EQB (TSE:EQB) Cut to Underperform at Raymond James Financial

Raymond James Financial lowered shares of EQB (TSE:EQB) from a market perform rating to an underperform rating in a research report released on Friday morning,BayStreet.CA reports. The firm currently has C$120.00 target price on the stock, down from their prior target price of C$136.00.

A number of other equities research analysts have also recently weighed in on EQB. Scotiabank lifted their price objective on EQB from C$122.00 to C$125.00 and gave the company a “sector perform” rating in a research note on Monday, June 1st. National Bank Financial boosted their price objective on EQB from C$120.00 to C$143.00 and gave the company a “sector perform” rating in a report on Thursday, August 13th. Jefferies Financial Group increased their target price on EQB from C$122.00 to C$129.00 and gave the stock a “hold” rating in a research note on Thursday, August 13th. Royal Bank Of Canada raised their target price on EQB from C$131.00 to C$146.00 and gave the company an “outperform” rating in a report on Friday. Finally, Desjardins dropped their target price on EQB from C$155.00 to C$150.00 and set a “buy” rating for the company in a research report on Friday. Six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, EQB presently has an average rating of “Hold” and a consensus price target of C$138.30.

EQB Stock Performance

TSE:EQB opened at C$125.60 on Friday. EQB has a fifty-two week low of C$83.93 and a fifty-two week high of C$150.32. The company has a 50 day moving average price of C$136.98 and a 200 day moving average price of C$123.66. The stock has a market capitalization of C$5.35 billion, a P/E ratio of -448.57, a PEG ratio of 0.34 and a beta of 0.92.

EQB (TSE:EQB) last announced its earnings results on Wednesday, August 26th. The company reported C$2.12 earnings per share (EPS) for the quarter. EQB had a negative return on equity of 0.07% and a negative net margin of 0.08%.The company had revenue of C$393.04 million for the quarter. Research analysts forecast that EQB will post 12.5988235 earnings per share for the current fiscal year.

EQB Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 30th were issued a dividend of $0.61 per share. This is a boost from EQB’s previous quarterly dividend of $0.59. The ex-dividend date was Monday, June 15th. This represents a $2.44 dividend on an annualized basis and a yield of 1.9%. EQB’s dividend payout ratio (DPR) is currently -828.57%.

Insider Activity at EQB

In other EQB news, Director Darren Lorimer sold 1,850 shares of the firm’s stock in a transaction that occurred on Thursday, July 16th. The shares were sold at an average price of C$149.00, for a total value of C$275,650.00. Following the completion of the transaction, the director owned 5,138 shares of the company’s stock, valued at C$765,562. This trade represents a 26.47% decrease in their position. Also, insider Loblaw Companies Limited purchased 16,000 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was acquired at an average price of C$124.91 per share, with a total value of C$1,998,560.00. Following the purchase, the insider owned 1,474,100 shares of the company’s stock, valued at approximately C$184,129,831. This represents a 1.10% increase in their ownership of the stock. In the last three months, insiders acquired 78,100 shares of company stock valued at $10,641,748 and sold 7,484 shares valued at $1,069,719. Company insiders own 29.02% of the company’s stock.

EQB News Roundup

Here are the key news stories impacting EQB this week:

• Positive Sentiment: Insider buying signals confidence: Loblaw Companies Limited purchased a combined 32,000 EQB shares in three transactions on August 24, 26 and 27, spending approximately C$4.2 million. Its ownership rose to 1.47 million shares, potentially providing a positive signal about the long-term outlook. EQB insider trading report
• Positive Sentiment: Several analysts remain bullish: BMO Capital maintained a Buy rating and C$145 target, while RBC raised its target to C$146 and kept an Outperform rating. Desjardins and CIBC also retained positive ratings with C$150 and C$154 targets, respectively. These targets imply substantial potential upside if EQB successfully integrates PC Financial. BMO analyst rating
• Neutral Sentiment: Analyst views are mixed: Raymond James downgraded EQB to Underperform and cut its price target to C$120 from C$136, offsetting the more optimistic recommendations from other banks. EQB analyst ratings
• Negative Sentiment: Third-quarter results raised credit concerns: EQB reported a C$127 million net loss after recording a C$219 million provision for credit losses tied largely to the PC Financial transaction. Although revenue reached C$393.04 million and adjusted EPS was reported at C$2.12, the large provision weakened profitability and reduced return on equity to 6.16%. MarketWatch EQB third-quarter loss article
• Negative Sentiment: Near-term execution risk has increased: Investors are weighing whether PC Financial’s expected diversification of deposits and revenue will ultimately offset integration costs and credit losses. The earnings-related decline reflects skepticism about the acquisition’s immediate financial impact. Investment Executive EQB results article

EQB Company Profile

EQB Inc (TSX: EQB) is a leading Canadian financial services company with approximately $151 billion in combined assets under management and administration. It is the parent company of Equitable Bank, the country’s seventh largest Schedule I bank by assets, which operates EQ Bank, Canada’s Challenger Bank. Our purpose is to remake banking so every Canadian gets ahead, every day. Since 1970, we have built thoughtful financial solutions that serve more than 4 million customers, turning everyday moments into meaningful progress.