Canadian Utilities (TSE:CU) Share Price Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• Canadian Utilities shares fell below their 200-day moving average, trading as low as C$49.53 versus the C$51.12 average, with the latest price at C$49.59.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from seven analysts, although several firms raised their price targets and the average target is C$54.71.
• The company reported quarterly EPS of C$0.51 on C$914 million in revenue, but profitability was modest, with a 1.88% return on equity and a 3.30% net margin; its debt-to-equity ratio was high at 184.88.

Canadian Utilities Limited (TSE:CU - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of C$51.12 and traded as low as C$49.53. Canadian Utilities shares last traded at C$49.59, with a volume of 265,211 shares trading hands.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. BMO Capital Markets upped their price target on Canadian Utilities from C$50.00 to C$55.00 and gave the stock a "market perform" rating in a research note on Thursday, July 30th. Royal Bank Of Canada upped their price objective on shares of Canadian Utilities from C$58.00 to C$63.00 and gave the stock a "sector perform" rating in a report on Thursday, October 8th. National Bank Financial boosted their target price on shares of Canadian Utilities from C$55.00 to C$56.00 and gave the stock a "sector perform" rating in a research report on Thursday, October 8th. TD upped their target price on shares of Canadian Utilities from C$52.00 to C$57.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. Finally, TD Securities raised shares of Canadian Utilities from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of C$54.71.

Canadian Utilities Stock Performance

The business's fifty day moving average is C$50.76 and its two-hundred day moving average is C$51.12. The company has a quick ratio of 1.30, a current ratio of 1.80 and a debt-to-equity ratio of 184.88. The stock has a market capitalization of C$13.50 billion, a PE ratio of 309.94, a price-to-earnings-growth ratio of 2.38 and a beta of 0.36.

Canadian Utilities (TSE:CU - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported C$0.51 EPS for the quarter. Canadian Utilities had a return on equity of 1.88% and a net margin of 3.30%. The firm had revenue of C$914.00 million during the quarter. As a group, research analysts anticipate that Canadian Utilities Limited will post 2.41 EPS for the current fiscal year.

About Canadian Utilities

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company's main divisions include electricity (generation, transmission, and distribution), pipelines & liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States and Mexico. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta.

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