Dollarama (TSE:DOL) Reaches New 1-Year High - Still a Buy?

Key Points

• Dollarama's share price reached a new 52-week high, trading at C$197.02 during mid-day trading on Monday, with a significant volume of 213,609 shares exchanged.
• Multiple brokerages have increased their price targets for Dollarama, with Jefferies raising theirs from C$180.00 to C$223.00 and Royal Bank of Canada lifting theirs from C$190.00 to C$207.00.
• The company recently announced a quarterly dividend of $0.1058, translating to an annualized dividend yield of 0.2%, with a low dividend payout ratio of 9.42%.

Dollarama Inc. (TSE:DOL - Get Free Report)'s share price hit a new 52-week high on Monday . The company traded as high as C$197.02 and last traded at C$196.71, with a volume of 213609 shares. The stock had previously closed at C$192.31.

Analysts Set New Price Targets

A number of brokerages have weighed in on DOL. Stifel Nicolaus increased their price target on Dollarama from C$162.50 to C$190.00 in a research note on Thursday, June 12th. Scotiabank increased their price target on Dollarama from C$175.00 to C$210.00 in a research note on Thursday, June 12th. TD Securities increased their price target on Dollarama from C$185.00 to C$210.00 and gave the stock a "buy" rating in a research note on Thursday, June 12th. CIBC increased their price target on Dollarama from C$174.00 to C$204.00 in a research note on Thursday, June 12th. Finally, Desjardins set a C$205.00 price target on Dollarama and gave the stock a "buy" rating in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of C$187.79.

Dollarama Trading Down 1.9%

The firm has a market capitalization of C$53.43 billion, a price-to-earnings ratio of 49.25, a P/E/G ratio of 1.93 and a beta of 0.56. The company has a debt-to-equity ratio of 369.36, a quick ratio of 0.08 and a current ratio of 1.43. The business has a fifty day moving average price of C$190.80 and a 200 day moving average price of C$170.74.

Dollarama Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 8th. Stockholders of record on Friday, August 8th were issued a dividend of $0.1058 per share. This represents a $0.42 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Friday, July 11th. Dollarama's dividend payout ratio is presently 9.42%.

Insiders Place Their Bets

In other news, Director Nicolas Hien sold 4,131 shares of the company's stock in a transaction on Friday, June 13th. The stock was sold at an average price of C$192.31, for a total transaction of C$794,433.02. Also, Director John Assaly sold 9,089 shares of the company's stock in a transaction on Thursday, June 19th. The stock was sold at an average price of C$189.28, for a total value of C$1,720,392.28. Following the sale, the director owned 973 shares of the company's stock, valued at approximately C$184,172.26. The trade was a 90.33% decrease in their ownership of the stock. Corporate insiders own 2.23% of the company's stock.

About Dollarama

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company's product offerings.