As of May 17, 2023, First Trust Advisors LP has increased its stake in Royal Bank of Canada (NYSE:RY) (TSE:RY) by an impressive 12.1% during the fourth quarter. According to recent filings with the Securities and Exchange Commission, the institutional investor now owns a total of 800,826 shares in the financial services provider’s stock after purchasing an additional 86,264 shares over the same period. The total value of this investment is believed to be worth around $75,302,000.
Royal Bank of Canada is renowned for providing a wide range of banking and financial solutions across multiple sectors. Its operating structure consists of six main segments including Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, Capital Markets, and Corporate Support.
With a market capitalization of $132.38 billion, Royal Bank of Canada has established itself as one of the leading players in its sector. Shares in NYSE RY opened at $95.19 on Wednesday; making it a highly attractive option for those looking to invest in promising financial service providers.
The company boasts an attractive P/E ratio which currently stands at around 11.82 alongside a respectable price-to-earnings-growth ratio of approximately 1.68. Additionally, it has consistently demonstrated stable growth and exhibits a beta rating of just 0.82 – indicating lower levels of volatility compared to other stocks in the industry.
Overall figures show that Royal Bank of Canada has had an excellent year – demonstrating significant growth since reaching a 52-week low-point back in May 2022 when shares raked up $83.63 per unit which represented discouraging times for shareholders before regaining composure by early Q3 with steady growth that saw their shares rise above recurring threshold highs from September through October until the present day with fluctuations within moderate ranges showing optimism for future forecasts.
It’s clear that Royal Bank of Canada is an excellent contender for those looking to invest in a financial service provider that has demonstrated consistent growth and established itself as a leading player in the industry. Given its positive figures and outlook, there’s no doubt that continued investment in this stock will likely yield significant returns for investors over the long-term.
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RBC sees significant changes in stock positions with new hedge fund acquisitions
Royal Bank of Canada (RBC), one of the largest banks in Canada, has seen significant changes in their stock positions recently with the acquisition of new stakes by a number of hedge funds. Victory Capital Management Inc. acquired a new stake worth $2,602,000 whilst Triasima Portfolio Management inc. purchased a stake valued at approximately $117,087,000. Sowell Financial Services LLC also bought into RBC’s shares for approximately $993,000 and Aviva PLC enhanced its stake by 6.4%, now owning 424,647 shares after purchasing an additional 25,609 shares last quarter. The company’s continued growth resulted in increased interest from these institutional investors and hedge funds, who currently own over 41% of the bank’s stock.
Although analysts have given varying opinions on RBC’s stocks recently- such as CIBC downgrading their rating to neutral – data from Bloomberg.com indicates that RBC has an average price target of $138.33 with most analysts giving it a hold rating.
The bank operates through various segments which include Personal and Commercial Banking dealing with a broad suite of financial products and services across Canada; Wealth Management offering investment management services; Insurance providing car and home insurance; Investor and Treasury Services supporting clients in managing assets; Capital Markets offering corporate banking services and Corporate Support.
Royal Bank of Canada released positive quarterly earnings results on March 1st indicating strong growth potential as they posted earnings per share (EPS) of $2.26 (beating analysts’ consensus estimate by $0.09) along with revenue exceeding expectation.
Additionally, Royal Bank of Canada announced that there has been an increase in quarterly dividend payouts to shareholders from $0.98 to $0.992 per share resulting in an annualized dividend yield of 4.17%. This payout ratio equates to 48.57% indicating that RBC maintains reasonable reinvestment capacity.
Overall, whilst analysts may differ in their perspectives on the bank’s stock, Royal Bank of Canada continues to depict stable growth potential and an attractive level of investment for institutional investors and hedge funds.
