Loblaw Companies (TSE:L) Sets New 1-Year Low - Should You Sell?

Key Points

• Loblaw Companies reached a new 52-week low at C$53.25 amidst high trading volume of approximately 1.4 million shares.
• Analysts have largely given Loblaw a positive outlook, with six analysts rating it as a "Buy" and target price estimates ranging from C$61.00 to C$267.00.
• The company announced a quarterly dividend of $0.5643, translating to an annual yield of 4.2%, with the payout ratio currently at 26.06%.

Loblaw Companies Limited (TSE:L - Get Free Report) hit a new 52-week low on Friday . The company traded as low as C$53.25 and last traded at C$53.46, with a volume of 1403289 shares changing hands. The stock had previously closed at C$53.93.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on L shares. TD Securities upped their target price on Loblaw Companies from C$245.00 to C$250.00 and gave the company a "buy" rating in a report on Friday, July 25th. Desjardins lifted their price objective on Loblaw Companies from C$230.00 to C$235.00 and gave the company a "hold" rating in a report on Friday, July 25th. Royal Bank Of Canada lifted their price objective on Loblaw Companies from C$234.00 to C$267.00 in a research report on Monday, July 21st. BMO Capital Markets boosted their target price 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. Finally, Scotiabank boosted their target price on Loblaw Companies from C$61.00 to C$65.00 and gave the company an "outperform" rating in a research note on Thursday, August 21st. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Loblaw Companies presently has a consensus rating of "Moderate Buy" and an average target price of C$199.25.

Loblaw Companies Price Performance

The company has a current ratio of 1.29, a quick ratio of 0.68 and a debt-to-equity ratio of 166.11. The firm has a market cap of C$63.56 billion, a P/E ratio of 26.50, a PEG ratio of 3.23 and a beta of 0.42. The firm has a 50-day simple moving average of C$130.21 and a 200-day simple moving average of C$185.63.

Loblaw Companies Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Wednesday, October 1st will be issued a $0.5643 dividend. This represents a $2.26 annualized dividend and a yield of 4.2%. The ex-dividend date is Monday, September 15th. Loblaw Companies's payout ratio is presently 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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