Loblaw Companies (TSE:L) Stock Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Loblaw's stock crossed above its 200-day moving average, trading around C$62.67 versus the 200-day average of C$61.86 on strong volume, signaling potential technical momentum.
• Analysts have notably raised targets and ratings (including RBC, TD, Desjardins, National Bank), leaving a MarketBeat consensus of “Moderate Buy” with a consensus price target of C$92.63, well above the current price.
• Fundamentals show a market cap of C$73.45B, P/E of 28.23, ROE of 24.03% and quarterly EPS of C$0.67, while the stock yields about 0.9% with a payout ratio near 24.8%.

Loblaw Companies Limited (TSE:L - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$61.86 and traded as high as C$62.76. Loblaw Companies shares last traded at C$62.67, with a volume of 1,014,217 shares traded.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on L shares. National Bank Financial raised their target price on Loblaw Companies from C$62.00 to C$66.00 and gave the company an "outperform" rating in a report on Wednesday, January 28th. Desjardins raised their target price on Loblaw Companies from C$67.00 to C$70.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Royal Bank Of Canada raised their target price on Loblaw Companies from C$68.00 to C$72.00 and gave the company an "outperform" rating in a report on Friday, January 23rd. TD Securities raised their target price on Loblaw Companies from C$65.00 to C$75.00 and gave the company a "buy" rating in a report on Monday, February 23rd. Finally, BMO Capital Markets raised their price target on Loblaw Companies from C$63.00 to C$68.00 and gave the company a "market perform" rating in a research report on Monday, February 23rd. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Loblaw Companies has an average rating of "Moderate Buy" and a consensus price target of C$92.63.

Loblaw Companies Trading Up 1.0%

The firm has a market capitalization of C$73.45 billion, a price-to-earnings ratio of 28.23, a P/E/G ratio of 3.23 and a beta of 0.30. The business has a 50-day moving average of C$63.70 and a two-hundred day moving average of C$61.86. The company has a quick ratio of 0.68, a current ratio of 1.08 and a debt-to-equity ratio of 227.92.

Loblaw Companies (TSE:L - Get Free Report) last released its earnings results on Wednesday, February 25th. The company reported C$0.67 earnings per share for the quarter. Loblaw Companies had a return on equity of 24.03% and a net margin of 4.17%.The business had revenue of C$15.70 billion for the quarter. Research analysts predict that Loblaw Companies Limited will post 9.1225541 EPS for the current fiscal year.

Loblaw Companies Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Wednesday, April 1st were issued a dividend of $0.1411 per share. This represents a $0.56 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Friday, March 13th. Loblaw Companies's payout ratio is presently 24.84%.

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. The firm carries a robust private-label assortment, with top sellers like President's Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program.

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