Empire (TSE:EMP.A) Stock Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Empire Company Limited's shares have risen above the 200-day moving average, reaching a current trading price of C$53.31, significantly increasing from the average of C$50.81.
• Analyst price targets for Empire have been raised, with recommendations ranging from a "buy" rating at C$55.00 to a "hold" rating with a target of C$57.57.
• The company recently increased its quarterly dividend from $0.20 to $0.22 per share, reflecting a yield of 1.7% and a dividend payout ratio of 27.30%.

Empire Company Limited (TSE:EMP.A - Get Free Report) passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$50.81 and traded as high as C$53.87. Empire shares last traded at C$53.31, with a volume of 308,974 shares.

Analyst Upgrades and Downgrades

EMP.A has been the subject of a number of recent research reports. Desjardins increased their price objective on shares of Empire from C$50.00 to C$55.00 and gave the stock a "buy" rating in a research note on Tuesday, June 17th. Scotiabank increased their price target on shares of Empire from C$62.00 to C$63.00 and gave the stock an "outperform" rating in a research report on Thursday, August 21st. Royal Bank Of Canada lifted their price target on shares of Empire from C$56.00 to C$61.00 and gave the stock a "sector perform" rating in a report on Friday, June 20th. TD Securities lifted their price target on shares of Empire from C$48.00 to C$58.00 and gave the company a "hold" rating in a research note on Friday, June 20th. Finally, National Bankshares set a C$59.00 target price on shares of Empire and gave the stock a "sector perform" rating in a research report on Friday, August 22nd. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of C$57.57.

Empire Stock Up 1.2%

The company has a current ratio of 0.79, a quick ratio of 0.29 and a debt-to-equity ratio of 135.51. The company has a market capitalization of C$12.35 billion, a PE ratio of 18.20, a price-to-earnings-growth ratio of 16.20 and a beta of 0.33. The business's 50-day simple moving average is C$55.55 and its 200-day simple moving average is C$51.01.

Empire Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Thursday, July 31st were paid a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Tuesday, July 15th. This is a positive change from Empire's previous quarterly dividend of $0.20. Empire's dividend payout ratio is 27.30%.

Insider Buying and Selling at Empire

In related news, Director Michael Bennett Medline sold 45,015 shares of Empire stock in a transaction on Monday, July 14th. The shares were sold at an average price of C$56.51, for a total value of C$2,543,797.65. Also, Senior Officer Sandra Sanderson sold 2,380 shares of Empire stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of C$56.00, for a total transaction of C$133,280.00. Over the last ninety days, insiders have sold 206,858 shares of company stock worth $11,591,674. 2.18% of the stock is currently owned by insiders.

About Empire

Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiary Sobeys and represents nearly all of the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations.