FirstService (TSE:FSV) Stock Passes Below 200 Day Moving Average - Time to Sell?

Key Points

• FirstService's stock fell below its 200-day moving average, trading as low as C$188.01 and last at C$191.18 versus the 200-day MA of C$225.39, a technical signal that may concern momentum traders.
• Analysts remain constructive: TD Securities raised its price target to C$217 and the consensus rating is "Strong Buy" with a C$217 average target.
• Insider selling and valuation metrics are notable—directors sold shares recently (10,000 at C$214) and insiders reduced holdings, while the stock shows a high P/E of 60.31 and a debt-to-equity ratio of 100.79.

FirstService Co. (TSE:FSV - Get Free Report) NASDAQ: FSV's stock price passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of C$225.39 and traded as low as C$188.01. FirstService shares last traded at C$191.18, with a volume of 65,278 shares trading hands.

Analyst Upgrades and Downgrades

Separately, TD Securities boosted their price target on shares of FirstService from C$211.00 to C$217.00 and gave the stock a "buy" rating in a report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Strong Buy" and a consensus price target of C$217.00.

FirstService Price Performance

The company has a debt-to-equity ratio of 100.79, a quick ratio of 1.25 and a current ratio of 15.15. The stock has a market capitalization of C$8.79 billion, a PE ratio of 60.31, a price-to-earnings-growth ratio of 107.75 and a beta of 0.75. The stock's 50 day moving average is C$208.60 and its two-hundred day moving average is C$225.39.

FirstService (TSE:FSV - Get Free Report) NASDAQ: FSV last posted its quarterly earnings data on Wednesday, February 4th. The company reported C$1.88 EPS for the quarter. The company had revenue of C$1.82 billion during the quarter. FirstService had a return on equity of 11.33% and a net margin of 2.65%. On average, equities analysts anticipate that FirstService Co. will post 7.5161189 EPS for the current fiscal year.

Insider Activity at FirstService

In related news, Director D. Scott Patterson sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of C$214.00, for a total transaction of C$2,140,000.00. Following the completion of the sale, the director directly owned 135,000 shares in the company, valued at approximately C$28,890,000. The trade was a 6.90% decrease in their ownership of the stock. Insiders sold 24,700 shares of company stock worth $5,296,022 in the last three months. 10.26% of the stock is currently owned by insiders.

About FirstService

FirstService Corp operates in two business divisions: FirstService Residential and FirstService Brands. FirstService Residential has service contracts to manage thousands of residential communities, including high-, medium-, and low-rise condominiums and co-operatives, and generates most of the company's revenue. FirstService Brands provides property services to residential and commercial customers through the following brands: California Closets; Paul Davis Restoration; CertPro Painters; Pillar to Post; Floor Coverings International; College Pro Painters; and Service America.

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