Dollarama (TSE:DOL) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• Dollarama's stock crossed its 200-day moving average, trading at C$187.34, with a peak of C$190.75 during the session.
• Analysts have mixed forecasts, with Scotiabank lowering its price target to C$205, while Jefferies raised it to C$223, reflecting differing opinions on the stock's potential.
• The company recently announced a quarterly dividend of $0.1058, yielding 0.2%, and insiders, including a director, have sold significant shares, indicating possible shifts in confidence.

Shares of Dollarama Inc. (TSE:DOL - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$176.32 and traded as high as C$190.75. Dollarama shares last traded at C$187.34, with a volume of 540,345 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Desjardins set a C$205.00 price objective on shares of Dollarama and gave the company a "buy" rating in a research note on Thursday, August 21st. CIBC reduced their target price on shares of Dollarama from C$204.00 to C$199.00 and set a "neutral" rating for the company in a report on Thursday, August 28th. TD Securities raised their price target on shares of Dollarama from C$185.00 to C$210.00 and gave the company a "buy" rating in a research report on Thursday, June 12th. National Bankshares dropped their price target on shares of Dollarama from C$213.00 to C$203.00 and set an "outperform" rating on the stock in a research report on Thursday, August 28th. Finally, BMO Capital Markets raised their price target on shares of Dollarama from C$170.00 to C$215.00 in a research note on Thursday, June 12th. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Dollarama presently has a consensus rating of "Moderate Buy" and an average price target of C$201.00.

Dollarama Trading Up 1.2%

The firm has a market capitalization of C$52.39 billion, a PE ratio of 42.05, a PEG ratio of 1.93 and a beta of 0.13. The company's 50-day moving average price is C$189.78 and its 200-day moving average price is C$177.14. The company has a debt-to-equity ratio of 369.36, a quick ratio of 0.08 and a current ratio of 1.43.

Dollarama Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 8th. Investors of record on Friday, August 8th were paid a dividend of $0.1058 per share. The ex-dividend date was Friday, July 11th. This represents a $0.42 dividend on an annualized basis and a yield of 0.2%. Dollarama's dividend payout ratio is currently 8.77%.

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.