The Toronto-Dominion Bank (NYSE: TD) Seen Running Too Hot, Let’s Look At This More Closely

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RBC Global Asset Management, Inc. recently announced the acquisition of new stake in The Toronto-Dominion Bank (NYSE:TD). The institutional investor has increased its shareholding in the Financial company by 2.65% to 104.09 million shares with purchase of 2.68 million shares. This fresh investment now brings its stake to 5.77% valued currently at $4.64 billion. In addition, 1832 Asset Management LP raised its holdings by 2.12 million to 56.74 million shares. And The Vanguard Group, Inc. has lifted its position by 1.84% or 0.95 million shares – to 52.48 million shares.

With over 1.31 million The Toronto-Dominion Bank (TD) shares trading Tuesday and a closing price of $44.55 on the day, the dollar volume was approximately $58.23 million. The shares have shown a negative weekly performance of -3.24% and its price on 07/28/20 lost nearly -0.85%. Currently, there are 1.80B common shares owned by the public and among those 1.79B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 3 analysts who have offered their price forecasts for TD have a consensus price objective of $85.00. The analysts have set the share’s price value over the next 12 months at a high of $85.00 and a low of $85.00 should the stock experience a downside. Incidentally, analysts’ outlook for the The Toronto-Dominion Bank stock is 2.20 for the next 12 months. The average price target is 30.99% above its last price level and an upside to the estimated low will see the stock gain 47.59% over that period. But an upside of 47.59% will see the stock hit the forecast high price target while mean target price for the stock is $85.00.

The top 3 mutual fund holders in The Toronto-Dominion Bank are Vanguard Total International Stoc, RBC Canadian Dividend Fund, and Government Pension Fund – Global. Vanguard Total International Stoc owns 30.89 million shares of the company’s stock, all valued at over $1.38 billion. The company sold -0.83 million shares recently to bring their total holdings to about 1.71% of the shares outstanding. Government Pension Fund – Global bought 0.4 million shares to bring its total holdings to over 18.42 million shares at a value of $821.64 million. Government Pension Fund – Global now owns shares totaling to 1.02% of the shares outstanding.

Shares of The Toronto-Dominion Bank (NYSE: TD) opened at $44.60, down -$0.33 from a prior closing price of $44.93. However, the script later closed the day at $44.55, down -0.85%. The company’s stock has a 5-day price change of -3.24% and 7.58% over the past three months. TD shares are trading -20.63% year to date (YTD), with the 12-month market performance down to -24.25% lower. It has a 12-month low price of $33.74 and touched a high of $59.18 over the same period. Currently, 1.31 million shares have been traded, compared to an average intraday trading volume of 2.11 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.78%, -0.20%, and -10.12% respectively.

Institutional ownership of The Toronto-Dominion Bank (NYSE: TD) shares accounts for 66.70% of the company’s 1.80B shares outstanding. Mutual fund holders own 21.02%, while other institutional holders and individual stakeholders account for 30.71% and — respectively.

It has a market capitalization of $81.70B and a beta (3y monthly) value of 0.83. The stock’s trailing 12-month PE ratio is 10.49, while the earnings-per-share (ttm) stands at $4.25. The company has a debt-to-equity ratio at 3.50. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.10% over the week and 1.72% over the month.

Analysts forecast that The Toronto-Dominion Bank (TD) will achieve an EPS of $1.15 for the current quarter, $1.16 for the next quarter and $5.13 for 2019. The lowest estimate earnings-per-share for the quarter is $1.08 while analysts give the company a high EPS estimate of $1.21. Comparatively, EPS for the current quarter was $1.08 a year ago. Earnings per share for the fiscal year are expected to increase by 4.00%, and 20.80% over the next financial year. EPS should shrink at an annualized rate of -2.98% over the next five years, compared to 10.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 3 brokerage firm advisors rate The Toronto-Dominion Bank (TD) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 1 of the 3 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the TD, a number of firms have released research notes about the stock. CIBC stated their Neutral rating for the stock in a research note on July 24, 2020, with the firm’s price target at. BofA/Merrill coverage for the The Toronto-Dominion Bank (TD) stock in a research note released on March 13, 2020 offered a Neutral rating with a price target of. BofA/Merrill was of a view on February 04, 2020 that the stock is Buy, while CIBC gave the stock Neutral rating on November 21, 2019, issuing a price target of. BMO Capital Markets on their part issued Market Perform rating on August 30, 2019.

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