Metro (TSE:MRU) Reaches New 1-Year Low - Time to Sell?

Key Points

• Metro hit a new 52-week low, trading as low as C$89.30 (last C$89.60) mid-day, down about 2.9% with ~480,167 shares traded and a market cap of roughly C$19.22 billion.
• Analysts have trimmed targets and ratings recently; the consensus is a Hold with an average price target of C$106.43 (two Buys, five Holds).
• Insiders sold 11,844 shares over the last three months (insider ownership 0.14%), while Metro reported quarterly EPS of C$1.11 on C$5.11 billion revenue and shows a P/E of ~19.95 and debt-to-equity of 69.33.

Metro Inc. (TSE:MRU - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as C$89.30 and last traded at C$89.60, with a volume of 480167 shares trading hands. The stock had previously closed at C$92.88.

Wall Street Analysts Forecast Growth

MRU has been the subject of several analyst reports. TD Securities reduced their price target on shares of Metro from C$118.00 to C$113.00 and set a "buy" rating for the company in a report on Wednesday, January 28th. Canadian Imperial Bank of Commerce reduced their price target on shares of Metro from C$105.00 to C$101.00 and set a "neutral" rating for the company in a report on Wednesday, January 28th. Desjardins reduced their price target on shares of Metro from C$105.00 to C$99.00 and set a "hold" rating for the company in a report on Wednesday, January 28th. Scotiabank downgraded shares of Metro from an "outperform" rating to a "hold" rating and set a C$103.00 price target for the company. in a report on Thursday, April 9th. Finally, National Bank Financial reduced their price target on shares of Metro from C$107.00 to C$106.00 and set a "sector perform" rating for the company in a report on Wednesday, January 28th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of C$106.43.

Metro Stock Down 2.9%

The firm has a market cap of C$19.22 billion, a price-to-earnings ratio of 19.95, a P/E/G ratio of 4.06 and a beta of 0.34. The firm's fifty day moving average is C$95.44 and its two-hundred day moving average is C$96.33. The company has a debt-to-equity ratio of 69.33, a current ratio of 1.42 and a quick ratio of 0.41.

Metro (TSE:MRU - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The company reported C$1.11 earnings per share for the quarter. The business had revenue of C$5.11 billion during the quarter. Metro had a net margin of 4.44% and a return on equity of 13.93%. On average, sell-side analysts expect that Metro Inc. will post 4.8188614 EPS for the current fiscal year.

Insider Activity at Metro

In related news, insider Genevi�Ve Bich sold 4,418 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of C$91.13, for a total value of C$402,612.34. Following the completion of the sale, the insider owned 35,677 shares of the company's stock, valued at C$3,251,245.01. This represents a 11.02% decrease in their ownership of the stock. Also, insider Dan Gabbard sold 2,978 shares of the company's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of C$96.67, for a total transaction of C$287,883.26. Following the completion of the sale, the insider directly owned 12,344 shares of the company's stock, valued at C$1,193,294.48. The trade was a 19.44% decrease in their position. Over the last three months, insiders sold 11,844 shares of company stock worth $1,096,119. 0.14% of the stock is owned by company insiders.

Metro Company Profile

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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