The financial sector is an essential component of the U.S. economy, and investing in it can be lucrative when you find the right stocks. Banks operate as intermediaries between savers and borrowers, collecting deposits from the former and providing loans to the latter (among other services). As such, banks are a valuable proxy for measuring trust in society at large. When trust deteriorates, banks often see their stock prices decline.
And while they’re not immune to market corrections, bank stocks are a solid way to grow your money over the long term. There are approximately 7,000 banks worldwide. They come in all shapes and sizes, from small local institutions to large universal banks with international operations. The different needs of individual investors mean that there is no single correct answer regarding which bank stocks are best for you as an investor.
And while trust can erode for reasons beyond a company’s control, such as natural disasters or political scandals that undermine public confidence in an institution, some banks are more vulnerable than others to adverse shocks. Some are even notorious for taking on too much risk and failing spectacularly. So if you want to invest in banks but aren’t sure which ones to buy, here is an overview of three well-known bank stocks that may appeal to you based on your risk preferences.
Royal Bank of Canada
According to Marketbeat, the thirteen analysts who cover Royal Bank of Canada (TSE: RY) (NYSE: RY) have given the stock a rating of “Moderate Buy,” which is the average recommendation for the stock. This rating can also be found in the stock’s ticker symbol: RY. Eight investment analysts say you should buy the stock, while one says you should sell the shares. The financial experts who have studied the company over the previous year have concluded that the share price needs to be set at a target average of 143.71 Canadian dollars for the subsequent 12 months.
RY has heard responses from various brokerage companies regarding their thoughts and opinions. In a research note issued on Monday, August 8, Keefe, Bruyette & Woods decreased their target price for Royal Bank of Canada from C$122.00 to C$118.00 and downgraded the company from “market perform” to “underperform” in a research note. In a research note published on Thursday, Credit Suisse Group lowered its price objective for the Royal Bank of Canada business to 143.00 Canadian dollars. Despite this, they kept their “outperform” rating for the company. On Tuesday, June 7, Argus published a research note in which they increased their target price for Royal Bank of Canada to C$157.00 and categorized the stock as a “buy.” In a research report published on Friday, May 27, TD Securities lowered their “buy” rating and their target price on Royal Bank of Canada, which had previously been set at C$150.00.
The new target price is C$145.00. Fundamental Research reaffirmed their “buy” rating on shares of Royal Bank of Canada in a report published on June 8, and they set their price objective for the stock at 142,000 Canadian Dollars. When the market opened on Monday, the price of a single share of Royal Bank of Canada stock was C$124.97. The company’s simple moving average over the last 50 days comes in at 125.28 Canadian dollars, and the simple moving average over the past 200 days comes in at 131.53 Canadian dollars. The Royal Bank of Canada hit an all-time low of 118.24 Canadian dollars during the year, reaching an all-time high of 149.60 Canadian dollars. The firm’s price-to-earnings ratio of 10.92 and its market value of 173.92 billion Canadian dollars show that the company is highly valued. The market value of the company is also in Canadian dollars. On Thursday, May 26, Royal Bank of Canada (TSE: RY) (NYSE: RY) released its most recent quarterly earnings report results.
The announcement was made publicly available. The financial services company announced earnings per share for the quarter totaling 2.99 Canadian dollars, which is $0.32 more than the consensus expectation for earnings per share, which was 2.67 Canadian dollars. The sum of 11.22 billion Canadian dollars was the total of the company’s revenue for the preceding quarter. Analysts in the financial sector anticipate that The Royal Bank of Canada will generate earnings of 11.8000006 cents per share during the current financial year. In addition, the company has announced that it will be distributing a quarterly dividend on November 24 of this year. The company has declared the dividend. Shareholders who have their information on file as of October 26 will be eligible to receive a dividend payment of $1.28 per share. The last day shareholders will be eligible to receive dividends is Tuesday, October 25.
This results in an annual dividend payout of $5.12 and a yield on the dividend investment of 4.10%. The Royal Bank of Canada keeps its payout ratio at 41.61%. On June 30, senior officer Bruce Washington Ross sold 14,000 Royal Bank of Canada stock. The transaction took place on Thursday. This occurs as a result of recent developments concerning the bank. The shares were sold on the open market for a total of $1,733,404.40, which works out to 123.81 Canadian dollars per share when divided by the number of shares sold. As a result of the successful completion of the transaction, the insider now directly owns 235 shares in the company. Each of these shares has an approximate value of 29,096.43 Canadian dollars. On Tuesday, June 21, a company director named David Ian Mckay sold a total of 4,077 shares of the company’s stock.
