It has not been a good few weeks for Toronto Dominion Bank (TSE:TD) (NYSE:TD). This bank stock has been pummeled by a range of probes, lawsuits, fines, and more just over the last month. The latest trouble for TD Bank comes from issues of compliance with anti-money laundering regulations. That’s naturally a major problem, and it comes with a hefty dollar sign attached: up to $2 billion in cash penalties for that failure.
Canadian banks are generally regarded as ironclad, very safe options, particularly for investors. Things like this just don’t happen much in the Canadian market, but when they do, they’re a disaster.
That’s not all the trouble TD Bank is facing, though. There’s also some trouble connected to a client solicitation scheme where TD Bank employees offered special rates to pull customers from Crescent Point Private Wealth, a Raymond James affiliate.
But TD Bank is working to shore up its image, offering grants to two Rhode Island charities. Sojourner House and Crossroads Rhode Island pulled in a combined $425,000 from TD Bank to help drive a subsidized housing program, a big deal given the rising housing crunch in the United States.
Is TD a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TD stock based on five Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 1.23% loss in its share price over the past year, the average TD price target of C$87.03 per share implies 11.9% upside potential.
Is TD the Right Stock to Buy for Passive Income?
Before you hurry to invest in TD, think about the following:
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