Alimentation Couche-Tard (TSE:ATD) Stock Falls 1.6% - Here's Why

Key Points

• Alimentation Couche-Tard shares fell 1.6% to approximately C$81.39 in mid-day trading, with volume running 19% below its average.
• Analysts remain broadly positive, with the stock carrying an average “Buy” rating and a consensus price target of C$99.13, despite several firms lowering their targets.
• The company reported C$1.26 in quarterly EPS on C$30.43 billion in revenue and pays a quarterly dividend of C$0.215, equivalent to a 1.1% annual yield.

Alimentation Couche-Tard Inc. (TSE:ATD - Get Free Report)'s stock price was down 1.6% during mid-day trading on Tuesday. The stock traded as low as C$81.26 and last traded at C$81.39. Approximately 1,180,999 shares changed hands during mid-day trading, a decline of 19% from the average daily volume of 1,462,291 shares. The stock had previously closed at C$82.71.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on ATD shares. TD dropped their target price on Alimentation Couche-Tard from C$110.00 to C$103.00 and set a "buy" rating for the company in a report on Thursday, September 3rd. BMO Capital Markets raised Alimentation Couche-Tard from a "hold" rating to a "strong-buy" rating in a report on Monday, October 19th. Stifel Nicolaus lowered their target price on Alimentation Couche-Tard from C$108.00 to C$102.00 and set a "buy" rating for the company in a research note on Thursday, September 3rd. Scotia reduced their target price on shares of Alimentation Couche-Tard from C$104.00 to C$102.00 and set a "sector outperform" rating on the stock in a research report on Thursday, September 3rd. Finally, Canadian Imperial Bank of Commerce set a C$93.00 target price on Alimentation Couche-Tard and gave the company a "hold" rating in a research note on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of C$99.13.

Alimentation Couche-Tard Stock Down 1.6%

The firm has a fifty day simple moving average of C$81.27 and a 200-day simple moving average of C$82.06. The company has a quick ratio of 0.88, a current ratio of 1.26 and a debt-to-equity ratio of 92.19. The company has a market capitalization of C$74.71 billion, a P/E ratio of 23.66, a P/E/G ratio of 1.35 and a beta of 0.77.

Alimentation Couche-Tard (TSE:ATD - Get Free Report) last announced its earnings results on Tuesday, September 1st. The company reported C$1.26 earnings per share for the quarter. The firm had revenue of C$30.43 billion during the quarter. Alimentation Couche-Tard had a net margin of 3.95% and a return on equity of 19.91%. On average, equities research analysts expect that Alimentation Couche-Tard Inc. will post 4.04 EPS for the current fiscal year.

Alimentation Couche-Tard Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 25th were paid a $0.2150 dividend. This represents a $0.86 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, September 11th. Alimentation Couche-Tard's dividend payout ratio (DPR) is 17.49%.

Insiders Place Their Bets

In related news, Director Jean Bernier sold 946 shares of the company's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of C$82.22, for a total value of C$77,780.12. Following the transaction, the director directly owned 10,320 shares in the company, valued at approximately C$848,510.40. This represents a 8.40% decrease in their ownership of the stock. Also, Director Éric Boyko purchased 5,000 shares of Alimentation Couche-Tard stock in a transaction that occurred on Tuesday, September 8th. The shares were bought at an average cost of C$80.34 per share, for a total transaction of C$401,700.00. Following the transaction, the director directly owned 47,300 shares of the company's stock, valued at C$3,800,082. This represents a 11.82% increase in their ownership of the stock. 18.67% of the stock is currently owned by corporate insiders.

About Alimentation Couche-Tard

Alimentation Couche-Tard Inc operates a network of convenience stores across North America, Ireland, Scandinavia, Poland, the Baltics, and Russia. The company primarily generates income through the sale of tobacco products, groceries, beverages, fresh food, quick service restaurants, car wash services, other retail products and services, road transportation fuel, stationary energy, marine fuel, and chemicals. In addition, the company operates more stores under the Circle K banner in other countries such as China, Egypt, and Malaysia.

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