Algoma Central (TSE:ALC) Stock Passes Below 50-Day Moving Average - Should You Sell?

Key Points

• Technical signal: Algoma Central's stock dipped below its 50‑day moving average (50‑day MA C$21.00) to C$20.69, trading down roughly 3.9% on the session.
• Valuation and profitability: The company has a low PE ratio of 5.86, reported quarterly EPS of C$2.32 with a 15.49% ROE and 18.79% net margin, and analysts expect about C$1.90 EPS for the year.
• Dividend lift: Algoma increased its quarterly dividend to C$0.21 (C$0.84 annualized), a yield of about 4.1% with a payout ratio near 22.7%.

Algoma Central Co. (TSE:ALC - Get Free Report)'s stock price passed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of C$21.00 and traded as low as C$20.69. Algoma Central shares last traded at C$20.69, with a volume of 12,130 shares.

Algoma Central Trading Down 3.9%

The firm has a 50 day moving average of C$21.00 and a 200 day moving average of C$19.09. The firm has a market cap of C$839.35 million, a PE ratio of 5.86 and a beta of 0.82. The company has a quick ratio of 2.06, a current ratio of 0.71 and a debt-to-equity ratio of 53.20.

Algoma Central (TSE:ALC - Get Free Report) last released its earnings results on Thursday, March 5th. The company reported C$2.32 earnings per share (EPS) for the quarter. Algoma Central had a return on equity of 15.49% and a net margin of 18.79%. Equities analysts anticipate that Algoma Central Co. will post 1.898977 earnings per share for the current year.

Algoma Central Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Monday, March 2nd were issued a $0.21 dividend. This is an increase from Algoma Central's previous quarterly dividend of $0.20. The ex-dividend date of this dividend was Friday, February 13th. This represents a $0.84 annualized dividend and a yield of 4.1%. Algoma Central's payout ratio is 22.66%.

About Algoma Central

Algoma Central Corp owns and operates the fleet of dry and liquid bulk carriers operating on the Great Lakes, St. Lawrence Waterway. The company's Canadian flag fleet consists of self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. The company operates its business through six segments that are Domestic Dry-Bulk, Product Tankers, Ocean SelfUnloaders, Corporate, Investment Properties, and Global Short Sea Shipping. The company earns revenues from marine operations through contracts of affreightment, time charters, and pool revenue.

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