Metro (TSE:MRU) Hits New 52-Week Low - What's Next?

Key Points

• Metro hit a new 52-week low, trading as low as C$88.74 (last C$89.07) on Wednesday; several analysts trimmed price targets and the consensus rating is "Hold" with an average target of C$103.63.
• The company reported quarterly EPS of C$1.11 on C$5.11 billion in revenue, with a market capitalization of C$18.72 billion and a P/E of 18.93, providing valuation context against the recent share price.
• Metro declared a quarterly dividend of C$0.4075 per share (annualized C$1.63) with an ex-dividend date of May 13 and a yield of about 1.8%.

Metro Inc. (TSE:MRU - Get Free Report) shares reached a new 52-week low on Wednesday . The company traded as low as C$88.74 and last traded at C$89.07, with a volume of 36234 shares trading hands. The stock had previously closed at C$89.55.

Analyst Ratings Changes

Several analysts have commented on the stock. Desjardins decreased their price target on shares of Metro from C$99.00 to C$97.00 and set a "hold" rating on the stock in a research note on Thursday, April 23rd. BMO Capital Markets decreased their target price on shares of Metro from C$110.00 to C$105.00 and set an "outperform" rating on the stock in a research report on Thursday, April 23rd. National Bank Financial decreased their target price on shares of Metro from C$106.00 to C$105.00 and set a "sector perform" rating on the stock in a research report on Thursday, April 23rd. Canadian Imperial Bank of Commerce decreased their target price on shares of Metro from C$101.00 to C$97.00 and set a "neutral" rating on the stock in a research report on Thursday, April 23rd. Finally, TD Securities decreased their target price on shares of Metro from C$118.00 to C$113.00 and set a "buy" rating on the stock in a research report on Wednesday, January 28th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of C$103.63.

Metro Price Performance

The company has a market capitalization of C$18.72 billion, a P/E ratio of 18.93, a P/E/G ratio of 4.06 and a beta of 0.34. The firm's fifty day moving average is C$94.32 and its 200 day moving average is C$96.18. The company has a debt-to-equity ratio of 69.30, a quick ratio of 0.41 and a current ratio of 1.43.

Metro (TSE:MRU - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The company reported C$1.11 EPS for the quarter. The company had revenue of C$5.11 billion for the quarter. Metro had a net margin of 4.52% and a return on equity of 14.38%. As a group, analysts predict that Metro Inc. will post 4.8188614 earnings per share for the current fiscal year.

Metro Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Stockholders of record on Tuesday, June 2nd will be paid a dividend of $0.4075 per share. The ex-dividend date is Wednesday, May 13th. This represents a $1.63 dividend on an annualized basis and a dividend yield of 1.8%. Metro's dividend payout ratio (DPR) is currently 32.36%.

Insider Activity

In other news, insider Dan Gabbard sold 2,978 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of C$96.67, for a total transaction of C$287,883.26. Following the transaction, the insider directly owned 12,344 shares in the company, valued at approximately C$1,193,294.48. This trade represents a 19.44% decrease in their ownership of the stock. Corporate insiders own 0.14% of the company's stock.

About Metro

Metro is one of the largest grocery retailers in Canada. With its 2018 acquisition of Jean Coutu, it also boasts a meaningful drugstore footprint. Noteworthy grocery banners include Metro, Metro Plus, Super C, and Food Basics, while its pharmacies primarily operate under the Jean Coutu and Brunet trademarks. It utilizes an array of business models, but it most frequently acts as either a retailer, operating individual stores, or a franchiser, licensing its trademarks and supplying merchandise to franchisees.

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