Loblaw Companies (TSE:L) Hits New 12-Month High - Time to Buy?

Key Points

• Loblaw Companies Limited reached a new 52-week high of C$59.26 during trading, closing at C$58.76, reflecting significant investor interest with a trading volume of 1,263,079 shares.
• Analysts have shown strong confidence in Loblaw, with multiple firms raising their price targets significantly, resulting in an average target price of C$244.50 and a consensus rating of "Moderate Buy."
• The company also announced a quarterly dividend of $0.5643, representing an annualized dividend of $2.26 and a yield of 3.8%, contributing to its attractiveness to income-focused investors.

Loblaw Companies Limited (TSE:L - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The company traded as high as C$59.26 and last traded at C$58.76, with a volume of 1263079 shares traded. The stock had previously closed at C$57.70.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Scotiabank boosted their target price on Loblaw Companies from C$61.00 to C$65.00 and gave the stock an "outperform" rating in a research report on Thursday. UBS Group boosted their price objective on Loblaw Companies from C$210.00 to C$253.00 in a research note on Thursday, May 1st. BMO Capital Markets boosted their price objective on Loblaw Companies from C$220.00 to C$230.00 and gave the stock a "market perform" rating in a research note on Friday, July 25th. CIBC boosted their price objective on Loblaw Companies from C$208.00 to C$234.00 and gave the stock an "outperform" rating in a research note on Thursday, May 1st. Finally, National Bankshares reduced their price objective on Loblaw Companies from C$242.00 to C$60.00 in a research note on Wednesday, August 20th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Loblaw Companies presently has a consensus rating of "Moderate Buy" and a consensus target price of C$199.25.

Loblaw Companies Stock Performance

The firm has a 50-day moving average of C$210.75 and a two-hundred day moving average of C$207.03. The company has a quick ratio of 0.68, a current ratio of 1.29 and a debt-to-equity ratio of 166.11. The company has a market capitalization of C$17.16 billion, a PE ratio of 7.70, a PEG ratio of 3.23 and a beta of 0.17.

Loblaw Companies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Monday, September 15th will be paid a $0.5643 dividend. This represents a $2.26 dividend on an annualized basis and a dividend yield of 4.0%. Loblaw Companies's dividend payout ratio is presently 27.83%.

Insider Buying and Selling

In other news, Senior Officer Jeffrey Francis Leger sold 3,400 shares of the business's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of C$230.50, for a total transaction of C$783,700.00. Also, Senior Officer Nicholas Henn sold 4,000 shares of the business's stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of C$227.00, for a total value of C$908,000.00. Insiders own 53.77% of the company's stock.

About Loblaw Companies

Loblaw is one of Canada's largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart.