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

Key Points

• Loblaw's stock briefly crossed above its 200‑day moving average (200‑day MA C$61.54), trading as high as C$62.32 on Thursday while last trading at C$61.02 on volume ~1.15M shares.
• Analysts have largely raised targets and ratings—five Buys and two Holds—resulting in a consensus Moderate Buy and an average target of C$92.63.
• The company shows solid profitability (last quarter EPS C$0.67, ROE 24.03%, net margin 4.17%) but high leverage (debt/equity 227.92), trades at a P/E of ~27.5, and pays a modest annualized dividend yielding 0.9%.

Loblaw Companies Limited (TSE:L - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$61.54 and traded as high as C$62.32. Loblaw Companies shares last traded at C$61.02, with a volume of 1,149,280 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. BMO Capital Markets boosted their target price on Loblaw Companies from C$63.00 to C$68.00 and gave the company a "market perform" rating in a research note on Monday, February 23rd. TD Securities raised their price target on shares of Loblaw Companies from C$65.00 to C$75.00 and gave the stock a "buy" rating in a research note on Monday, February 23rd. Scotiabank downgraded shares of Loblaw Companies from an "outperform" rating to a "hold" rating and set a C$70.00 price objective on the stock. in a report on Thursday, April 9th. Royal Bank Of Canada boosted their price objective on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the stock an "outperform" rating in a research report on Friday, January 23rd. Finally, National Bank Financial increased 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 report on Wednesday, January 28th. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of C$92.63.

Loblaw Companies Stock Down 1.9%

The firm has a market cap of C$71.51 billion, a P/E ratio of 27.49, a price-to-earnings-growth ratio of 3.23 and a beta of 0.30. The company has a quick ratio of 0.68, a current ratio of 1.08 and a debt-to-equity ratio of 227.92. The firm has a fifty day moving average of C$64.30 and a 200-day moving average of C$61.54.

Loblaw Companies (TSE:L - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported C$0.67 earnings per share for the quarter. The firm had revenue of C$15.70 billion during the quarter. Loblaw Companies had a return on equity of 24.03% and a net margin of 4.17%. On average, equities research analysts anticipate that Loblaw Companies Limited will post 9.1225541 earnings per share for the current year.

Loblaw Companies Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Wednesday, April 1st were paid a $0.1411 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. Loblaw Companies's dividend payout ratio (DPR) is currently 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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