Dollarama (TSE:DOL) Share Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Dollarama's share price has recently surpassed its 200-day moving average, reaching a last traded price of C$189.32.
• Analysts have mixed views on the stock, with a consensus rating of "Moderate Buy" and target prices ranging from C$195.00 to C$212.00.
• The company announced a quarterly dividend of $0.1058, yielding 0.2%, with a low dividend payout ratio of 8.77% indicating room for growth.

Dollarama Inc. (TSE:DOL - Get Free Report)'s share price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$174.82 and traded as high as C$189.37. Dollarama shares last traded at C$189.32, with a volume of 476,038 shares traded.

Wall Street Analyst Weigh In

DOL has been the subject of a number of analyst reports. Canaccord Genuity Group reduced their price objective on shares of Dollarama from C$200.00 to C$195.00 and set a "hold" rating for the company in a report on Thursday, August 28th. Royal Bank Of Canada lifted their price target on shares of Dollarama from C$207.00 to C$212.00 and gave the company an "outperform" rating in a report on Tuesday, August 26th. UBS Group raised their target price on shares of Dollarama from C$165.00 to C$196.00 in a report on Thursday, June 12th. Stifel Nicolaus boosted their target price on shares of Dollarama from C$162.50 to C$190.00 in a report on Thursday, June 12th. Finally, Desjardins set a C$205.00 target price on Dollarama and gave the stock a "buy" rating in a research report on Thursday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Dollarama presently has an average rating of "Moderate Buy" and a consensus target price of C$191.29.

Dollarama Price Performance

The stock has a market capitalization of C$52.67 billion, a price-to-earnings ratio of 42.28, a price-to-earnings-growth ratio of 1.93 and a beta of 0.13. The company's 50 day moving average is C$190.00 and its 200 day moving average is C$175.33. The company has a current ratio of 1.43, a quick ratio of 0.08 and a debt-to-equity ratio of 369.36.

Dollarama Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 8th. Stockholders of record on Friday, August 8th were paid a $0.1058 dividend. 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 8.77%.

Insider Activity

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

Dollarama Company Profile

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.