IOIS: Royal Bank of Canada AUD 6NC5 FXD-FRN and /or FRN benchmark

IOIS: Royal Bank of Canada AUD 6NC5 FXD-FRN and /or FRN benchmark

Canada Pension Plan Investment Board (CPPIB) recently increased its stake in Royal Bank of Canada (RY) by 104.6%, now holding over 6.3 million shares valued at approximately $715 million [1]. This significant increase comes as RY reported an earnings per share (EPS) of $2.79, surpassing analyst expectations of $2.36, and revenue reaching $12.26 billion.

Analyst ratings for RY are mixed, with an average rating of "Moderate Buy" and a consensus target price of $193.00 [1]. National Bank Financial downgraded RY from an "outperform" rating to a "sector perform" rating, while Scotiabank issued a "sector outperform" rating [1]. Other hedge funds, including Tower Research Capital LLC, also increased their holdings in RY [1].

The stock's recent performance has been robust, with shares opening at $146.02 and a market capitalization of $205.19 billion. The stock has a PE ratio of 15.42, a P/E/G ratio of 1.68, and a beta of 0.89. Royal Bank of Canada has a 52-week low of $106.10 and a 52-week high of $147.64 [1].

Investors should monitor RY's performance closely, given the recent stake increase and positive earnings report. The company's strong financial health and diverse business segments, including Personal & Commercial Banking and commercial lending, make it a notable player in the financial services sector. Historical data shows that RY has delivered positive short-to-medium-term returns following earnings beats, with varying win rates across time horizons, suggesting that strategic timing aligned with earnings outperformance could enhance returns.



References:
[1] https://www.marketbeat.com/instant-alerts/filing-canada-pension-plan-investment-board-raises-stake-in-royal-bank-of-canada-ry-2025-08-29/