K-Bro Linen (TSE:KBL) Stock Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• K-Bro Linen shares climbed above their 200-day moving average, reaching C$47.80 and closing at C$47.50, compared with the 200-day average of C$39.23.
• Analysts remain positive: TD raised its target to C$52, National Bank Financial raised its target to C$54, and TD Securities upgraded the stock to “strong buy.” The consensus rating is “Buy,” with an average target of C$52.00.
• The company reported quarterly earnings of C$0.78 per share on revenue of C$150.36 million. Recent insider activity was mixed, with one insider selling shares while company insiders made net purchases over the past three months.

K-Bro Linen Inc. (TSE:KBL - Get Free Report)'s share price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$39.23 and traded as high as C$47.80. K-Bro Linen shares last traded at C$47.50, with a volume of 6,587 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. TD increased their price target on shares of 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. National Bank Financial increased their price objective on K-Bro Linen from C$51.00 to C$54.00 and gave the company an "outperform" rating in a research report on Tuesday, July 28th. Finally, TD Securities upgraded K-Bro Linen to a "strong-buy" rating in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average price target of C$52.00.

K-Bro Linen Price Performance

The firm has a 50 day moving average price of C$44.36 and a 200 day moving average price of C$39.23. The stock has a market capitalization of C$612.85 million, a PE ratio of 29.50, a price-to-earnings-growth ratio of 3.50 and a beta of 0.89. The company has a current ratio of 1.87, a quick ratio of 0.87 and a debt-to-equity ratio of 116.44.

K-Bro Linen (TSE:KBL - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported C$0.78 earnings per share for the quarter. The company had revenue of C$150.36 million for the quarter. K-Bro Linen had a return on equity of 7.12% and a net margin of 3.51%. Research analysts anticipate that K-Bro Linen Inc. will post 2.3389262 earnings per share for the current year.

Insider Activity at K-Bro Linen

In related news, insider Jeffrey Ronald Gannon sold 1,225 shares of the stock in a transaction that occurred 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 completion of the sale, the insider directly owned 15,407 shares of the company's stock, valued at approximately C$647,094. This represents a 7.37% decrease in their position. Also, insider K-Bro Linen Inc. bought 2,670 shares of the firm's stock in a transaction on Friday, May 29th. The shares were purchased at an average price of C$41.33 per share, for a total transaction of C$110,351.10. Following the purchase, the insider owned 343,321 shares in the company, valued at C$14,189,456.93. This trade represents a 0.78% increase in their position. Insiders purchased a total of 14,622 shares of company stock valued at $605,901 over the last three months. 3.25% of the stock is currently owned by 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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