Hammond Power Solutions (TSE:HPS.A) Stock Price Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• Hammond Power Solutions shares fell below their 200-day moving average, trading as low as C$245.26 before closing at C$249.24, down 5.7%.
• Despite the technical weakness, analysts remain bullish: all seven analysts rate the stock a Buy, with a consensus price target of C$371.86.
• The company reported quarterly revenue of C$324.8 million and earnings of C$2.76 per share, alongside a 28.43% return on equity and an 8.73% net margin.

Hammond Power Solutions Inc. (TSE:HPS.A - Get Free Report) shares passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$258.13 and traded as low as C$245.26. Hammond Power Solutions shares last traded at C$249.24, with a volume of 58,576 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on HPS.A. Acumen Capital lifted their target price on Hammond Power Solutions from C$345.00 to C$365.00 and gave the company a "buy" rating in a research report on Tuesday, June 30th. JPMorgan Chase & Co. set a C$430.00 price target on Hammond Power Solutions and gave the stock an "overweight" rating in a research report on Thursday, May 28th. Raymond James Financial set a C$405.00 price target on Hammond Power Solutions and gave the company an "outperform" rating in a research note on Tuesday, June 30th. Canaccord Genuity Group lifted their price objective on Hammond Power Solutions from C$226.00 to C$348.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, National Bank Financial upped their price objective on shares of Hammond Power Solutions from C$325.00 to C$355.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 10th. Seven analysts have rated the stock with a Buy rating, According to data from MarketBeat, Hammond Power Solutions has a consensus rating of "Buy" and an average price target of C$371.86.

Hammond Power Solutions Stock Down 5.7%

The company has a 50-day moving average of C$295.06 and a 200-day moving average of C$258.13. The company has a current ratio of 2.03, a quick ratio of 1.06 and a debt-to-equity ratio of 10.76. The company has a market capitalization of C$692.39 million, a price-to-earnings ratio of 48.21 and a beta of 1.30.

Hammond Power Solutions (TSE:HPS.A - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported C$2.76 earnings per share for the quarter. Hammond Power Solutions had a return on equity of 28.43% and a net margin of 8.73%.The business had revenue of C$324.80 million during the quarter. On average, equities analysts predict that Hammond Power Solutions Inc. will post 7.4221267 earnings per share for the current fiscal year.

Hammond Power Solutions Company Profile

Hammond Power Solutions Inc is engaged in designing and manufacturing of custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico.

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