TD Bank Stock Soars 1.54% to 2023 High on Restructuring, Earnings

The Toronto-Dominion Bank (TD) has seen a notable surge in its stock price, rising 0.77% over the past three days, with a cumulative increase of 5.31%. Today, the share price reached its highest level since February 2023, marking an intraday gain of 1.54%.

The strategy of buying TD shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 16.78%, slightly underperforming the market's average annual return of 18.33% over the same period. This result suggests that while the strategy provided some growth, it was somewhat conservative and missed out on broader market gains.

TD's recent stock performance can be attributed to several key factors. The bank's restructuring program, announced last week, has been a significant driver. This program is designed to enhance operational efficiency and has already resulted in a 4.5% increase in TD's stock price on the NYSE. The restructuring includes winding down a $3 billion investment portfolio and reducing its workforce by 2%, which translates to approximately 2,000 jobs. These cost-cutting measures are aimed at streamlining operations and improving profitability.

Additionally, TD Bank's Q2 earnings performance has been a major contributor to its stock rally. As of May 22, 2025, the bank significantly exceeded its Q2 earnings expectations, leading to a 3.5% surge in its stock price. This strong financial performance has bolstered investor confidence in the bank's future prospects, further driving its stock price upward.