Technicals Say Royal Bank of Canada (RY) Is A Hold

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Royal Bank of Canada (NYSE:RY) finished Friday with a subtraction of -$1.01 to close at $94.02, a downside of -1.06 percent. An average of 765,000 shares of common stock have been traded in the last five days. There was a gain of $0.36 in the past week, and it reached a new high 12 times over the past 12 months. The last 20 days have seen an average of 1,111,225 shares traded, while the 50-day average volume stands at 905,748.

RY stock has decreased by -5.77% in the last month. The company shares reached their 1-month lowest point of $92.36 on 12/22/22. With the stock rallying to its 52-week high on 01/18/22, shares of the company touched a low of $83.63 and a high of $119.41 in 52 weeks. It has reached a new high 11 times so far this year and lost -11.42% or -$12.12 in price. In spite of this, the price is down -21.26% from the 52-week high.


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Valuation Metrics

Royal Bank of Canada (RY) has a trailing price-to-earnings (P/E) ratio of 11.60. The stock’s beta is 0.82. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.32, the price-to-book (PB) ratio at 1.77, and the price-to-cash flow ratio at 14.13.

The company has a payout ratio of 61.10%. The company’s most recent quarterly dividend payment was $0.9832 a share, representing a down of -1.68% from $1.00 last year. Its latest decrease dividend $0.0168 reported on Wednesday November 30 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.11 and a total debt to equity ratio of 3.17 for the quarter ending July 30. Its gross profit as reported stood at $17.65 billion compared to revenue of $31.67 billion.

Earnings Surprise

The analyst consensus anticipated Royal Bank of Canada’s latest quarter earnings to come in at $1.98 per share, but it turned out to be $1.88, a -5.10% surprise. At the end of the quarter ending July 30, Royal Bank of Canada’s stock balance sheet showed total debt was $411.13 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Royal Bank of Canada (RY) price momentum. RSI 9-day as of the close on 30 December was 43.27%, suggesting the stock is Neutral, with historical volatility in this time frame at 15.28%.

As of today, RY’s price is $94.40 +0.38% or $0.36 from its 5-day moving average. RY is currently trading -6.22% lower than its 20-day SMA and -2.43% lower than its 100-day SMA. However, the stock’s current price level is +4.93% above the SMA50 and -15.36% below the SMA200.

The stochastic %K and %D were 30.31% and 32.08%, respectively, and the average true range (ATR) was 1.62. With the 14-day stochastic at 26.43% and the average true range at 1.67, the RSI (14) stands at 44.22%. The stock has reached 0.18 on the 9-day MACD Oscillator while the 14-day reading was at -0.19.

Analyst Ratings

BofA Securities upgraded Royal Bank of Canada (NYSE: RY) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Underperform. The consensus rating for Royal Bank of Canada (RY) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell RY, while 2 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is RY’s price target for the next 12 months?

Analysts predict a range of price targets between $93.91 and $104.00, with a median target of $98.96. Taking a look at these predictions, the average price target given by analysts for Royal Bank of Canada (RY) stock is $98.96.

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