This development is related to some other recent business-related news. The shares were sold on the open market for $515,251.26, equivalent to 126.38 Canadian dollars per share when converted to American currency. In addition, senior executive Bruce Washington Ross sold 14,000 shares of the company’s stock on Thursday, June 30. The transactions above were carried out. With an average price of 123.81 Canadian dollars per share, purchasing the shares resulted in a total payment of 1,733,404.40 dollars in Canadian currency.
At the moment, the company insider has 235 shares of the business, and the combined worth of those shares is around $29,096.43 Canadian. Business insiders were responsible for the selling of 26,638 shares of company stock during the most recent three months, which resulted in total revenue of $3,325,347 being collected. Everyone knows that the Royal Bank of Canada is the best place to get different financial services.
The Toronto-Dominion Bank
According to MarketBeat Ratings, the nineteen analysts that track The Toronto-Dominion Bank (TSE: TD) (NYSE: TD) have collectively assigned the stock a rating of “Hold” as the consensus recommendation for the company stock. Three analysts say you should buy the stock, two say you should keep the store, and one says you should sell the stock. The opinions of all three analysts are in favor of purchasing the company. Analysts who have published research on the company have settled on a price target of 98.75 Canadian dollars as their average objective for the stock’s price over the next year. In recent years, scientists have done a lot of research on TD. National Bankshares increased their price objective on Toronto-Dominion Bank shares from C$102.00 to C$106.00 and categorized the company as “sector perform” in a research note that was issued on Friday.
The price target that Jefferies Financial Group has placed on shares of Toronto-Dominion Bank has climbed from 100.00 Canadian dollars to 100.00 Canadian dollars, as stated in research published on Friday. In a study made public on Friday, May 27, Canaccord Genuity Group reported that the price goal they had created for Toronto-Dominion Bank shares had lifted from $95.00 to $99.00. This price objective had previously been $95.00. Cormark raised its price target on shares of Toronto-Dominion Bank from $99.00 to 102.00 Canadian dollars as part of a study made public on Friday. And finally, in a research note published on August 8, Kaufman Brothers revealed that they would reduce their price objective on Toronto-Dominion Bank from $93.00 to $86.00. The announcement was made. TD stock began trading at CAD86.87 per share on Monday when the market opened. The lowest price that Toronto-Dominion Bank has been at in the last year is 77.27 Canadian dollars, and the highest price that the bank has been at in the past year is 109.08 Canadian dollars.
The company’s market value is 156.70 billion Canadian dollars, the PE ratio of the company is 10.79, and the company’s simple moving averages for the last 50 days are C$83.95. For the previous 200 days, they are C$92.41, correspondingly. On May 26, the public was given access to the results report for Toronto-Dominion Bank, which is traded under the ticker symbol TD on both the TSE and NYSE. The firm revealed earnings per share (EPS) for the quarter to be 2.02 Canadian dollars, which is $0.14 greater than the consensus expectation of 1.88 Canadian dollars. The company reported total revenues of 11.26 billion Canadian dollars during the relevant time frame. The projections of professionals specializing in equity research suggest that Toronto-Dominion Bank will bring in 7.6300004 Canadian dollars per share this year. In addition, the corporation has just announced a quarterly dividend, which will be disbursed on Monday, October 31.
This dividend was only recently declared. Shareholders who are “recorded” as of October 7 will be eligible to receive a $0.89 dividend payment per share. The date shareholders will no longer receive dividends is Thursday, October 6. When computed on this basis, this results in an annual dividend of $3.56 and a yield of 4.10%. The dividend payout ratio for The Toronto-Dominion Bank is 42.98%. This ratio is often referred to as the DPR. Customers in Canada, the United States, and other countries worldwide have access to a broad range of financial goods and services thanks to The Toronto-Dominion Bank, its subsidiaries, and affiliates. The wholesale banking industry, the retail business in Canada, and the retail business in the United States are this company’s three distinct operating facets.
At the moment of sale, consumers have the opportunity to finance the acquisition of automobiles as well as recreational vehicles if they so choose. Customers also have the chance to make personal deposits, which can be put into checking, savings, or investment accounts. This financial organization offers traditional banking services, foreign trade, cash management, business financing and investment options, and investment opportunities.
Silvergate Capital
According to Bloomberg, the fourteen different brokerages keeping an eye on Silvergate Capital Co. (NYSE: SI) have collectively assigned the company a rating of “Moderate Buy” as their recommendation for the company. This rating comes from the brokerages’ consensus that the company will experience moderate growth shortly. Nine research analysts have issued a recommendation to buy the stock, while there are only two research analysts who have provided a recommendation to hold the stock. Most analysts who evaluated the company the previous year projected that the stock’s price would rise to $156.69 on average during the next year. Visitors to Six Flags are in for a spine-tingling experience on one of the rides there. (SIX) Various research firms have produced studies on SI throughout the recent past.
