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The Toronto-Dominion Bank (TSX:TD) announced on Tuesday, March 23, that it is acquiring Headlands Tech Global Markets, LLC, a US-based electronic fixed income trading firm. The deal is still subject to concluding obligations.
After concluding this acquisition, TD Securities expects to boost its electronic bond trading platform and expand its footprint in US corporate and municipal fixed income markets.
Both parties have projected that this transaction will be completed by mid-2021.
Let us check out the lender stock’s performance and financials in the wake of the above deal:
Toronto-Dominion Bank (TSX: TD)
The bank stock has sharply improved by 67.60 per cent from its 52-week low of C$ 49.01, when it tumbled on March 23, 2020, at the height of the pandemic. Its one-year return has also climbed by 54.66 per cent, guided by strong financial results from last two quarters.
This blue-chip stock has been offering a constant dividend of C$ 0.79 for the last five quarters. It has an impressive dividend yield of 3.847 per cent. The giant creditor has a current market cap of C$ 149.38 billion.
Its 10-day average volume is 7.55 million shares on the Toronto Stock Exchange (TSX). It is delivering 13.44 per cent returns on equity.
It has grown over 14 per cent this year, outperforming the S&P TSX Diversified Banks (Sub Industry) Index that increased by 0.32 per cent year-to-date (YTD).
TD Bank stock is trading at C$ 82.14 per common share, with a price-to-earnings ratio of 12.50 and the price-to-book ratio of 1.664.
The stock could see heavy buying for this week on the back of its securities segment’s latest acquisition agreement.
TD Bank's One-Year Stock Performance Chart. (Source: EODHD/Others)
In the first fiscal quarter of 2021, the bank posted a profit of C$ 1.83 per stock or 3.4 billion, up approximately 10 per cent year-over-year (YoY) against C$ 3.1 billion in the first quarter of fiscal 2020.
The company also recorded a lower provision for credit losses, dropped by C$ 249 million YoY.
The bank expects a stimulus package from the upcoming federal government spring budget. It also anticipates the range of financial aid in between C$ 70 billion to C$ 100 billion over the next three years.
