated quarterly dividend of $1.35 per share from Royal Bank of Canada as announced earlier this year – up from its previous $1.32 payout ratio on record days July 26th and payment date August 24th , leading to yield approximately of 4.41%.
Nevertheless, investors are concerned regarding RBC’s handling challenges against The Office of the Superintendent of Financial Institutions moves to make changes in housing loans amidst macroeconomic ambiance where fraudsters have become ever more effective. While the stock currently trades close to its 52 week low of $72.22, traders are under pressure as it may slide further in the near future.
