Leon's Furniture (TSE:LNF) Stock Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Share price breached technical support: Leon's stock fell below its 200-day moving average (C$27.88), trading as low as C$26.16 and last at C$26.59 on Monday.
• Analyst sentiment remains positive: National Bank Financial raised its target to C$36 with an "outperform" rating, and the consensus is a "Moderate Buy" with a C$33 price target.
• Fundamentals show profitability and leverage: Market cap C$1.83B, PE of 11.61, recent quarter EPS C$0.75 on C$671.45M revenue, and a debt-to-equity ratio of 63.87.

Leon's Furniture Limited (TSE:LNF - Get Free Report) shares passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$27.88 and traded as low as C$26.16. Leon's Furniture shares last traded at C$26.59, with a volume of 11,762 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, National Bank Financial boosted their target price on Leon's Furniture from C$35.00 to C$36.00 and gave the company an "outperform" rating in a research note on Wednesday, February 11th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of C$33.00.

Leon's Furniture Stock Up 0.1%

The company has a debt-to-equity ratio of 63.87, a current ratio of 1.57 and a quick ratio of 0.53. The stock has a market capitalization of C$1.83 billion, a PE ratio of 11.61 and a beta of 0.93. The company has a 50 day moving average price of C$26.74 and a 200-day moving average price of C$27.88.

Leon's Furniture (TSE:LNF - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported C$0.75 earnings per share (EPS) for the quarter. Leon's Furniture had a return on equity of 13.08% and a net margin of 6.10%.The firm had revenue of C$671.45 million for the quarter. As a group, analysts forecast that Leon's Furniture Limited will post 2.2104466 earnings per share for the current fiscal year.

About Leon's Furniture

Leon's Furniture Ltd is a Canada-based retailer which is involved in the sale of home furnishing, mattresses, appliances, and electronics. The firm is also the country's commercial retailer of appliances to builders, developers, hotels, and property management companies. It generates maximum revenue from sales of goods by corporate stores.

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