K-Bro Linen (TSE:KBL) Hits New 52-Week High - Time to Buy?

Key Points

• K-Bro Linen hit a new 52-week high, trading as high as C$46.17 and finishing the session slightly up on light volume. The stock has also climbed above both its 50-day and 200-day moving averages.
• Analysts remain bullish on the company, with National Bank Financial and TD both raising price targets to C$51–C$52 and maintaining positive ratings. The consensus from three analysts is a Buy with an average target price of C$51.00.
• The company recently reported quarterly EPS of C$0.36 on revenue of C$139.11 million, while insider trading was mixed with one executive sale and a company insider purchase. K-Bro Linen operates healthcare and hospitality laundry and linen services in Canada and the U.K.

K-Bro Linen Inc. (TSE:KBL - Get Free Report)'s share price reached a new 52-week high on Wednesday . The company traded as high as C$46.17 and last traded at C$46.17, with a volume of 2104 shares trading hands. The stock had previously closed at C$45.93.

Analysts Set New Price Targets

A number of research firms recently commented on KBL. National Bank Financial set a C$51.00 price target on shares of K-Bro Linen and gave the stock an "outperform" rating in a report on Friday, April 10th. TD increased their price objective on K-Bro Linen from C$50.00 to C$52.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Three analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of C$51.00.

K-Bro Linen Stock Up 0.5%

The firm has a market capitalization of C$595.43 million, a P/E ratio of 28.66, a PEG ratio of 3.50 and a beta of 0.89. The company has a debt-to-equity ratio of 116.44, a quick ratio of 0.87 and a current ratio of 1.87. The stock has a 50 day moving average of C$42.32 and a 200-day moving average of C$37.94.

K-Bro Linen (TSE:KBL - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported C$0.36 earnings per share for the quarter. K-Bro Linen had a net margin of 3.51% and a return on equity of 7.12%. The firm had revenue of C$139.11 million during the quarter. Research analysts predict that K-Bro Linen Inc. will post 2.3389262 earnings per share for the current fiscal year.

Insider Buying and Selling

In other K-Bro Linen news, insider Jeffrey Ronald Gannon sold 1,225 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of C$42.00, for a total transaction of C$51,450.00. Following the sale, the insider owned 15,407 shares in the company, valued at C$647,094. This represents a 7.37% decrease in their ownership of the stock. Also, insider K-Bro Linen Inc. bought 5,341 shares of the company's stock in a transaction on Wednesday, May 27th. The shares were bought at an average price of C$41.25 per share, for a total transaction of C$220,316.25. Following the transaction, the insider owned 338,581 shares of the company's stock, valued at approximately C$13,966,466.25. This represents a 1.60% increase in their ownership of the stock. Insiders purchased a total of 14,622 shares of company stock valued at $605,901 over the last quarter. 3.25% of the stock is owned by company insiders.

About K-Bro Linen

K-Bro Linen Inc is a healthcare and hospitality laundry and linen processor in Canada. It operates in major cities across Canada, and has two distribution centers, providing management services and laundry processing of hospitality, healthcare, and specialty linens. The company provides vital products and services that help people heal, travel, live, and play. It helps hospitals and extended care centers care for the young, old, and vulnerable in environmentally responsible ways. It operates through two divisions, which are the Canadian division and the United Kingdom division.

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