Metro (TSE:MRU) Shares Pass Below 200 Day Moving Average - What's Next?

Key Points

• Metro shares fell below their 200-day moving average during Wednesday trading, dipping to C$92.31 before last trading at C$93.30. The move may signal weaker short-term momentum for the stock.
• Analyst sentiment remains cautious, with the company holding a consensus “Hold” rating and an average target price of C$103.62. Several firms recently cut price targets, and Scotiabank downgraded the stock to hold.
• Metro reported C$1.11 EPS for its latest quarter on revenue of C$5.11 billion and also declared a quarterly dividend of C$0.4075 per share. The dividend implies an annualized yield of about 1.7%.

Shares of Metro Inc. (TSE:MRU - Get Free Report) passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$93.78 and traded as low as C$92.31. Metro shares last traded at C$93.30, with a volume of 311,043 shares traded.

Wall Street Analyst Weigh In

MRU has been the topic of several analyst reports. Canadian Imperial Bank of Commerce reduced 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 report on Thursday, April 23rd. National Bank Financial set a C$105.00 price objective on shares of Metro and gave the company a "sector perform" rating in a research report on Tuesday, June 30th. BMO Capital Markets reduced their price objective on shares of Metro from C$110.00 to C$105.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Desjardins decreased their price objective on shares of Metro from C$99.00 to C$97.00 and set a "hold" rating for the company in a research report on Thursday, April 23rd. Finally, Scotiabank downgraded shares of Metro from an "outperform" rating to a "hold" rating and set a C$103.00 target price for the company. in a research note on Thursday, April 9th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of C$103.62.

Metro Price Performance

The stock has a market capitalization of C$19.68 billion, a price-to-earnings ratio of 19.89, a price-to-earnings-growth ratio of 4.06 and a beta of 0.16. The company has a current ratio of 1.43, a quick ratio of 0.41 and a debt-to-equity ratio of 69.30. The company's 50 day moving average is C$90.79 and its 200 day moving average is C$93.78.

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

Metro Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, June 2nd were paid a dividend of $0.4075 per share. This represents a $1.63 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Wednesday, May 13th. Metro's dividend payout ratio (DPR) is currently 32.36%.

About Metro

With annual sales of more than $22 billion, METRO Inc is a food and pharmacy leader in Québec and Ontario, providing employment to more than 97,000 people. Its purpose is to Nourish the health and well-being of our communities. As a retailer, franchisor, distributor, manufacturer, and provider of eCommerce services, the company operates or services a network of some 1,000 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson, and some 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.