Daiwa Securities Group (TYO:8601) has raised its price target by 16.76% to 884.68

The average one-year target price for Daiwa Securities Group (TYO:8601) has been revised to 884.68 per share. This represents a significant increase of 16.76% from the previous estimate of 757.69 dated October 31, 2023.

This price target is an average of several analyses provided by experts. The most recent targets range from a minimum of 656.50 to a maximum of 1,197.00 per share. Interestingly, the average price target represents a decrease of 7.62% compared to the last reported closing price of 957.70 per share, which makes me question whether analysts are being too conservative.

Daiwa maintains a dividend yield of 3.24%

At the current price, the company's dividend yield is 3.24%. Additionally, its dividend payout ratio is 0.51. This ratio indicates what proportion of earnings is distributed as dividends. A ratio of 0.51 means that the company is paying out approximately half of its earnings, which seems quite reasonable and sustainable.

The 3-year dividend growth rate is 0.55%, which shows that it has increased its dividend over time, although not spectacularly. Personally, I would prefer to see more robust growth to stay ahead of inflation.

What is happening with the funds' sentiment?

There are 221 funds or institutions reporting positions in Daiwa Securities Group. This represents an increase of 12 owners or 5.74% in the last quarter, which could indicate a growing institutional interest.

The average weight of the portfolio of all funds dedicated to 8601 is 0.11%, an increase of 3.48%. Total shares held by institutions increased over the past three months by 2.67% to 122,808,000 shares. I find this gradual but steady increase in institutional interest interesting.

Among the main shareholders are funds such as Vanguard Total International Stock Index Fund with 19,089,000 shares (1.34% ownership), Vanguard International Value Fund with 13,582,000 shares (0.95%), and several important ETFs such as iShares Core MSCI EAFE ETF and iShares MSCI Japan ETF, which have significantly increased their positions in the last quarter.

Most of these large funds have increased their exposure to Daiwa during the last quarter, which could be a positive sign regarding the company's prospects. However, I wonder if this institutional optimism is really justified considering that the average target price remains below the current market price.