Loblaw Companies Limited (L.TO) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Loblaw has a consensus “Moderate Buy” rating, with five buys, one strong buy and two holds. The average 12-month price target is C$71.44.
• Insiders have been selling shares: Company insiders sold 324,121 shares worth approximately C$20.1 million over the last 90 days, while insiders still own 53.77% of the stock.
• The company reported solid quarterly results and pays a modest dividend: Loblaw posted C$0.66 in quarterly EPS on C$15.05 billion in revenue, and its annualized dividend is C$0.62 per share, yielding about 0.9%.

Shares of Loblaw Companies Limited (TSE:L - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the eight research firms that are covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is C$71.44.

Several research analysts recently commented on the stock. TD set a C$75.00 target price on shares of Loblaw Companies and gave the stock a "buy" rating in a research note on Thursday, September 10th. TD Securities upgraded shares of Loblaw Companies to a "strong-buy" rating in a report on Wednesday, July 29th. National Bank Financial set a C$70.00 price target on shares of Loblaw Companies and gave the company an "outperform" rating in a research report on Thursday, September 10th. BMO Capital Markets increased their price target on shares of Loblaw Companies from C$70.00 to C$73.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Finally, Scotia raised their price target on shares of Loblaw Companies from C$64.00 to C$67.00 and gave the stock a "sector perform" rating in a report on Friday, July 31st.

Insider Activity at Loblaw Companies

In other Loblaw Companies news, insider David Markwell sold 56,240 shares of the company's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of C$62.07, for a total transaction of C$3,490,816.80. Also, insider Per Bank sold 203,623 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of C$62.01, for a total value of C$12,626,662.23. Insiders have sold a total of 324,121 shares of company stock worth $20,118,530 in the last 90 days. Company insiders own 53.77% of the company's stock.

Loblaw Companies Price Performance

Shares of Loblaw Companies stock opened at C$68.72 on Tuesday. The company has a debt-to-equity ratio of 151.15, a current ratio of 1.06 and a quick ratio of 0.68. The business's 50 day simple moving average is C$62.54 and its two-hundred day simple moving average is C$63.06. The stock has a market capitalization of C$79.41 billion, a P/E ratio of 29.12, a price-to-earnings-growth ratio of 3.23 and a beta of 0.02. Loblaw Companies has a one year low of C$54.44 and a one year high of C$70.23.

Loblaw Companies (TSE:L - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported C$0.66 earnings per share for the quarter. The firm had revenue of C$15.05 billion during the quarter. Loblaw Companies had a return on equity of 25.25% and a net margin of 4.32%. Analysts forecast that Loblaw Companies will post 9.12 EPS for the current year.

Loblaw Companies Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, October 1st were paid a $0.1552 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.62 annualized dividend and a dividend yield of 0.9%. Loblaw Companies's dividend payout ratio (DPR) is presently 24.51%.

About Loblaw Companies

Loblaw is Canada's food and pharmacy leader, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. With more than 2,800 corporate franchised and Associate-owned locations, Loblaw, its franchisees and Associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada's largest private sector employers. Loblaw's purpose - Live Life Well® - puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores.

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