Atria Wealth Solutions Inc. has acquired a new stake in Toronto Dominion Bank (NYSE: TD) during the second quarter of 2023, purchasing 3,171 shares valued at approximately $233,000. This investment reflects a growing interest among institutional investors in the Canadian banking sector, particularly in Toronto Dominion Bank, which has recently seen significant changes in its shareholder composition.
Several other institutional investors have also adjusted their holdings in Toronto Dominion Bank. Vanguard Group Inc. increased its stake by 0.7% in the first quarter, now owning 74,634,839 shares valued at $4.47 billion after acquiring an additional 516,288 shares. Similarly, TD Asset Management Inc. grew its position by 0.4%, now holding 37,035,579 shares worth $2.22 billion. Mackenzie Financial Corp. expanded its holdings by 4.5%, owning 29,252,736 shares valued at $1.75 billion. Notably, Federation des caisses Desjardins du Quebec significantly increased its stake by 48.9%, now holding 14,785,565 shares worth $886.17 million.
The Manufacturers Life Insurance Company also raised its position in Toronto Dominion Bank by 17.7%, owning 13,700,503 shares valued at $825.44 million. Currently, institutional investors collectively own 52.37% of the bank’s stock, indicating strong institutional confidence in the company.
Analyst Ratings and Market Performance
Recent analyst reports have provided mixed ratings on Toronto Dominion Bank. Wall Street Zen downgraded the stock from a “hold” rating to a “sell” on September 26, 2023. In contrast, Desjardins upgraded its rating from “hold” to “buy” on August 13, 2023. Weiss Ratings maintained a “buy (b)” rating, while Royal Bank of Canada upgraded its assessment from “sector perform” to “outperform” on October 3, 2023. Currently, five analysts rate the stock as a Buy, three as Hold, and one as Sell, leading to an average rating of “Hold” with a target price of $93.00.
As of Thursday, Toronto Dominion Bank’s stock opened at $80.87, reflecting a 0.6% increase. The company’s fifty-day simple moving average stands at $77.37, while its 200-day average is $71.43. The stock has fluctuated within a twelve-month range, hitting a low of $51.25 and a high of $82.08. With a market capitalization of $137.54 billion, the bank’s price-to-earnings (P/E) ratio is measured at 9.45.
Financial Results and Dividend Announcement
Toronto Dominion Bank recently reported its quarterly earnings results on August 28, 2023. The bank announced earnings per share (EPS) of $1.91, surpassing analysts’ expectations of $1.46 by $0.45. The bank achieved a net margin of 16.40% and a return on equity of 13.59%. Revenue for the quarter was reported at $10.12 billion, although it fell short of analysts’ expectations of $13.73 billion. Year-over-year, revenue increased by 7.9% compared to the previous year when the bank posted an EPS of $2.05.
In a positive development for shareholders, Toronto Dominion Bank announced a quarterly dividend of $1.05, set to be paid on October 31, 2023. The record date for this dividend is October 10, 2023, representing an increase from the prior quarterly dividend of $0.76. This translates to an annualized dividend of $4.20 and a yield of 5.2%. The bank’s current dividend payout ratio stands at 35.75%, reflecting a commitment to returning value to its shareholders.
Toronto-Dominion Bank, together with its subsidiaries, provides a wide range of financial products and services across Canada, the United States, and internationally. The bank operates through four segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. As the financial landscape continues to evolve, the actions of institutional investors and the bank’s financial performance will be closely monitored by market participants.
