Toronto Dominion Bank (NYSE:TD) Hits New 52-Week High – Still a Buy?

Toronto Dominion Bank (The) (NYSE:TD) (TSE:TD) hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $126.16 and last traded at $125.7250, with a volume of 32,746 shares. The stock had previously closed at $125.78.

Toronto Dominion Bank News Roundup

Here are the key news stories impacting Toronto Dominion Bank this week:

• Positive Sentiment: TD Canada Trust raised its prime rate by 25 basis points to 4.70%, matching increases from RBC, CIBC and BMO. Higher lending rates can support net interest income and loan profitability, although they may also increase repayment pressure on borrowers. TD Canada Trust announces change to TD Prime Rate
• Positive Sentiment: TD launched a mobile-app feature that allows customers to move money from another financial institution into a TD account more quickly and easily. The initiative could improve customer acquisition, deposit growth and digital engagement, though its immediate earnings impact is likely limited. TD makes moving money to a TD account faster and easier
• Neutral Sentiment: TD Asset Management announced risk-rating changes for certain TD exchange-traded funds. The changes affect specific ETF products and are not expected to materially alter the bank’s overall earnings outlook. TD Asset Management announces risk rating changes
• Neutral Sentiment: TD Bank U.S. appointed Amit Sahasrabudhe as chief operating officer. His background in financial-services operations, technology and business transformation may support execution, but the leadership change is not an immediate financial catalyst. TD appoints Amit Sahasrabudhe as U.S. COO
• Neutral Sentiment: The TD Charitable Foundation opened applications for its 2027 Housing for Everyone program, offering $10 million in grants. The announcement supports TD’s community and reputation objectives but should have little direct effect on valuation. TD Housing for Everyone grants
• Negative Sentiment: Marco Re reportedly filed a lawsuit against TD Bank involving a $35 million legacy dispute. The claim introduces legal and reputational uncertainty, although the ultimate financial impact is not yet clear. Marco Re sues TD Bank over $35 million legacy dispute

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on TD shares. Keefe, Bruyette & Woods initiated coverage on shares of Toronto Dominion Bank in a report on Friday, August 21st. They issued a “market perform” rating for the company. Wall Street Zen upgraded shares of Toronto Dominion Bank from a “sell” rating to a “hold” rating in a research report on Saturday, August 22nd. Finally, Weiss Ratings raised shares of Toronto Dominion Bank from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Wednesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $148.00.

Toronto Dominion Bank Trading Up 0.6%

The firm has a market capitalization of $207.36 billion, a price-to-earnings ratio of 18.91, a P/E/G ratio of 1.26 and a beta of 0.75. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.03 and a current ratio of 1.03. The company has a 50 day moving average price of $120.33 and a two-hundred day moving average price of $110.30.

Toronto Dominion Bank (NYSE:TD) (TSE:TD) last released its quarterly earnings results on Thursday, August 27th. The bank reported $1.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.74 by $0.24. The firm had revenue of $12.07 billion for the quarter, compared to analysts’ expectations of $10.70 billion. Toronto Dominion Bank had a net margin of 14.41% and a return on equity of 14.88%. The firm’s revenue for the quarter was up 6.9% compared to the same quarter last year. During the same quarter last year, the company earned $2.20 EPS. On average, research analysts forecast that Toronto Dominion Bank will post 7.04 EPS for the current year.

Toronto Dominion Bank Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Saturday, October 31st. Shareholders of record on Friday, October 9th will be issued a dividend of C$1.12 per share. This represents a $4.48 annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend is Friday, October 9th. Toronto Dominion Bank’s dividend payout ratio (DPR) is presently 46.81%.

Toronto Dominion Bank declared that its board has initiated a stock buyback plan on Wednesday, September 30th that authorizes the company to buy back $7.14 billion in shares. This buyback authorization authorizes the bank to buy up to 3.5% of its shares through open market purchases. Share buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Toronto Dominion Bank

Institutional investors and hedge funds have recently modified their holdings of the stock. Cornerstone Financial Management LLC lifted its stake in Toronto Dominion Bank by 77.2% in the 2nd quarter. Cornerstone Financial Management LLC now owns 218 shares of the bank’s stock valued at $26,000 after buying an additional 95 shares in the last quarter. Pension & Wealth Management Advisors Inc. acquired a new stake in Toronto Dominion Bank in the 3rd quarter worth about $41,000. Continuum Advisory LLC acquired a new stake in Toronto Dominion Bank in the 2nd quarter worth about $43,000. Compass Wealth Management LLC purchased a new stake in Toronto Dominion Bank during the 3rd quarter worth approximately $41,000. Finally, NBH Bank purchased a new stake in Toronto Dominion Bank during the 2nd quarter worth approximately $73,000. Hedge funds and other institutional investors own 52.37% of the company’s stock.

Toronto Dominion Bank Company Profile

Toronto-Dominion Bank, operating as TD Bank Group, is a Canadian financial services company headquartered in Toronto, Ontario. The institution traces its history to the Bank of Toronto, founded in 1855, and the Dominion Bank, founded in 1869; the two banks merged in 1955 to form Toronto-Dominion Bank.

TD provides a broad range of banking and financial services through its Canadian and U.S. operations. Its offerings include personal and business deposit accounts, mortgages, consumer and commercial lending, credit cards, investment products, insurance, wealth management and financial advice.