K-Bro Linen (TSE:KBL) Reaches New 1-Year High on Analyst Upgrade

Key Points

• K-Bro Linen shares reached a new 52-week high of C$47.87 after TD Securities upgraded the stock to a strong-buy rating.
• Analyst sentiment is broadly positive: K-Bro has an average “Buy” rating and a consensus target price of C$51.00, with TD raising its target to C$52.00.
• The company reported quarterly earnings of C$0.36 per share on revenue of C$139.11 million; insiders have also been net buyers over the past 90 days, despite one insider sale.

Shares of K-Bro Linen Inc. (TSE:KBL - Get Free Report) hit a new 52-week high during mid-day trading on Monday after TD Securities upgraded the stock to a strong-buy rating. The stock traded as high as C$47.87 and last traded at C$47.87, with a volume of 430 shares traded. The stock had previously closed at C$47.10.

Other equities analysts have also issued reports about the stock. TD upped their target price on shares of K-Bro Linen from C$50.00 to C$52.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. National Bank Financial set a C$51.00 target price on K-Bro Linen and gave the stock an "outperform" rating in a report on Friday, April 10th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of C$51.00.

Insider Activity at K-Bro Linen

In other news, insider Jeffrey Ronald Gannon sold 1,225 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of C$42.00, for a total value of C$51,450.00. Following the sale, the insider owned 15,407 shares of the company's stock, valued at C$647,094. The trade was a 7.37% decrease in their ownership of the stock. Also, insider K-Bro Linen Inc. acquired 5,341 shares of the business's stock in a transaction dated Wednesday, May 27th. The stock was acquired at an average cost 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 C$13,966,466.25. This represents a 1.60% increase in their ownership of the stock. Insiders have bought a total of 14,622 shares of company stock valued at $605,901 over the last ninety days. Company insiders own 3.25% of the company's stock.

K-Bro Linen Stock Up 1.6%

The firm's 50-day simple moving average is C$43.47 and its 200 day simple moving average is C$38.59. 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 market capitalization of C$617.62 million, a P/E ratio of 29.73, a PEG ratio of 3.50 and a beta of 0.89.

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

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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