Loblaw Companies (TSE:L) Hits New 52-Week Low - Should You Sell?

Key Points

• Loblaw Companies Limited shares hit a new 52-week low at C$52.95, closing at C$54.13, indicating significant market volatility.
• Analysts have varying ratings for Loblaw, with a consensus target price of C$199.25, highlighting a Moderate Buy sentiment despite recent downgrades.
• The company announced a quarterly dividend of $0.5643 per share, translating to a 4.2% yield, demonstrating its commitment to returning value to shareholders.

Shares of Loblaw Companies Limited (TSE:L - Get Free Report) hit a new 52-week low during trading on Tuesday . The company traded as low as C$52.95 and last traded at C$54.13, with a volume of 465420 shares trading hands. The stock had previously closed at C$53.62.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on L shares. National Bankshares decreased their target price on Loblaw Companies from C$242.00 to C$60.00 in a research note on Wednesday, August 20th. Scotiabank boosted their price objective on Loblaw Companies from C$61.00 to C$65.00 and gave the stock an "outperform" rating in a research report on Thursday, August 21st. 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 report on Friday, July 25th. Royal Bank Of Canada boosted their price objective on Loblaw Companies from C$234.00 to C$267.00 in a research report on Monday, July 21st. Finally, Desjardins boosted their price objective on Loblaw Companies from C$230.00 to C$235.00 and gave the stock a "hold" rating in a research report on Friday, July 25th. Six investment 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 presently has an average rating of "Moderate Buy" and a consensus target price of C$199.25.

Loblaw Companies Price Performance

The company has a fifty day simple moving average of C$106.96 and a 200-day simple moving average of C$179.05. The company has a debt-to-equity ratio of 166.11, a current ratio of 1.29 and a quick ratio of 0.68. The company has a market cap of C$64.36 billion, a P/E ratio of 26.83, a PEG ratio of 3.23 and a beta of 0.29.

Loblaw Companies Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Wednesday, October 1st were paid a dividend of $0.5643 per share. This represents a $2.26 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Monday, September 15th. Loblaw Companies's payout ratio is 26.06%.

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.

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