TD Bank Short Position
TD Bank has become the subject of the largest short position in the global banking industry, with short sellers betting against the Canadian lender to the tune of approximately $3.7 billion. The bank’s position at the top of the list of biggest bank shorts has led to speculation regarding the reasons behind the negative sentiment. One possible factor is TD’s exposure to the Canadian housing slowdown, which analysts suggest could be a growing concern for investors. TD’s ties to the US market through its investment in Charles Schwab Corp. and a planned regional bank acquisition could also be causing worry. Furthermore, there is a general skittishness towards the banking sector after recent events such as the Credit Suisse-UBS Group merger and the failure of three US regional banks.
TD’s short interest as a percentage of shares available for trading, or float, remains relatively low at 3.3%, putting it at third place among the top 20 US and Canadian financial firms. TD’s position at the top of the list comes as it seeks to close a $13.4 billion deal for First Horizon Corp., a move that would allow the lender to expand its footprint in the US. The bank is expected to renegotiate the deal after the recent bout of turmoil among US regional banks drove share prices lower in March.
TD’s position as the largest bank short globally is a result of a combination of factors, including concerns over the Canadian housing slowdown and TD’s exposure to the US market. However, analysts warn that short-seller profits can be short-lived and dependent on market sentiment. TD’s short position comes at a time when the bank is seeking to expand its footprint in the US and renegotiate a $13.4 billion deal for First Horizon Corp.
TD Stock Forecast & Analysis
The average analyst target price for Toronto Dominion Bank (TD Bank) is CAD 97.25 over the next 12 months, according to 20 analysts. TD Bank’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of TD Bank is Neutral, based on 5 positive signals and 5 negative signals. TD Bank’s stock price was CAD 82.68 at the last closing, which is up +4.47% over the past week, but down -7.15% over the past month and -16.88% over the last year.
