Royal Bank of Canada (RY): Technicals Say You should Hold

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Royal Bank of Canada (NYSE:RY) saw an upside of 0.24% to close Tuesday at $100.99 after adding $0.24 on the day. The 5-day average trading volume is 1,253,160 shares of the company’s common stock. It has gained $101.57 in the past week and touched a new high 1 time within the past 5 days. An average of 912,555 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 925,092.

RY’s 1-month performance is 6.79% or $6.62 on its low of $93.30 reached on 01/03/23. The company’s shares have touched a 52-week low of $83.63 and high of $116.84, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, RY has achieved 7.41% or $6.97 and has reached a new high 10 times. However, the current price is down -13.57% from the 52-week high price.


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Valuation Metrics

RY stock has a beta of 0.82. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.57 while the price-to-book (PB) in the most recent quarter is 1.87, with the price to cash flow ratio at 14.94.

As well, the company’s long term debt to equity for the quarter ending July 30 was 0.11, while the total debt to equity was 3.17. The firm’s gross profit as reported stood at $17.65 billion against revenue of $31.67 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected RY to announce $1.98 per share in earnings in its latest quarter, but it posted $1.88, representing a -5.10% surprise.

Let’s look briefly at Royal Bank of Canada (RY) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 69.14% to suggest the stock is trending Neutral, with historical volatility in this time period at 10.36%.

The stock’s 5-day moving average is $100.39, reflecting a -0.08% or -$0.08 change from its current price. RY is currently trading +7.83% above its 20-day SMA, +7.40% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +7.01% and SMA200 by-7.73%.

Stochastic %K and %D was 90.52% and 86.21% and the average true range (ATR) pointed at 1.47. The RSI (14) points at 64.70%, while the 14-day stochastic is at 92.23% with the period’s ATR at 1.54. The stock’s 9-day MACD Oscillator is pointing at 0.57 and 1.75 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Royal Bank of Canada (NYSE: RY), BofA Securities upgraded it to a Neutral rating. They previously had an Underperform rating on the stock.

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