Loblaw Companies (TSE:L) Stock Price Passes Above 200-Day Moving Average - Time to Sell?

Key Points

• Loblaw stock crossed above its 200-day moving average (C$60.65), trading as high as C$63.24 and last at C$62.23 on volume of 1,075,854 shares.
• Several analysts raised targets and ratings (TD, Scotiabank, RBC, Desjardins, National Bank), leaving a consensus rating of Moderate Buy with a consensus price target of C$92.63 (six Buys, one Hold).
• Recent quarter showed C$0.67 EPS on C$15.7B revenue with ROE 24.03% and net margin 4.17%; the company has high leverage (debt-to-equity 227.92) and pays a quarterly dividend of C$0.1411 (annualized C$0.56) for a 0.9% yield.

Loblaw Companies Limited (TSE:L - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$60.65 and traded as high as C$63.24. Loblaw Companies shares last traded at C$62.23, with a volume of 1,075,854 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on L. TD Securities increased their target price on Loblaw Companies from C$65.00 to C$75.00 and gave the company a "buy" rating in a research note on Monday, February 23rd. Scotiabank upped their price target on Loblaw Companies from C$68.00 to C$70.00 and gave the stock an "outperform" rating in a report on Thursday, February 26th. Royal Bank Of Canada increased their price objective on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the company an "outperform" rating in a research report on Friday, January 23rd. Desjardins lifted their price objective on shares of Loblaw Companies from C$67.00 to C$70.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Finally, National Bank Financial boosted their target price on shares of Loblaw Companies from C$62.00 to C$66.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 28th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of C$92.63.

Loblaw Companies Stock Performance

The company has a debt-to-equity ratio of 227.92, a current ratio of 1.08 and a quick ratio of 0.68. The stock has a 50-day moving average price of C$64.19 and a 200-day moving average price of C$60.65. The firm has a market capitalization of C$72.93 billion, a PE ratio of 28.03, a price-to-earnings-growth ratio of 3.23 and a beta of 0.29.

Loblaw Companies (TSE:L - Get Free Report) last released its earnings results on Wednesday, February 25th. The company reported C$0.67 EPS for the quarter. Loblaw Companies had a return on equity of 24.03% and a net margin of 4.17%.The company had revenue of C$15.70 billion during the quarter. On average, research analysts expect 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 will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, April 1st will be paid 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 is Friday, March 13th. Loblaw Companies's dividend payout ratio is 24.84%.

Loblaw Companies Company Profile

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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