K-Bro Linen (TSE:KBL) Share Price Passes Above 200-Day Moving Average - What's Next?

Key Points

• K-Bro Linen Inc. shares have crossed above their 200-day moving average for the first time, indicating potential bullish momentum, with the stock trading recently at C$36.75.
• Analysts show mixed feelings, with Cormark downgrading the stock from a "moderate buy" to a "hold" rating, while both Raymond James and TD Securities have increased their price targets, pushing for a "buy" sentiment.
• The company has announced a dividend of $0.10 per share to be paid on October 15th, with a payout ratio of 68.97%, reflecting a commitment to returning value to shareholders.

K-Bro Linen Inc. (TSE:KBL - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$34.98 and traded as high as C$37.31. K-Bro Linen shares last traded at C$36.75, with a volume of 15,891 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Cormark cut K-Bro Linen from a "moderate buy" rating to a "hold" rating in a research note on Wednesday, June 4th. Raymond James Financial boosted their target price on shares of K-Bro Linen from C$45.00 to C$48.00 and gave the stock an "outperform" rating in a report on Tuesday, June 3rd. TD Securities lifted their price objective on shares of K-Bro Linen from C$50.00 to C$55.00 and gave the stock a "buy" rating in a research report on Friday, August 15th. Finally, Stifel Nicolaus raised their target price on shares of K-Bro Linen from C$46.00 to C$50.00 in a research note on Friday, June 13th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of C$51.25.

K-Bro Linen Stock Up 0.4%

The business's 50 day moving average is C$35.76 and its 200 day moving average is C$35.04. The company has a market capitalization of C$470.03 million, a price-to-earnings ratio of 21.01, a PEG ratio of 3.50 and a beta of 0.63. The company has a debt-to-equity ratio of 102.23, a quick ratio of 0.87 and a current ratio of 2.08.

K-Bro Linen Dividend Announcement

The company also recently declared a sep 25 dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $0.10 per share. K-Bro Linen's payout ratio is presently 68.97%.

K-Bro Linen Company Profile

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.