In a report made public by the business on Tuesday, July 19, Wedbush restated an “outperform” rating on shares of Silvergate Capital and positioned them with a price objective of $150.00. On Tuesday, July 12, Goldman Sachs Group released a research note that decreased its “buy” rating and price target for Silvergate Capital from $100 to $86, respectively. The report also stated that it would no longer recommend the investment. These two numbers were obtained directly from the research note. On Wednesday, July 20, Wells Fargo & Company released the findings of a research report in which they increased their price objective for Silvergate Capital from $100 to $115 and gave the stock an “overweight” rating. In a study made available to the general public on Thursday, June 30, TheStreet rated Silvergate Capital with a grade of “d+,” decreasing from their prior grade of “c.” Morgan Stanley lowered their price target on shares of Silvergate Capital from $80.00 to $77.00 in a research report published on Tuesday, July 12.
Despite this adjustment, they continued to have an “equal weight” rating on the company. Alan J. Lane, the company’s Chief Executive Officer, sold 16,314 shares of the company’s stock on Thursday, July 21. The stock sale generated a total of $1,508,392.44 in revenue, with the average price of each share acquired being $92.46. You will be sent to a legal file submitted to the SEC if you click on the link that we have provided for you, where you will find additional information regarding the sale. The company’s employees hold a 1.71 percent ownership stake in the business. The share price of Six Flags, which already provides shareholders with a healthy dividend, has the potential to go up even further. Institutional investors have recently made adjustments to the number of shares of the company that they hold in their portfolios. During the first three months of 2018, the Bank of Nova Scotia acquired 27.6 percent of Silvergate Capital’s shares. Bank of Nova Scotia currently holds 14,750 shares of the company’s stock, which are worth a combined total of $2,221,000 after purchasing an extra 3,190 shares during the most recent quarter.
This brings the total number of shares owned by the Bank of Nova Scotia to 14,750. Over the first three months of the year, Van ECK Associates Corporation increased the proportion of Silvergate Capital which is owned by 16.6%. The most recent quarter saw Van Eck Associates Corp acquire 7,360 extra shares of the firm’s stock, bringing the total number of shares directly owned by the company to 51,688, with a value of $7,782,000. This brings the total number of shares directly owned by the company to 51,688. Charles Schwab Investment Management Inc. boosted the proportion of Silvergate Capital in which it was invested by 14.7% during the fourth quarter. Charles Schwab Investment Management Inc. is now the owner of 206,210 shares of the business after purchasing an additional 26,415 shares during the most recent quarter. The total value of the company’s stock held by Charles Schwab Investment Management Inc. is $30,561,000. The New York State Common Retirement Fund boosted the proportion of Silvergate Capital that it owned by 6.5% throughout the first three months of the year.
The New York State Common Retirement Fund has 94,588 shares of the company’s stock, which are currently valued at $14,242,000 after purchasing an additional 5,735 shares during the preceding quarter. These shares were bought to bring the fund’s total number of shares to a total of 94,588. Last but certainly not least, Renaissance Technologies LLC expanded its holdings in Silvergate Capital during the fourth quarter by purchasing more shares at a price of around $26,083,000. This is not to say that this is the least important development. 71.79% of the company’s shares are held in institutional ownership. SI began trading on Monday at $91.07. There is a ratio of 0.57 debt for every dollar of equity, 0.25 for current assets to current liabilities, and 0.19 for quick assets.
The ratio of current assets to current liabilities is 0.25. The company has a price-to-earnings ratio of 26.32, a price-to-earnings-to-growth ratio of 0.54, and a beta value of 3.09. These ratios measure how expensive a stock is concerning its earnings. It is estimated to be worth $2.88 billion. On July 19, the most current quarterly report for Silvergate Capital (NYSE: SI) was published and made available for the general public to review. The company said it had earnings per share for the quarter of $1.13, which is $0.31 more than the average estimate of $0.82 per share for the quarterly earnings. The net margin for Silvergate Capital came in at 45.70 percent, and the company’s return on equity was 7.85 percent. Compared to the prior year’s results for the same quarter, the company’s earnings per share came in at $0.80.
Analysts who work on the sell side of the market anticipate that Silvergate Capital will report earnings of 5.08 cents per share in 2018. Individual consumers, as well as commercial enterprises located in the United States, are welcome to utilize the products and services that are made available by Silvergate Bank. Silvergate Capital Corporation, which also acts as a holding company for the bank, is the entity that owns and manages Silvergate Bank. The company will deal with demand deposit accounts that earn interest, demand deposit accounts that do not earn interest, money market deposit accounts, savings deposit accounts, and certificates of deposit.
