Dollarama (OTCMKTS:DLMAF) Trading Down 7.3% - Should You Sell?

Key Points

• Shares down 7.3% intraday to $125.78 from $135.66 on Tuesday, with just 1,318 shares traded—about 70% below average volume.
• Analysts remain mostly positive, with a MarketBeat consensus of "Moderate Buy" (8 Buys, 1 Hold) following recent upgrades and reiterated buy/outperform ratings.
• The stock trades below its 50- and 200-day moving averages ($141.28 and $139.13), carries a high valuation (PE of 148.81) and elevated leverage (debt-to-equity 3.55), which may concern risk-conscious investors.

Dollarama Inc. (OTCMKTS:DLMAF - Get Free Report) traded down 7.3% during mid-day trading on Tuesday . The company traded as low as $125.00 and last traded at $125.78. 1,318 shares changed hands during trading, a decline of 70% from the average session volume of 4,373 shares. The stock had previously closed at $135.66.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Royal Bank Of Canada raised Dollarama to a "moderate buy" rating in a research report on Monday, March 16th. Zacks Research upgraded Dollarama to a "hold" rating in a research report on Monday, March 16th. Scotiabank reaffirmed an "outperform" rating on shares of Dollarama in a report on Friday, December 12th. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Dollarama in a research report on Friday, December 12th. Finally, TD Securities reissued a "buy" rating on shares of Dollarama in a report on Friday, December 12th. Eight analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy".

Dollarama Stock Down 7.9%

The company's 50 day simple moving average is $141.28 and its 200-day simple moving average is $139.13. The company has a debt-to-equity ratio of 3.55, a quick ratio of 0.23 and a current ratio of 1.09. The firm has a market capitalization of $34.12 billion and a PE ratio of 148.81.

Dollarama Company Profile

Dollarama Inc operates as a leading Canadian dollar store chain, offering a variety of everyday consumer goods at fixed price points. The company’s retail format emphasizes value and convenience, providing a one-stop shopping experience for cost-conscious customers. Merchandise spans multiple categories, including household items, food and consumables, health and beauty products, stationery, seasonal and party supplies, and toys.

Founded in 1992 by Laurent “Larry” Rossy, Dollarama opened its first location in Montreal, Quebec.

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