Chemtrade Logistics Income Fund (TSE:CHE.UN) Reaches New 12-Month High - Should You Buy?

Key Points

• New 52-week high: Chemtrade reached C$18.06 (last C$18.05) on strong volume, and analysts have been upgrading the stock to a consensus "Moderate Buy" with an average price target of C$19.00 and top targets as high as C$23.50.
• Dividend income: The fund declared a monthly C$0.06 dividend (ex-dividend April 30), implying roughly a 4.0% yield and a payout ratio of about 56.6%.
• Balance-sheet caution: the company shows high leverage (debt-to-equity of 128.02) and weak liquidity (current ratio 0.40, quick ratio 0.48), despite a P/E of 14.9 and C$2.04 billion market cap.

Chemtrade Logistics Income Fund (TSE:CHE.UN - Get Free Report)'s stock price reached a new 52-week high on Friday . The stock traded as high as C$18.06 and last traded at C$18.05, with a volume of 156981 shares trading hands. The stock had previously closed at C$17.80.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. National Bank Financial boosted their price objective on Chemtrade Logistics Income Fund from C$18.00 to C$23.50 and gave the company an "outperform" rating in a research report on Monday, April 13th. BMO Capital Markets upgraded shares of Chemtrade Logistics Income Fund from a "market perform" rating to an "outperform" rating and set a C$18.50 target price on the stock in a report on Thursday, April 23rd. Finally, Raymond James Financial raised shares of Chemtrade Logistics Income Fund from a "market perform" rating to an "outperform" rating and lifted their price target for the company from C$15.00 to C$21.00 in a research note on Tuesday, April 28th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of C$19.00.

Chemtrade Logistics Income Fund Stock Up 2.0%

The company has a debt-to-equity ratio of 128.02, a current ratio of 0.40 and a quick ratio of 0.48. The company has a market capitalization of C$2.04 billion, a price-to-earnings ratio of 14.88 and a beta of 0.65. The firm has a 50-day moving average price of C$15.87 and a two-hundred day moving average price of C$15.11.

Chemtrade Logistics Income Fund Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 29th will be paid a $0.06 dividend. The ex-dividend date is Thursday, April 30th. This represents a c) annualized dividend and a yield of 4.0%. Chemtrade Logistics Income Fund's payout ratio is presently 56.56%.

About Chemtrade Logistics Income Fund

Chemtrade Logistics Income Fund provides industrial chemicals and services to customers in North America and around the world. The company organized into four main operating segments: Sulphur Products and Performance Chemicals (SPPC), Water Solutions and Specialty Chemicals (WSSC), Electrochemicals, and Corporate. It generates maximum revenue from Electrochemicals segment. Chemtrade operates in Canada, the United States, and South America of which maximum revenue comes from the United States. SPPC markets, remove and produces merchant, regenerated and ultra-pure sulphuric acid, liquid sulphur dioxide, sodium hydrosulfite and provides other processing services.

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