Premium Brands (TSE:PBH) Stock Crosses Below 200 Day Moving Average - Should You Sell?

Key Points

• Technical sell signal: Shares dropped below the 200-day moving average (200-day MA C$96.51), trading as low as C$81.76 and last at C$82.94, indicating a potential downtrend.
• Analysts remain broadly positive with a consensus Buy rating (one Strong Buy, six Buy, one Hold) and an average price target of C$115.60, though several firms have recently trimmed targets.
• Underlying fundamentals show elevated risk — debt-to-equity of 206.42, a high PE of 92.16 and a thin net margin of 0.54% — despite C$1.90 billion in quarterly revenue.

Shares of Premium Brands Holdings Co. (TSE:PBH - Get Free Report) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$96.51 and traded as low as C$81.76. Premium Brands shares last traded at C$82.94, with a volume of 179,990 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Desjardins set a C$120.00 price target on Premium Brands and gave the stock a "buy" rating in a research report on Friday, March 20th. TD Securities lowered their price objective on shares of Premium Brands from C$160.00 to C$140.00 and set a "buy" rating for the company in a research report on Monday, March 23rd. Raymond James Financial dropped their price objective on shares of Premium Brands from C$125.00 to C$115.00 and set an "outperform" rating on the stock in a research note on Friday, March 20th. Stifel Nicolaus boosted their target price on shares of Premium Brands from C$106.00 to C$111.00 in a research report on Thursday, December 18th. Finally, Scotiabank decreased their target price on shares of Premium Brands from C$120.00 to C$100.00 and set an "outperform" rating for the company in a research note on Friday, March 20th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of C$115.60.

Premium Brands Stock Performance

The company has a debt-to-equity ratio of 206.42, a current ratio of 1.23 and a quick ratio of 1.16. The stock has a 50-day moving average price of C$96.69 and a 200-day moving average price of C$96.51. The firm has a market capitalization of C$4.31 billion, a PE ratio of 92.16, a price-to-earnings-growth ratio of 1.10 and a beta of 0.51.

Premium Brands (TSE:PBH - Get Free Report) last issued its quarterly earnings results on Thursday, March 19th. The company reported C$1.29 EPS for the quarter. Premium Brands had a return on equity of 2.38% and a net margin of 0.54%.The firm had revenue of C$1.90 billion during the quarter. On average, research analysts expect that Premium Brands Holdings Co. will post 6.039823 EPS for the current fiscal year.

About Premium Brands

Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. The company's business segments include Specialty Foods, Premium Food Distribution, and Corporate. The Specialty Foods segment consists of its specialty food manufacturing businesses, which contributes about two-thirds of the group revenue; the Premium Food Distribution segment consists of the company's distribution and wholesale businesses; the Corporate segment includes the company's head office activities along with its finance and information systems.

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