Canadian Utilities (TSE:CU) Stock Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Canadian Utilities shares fell below their 200-day moving average, trading as low as C$49.25 before closing at C$49.48, compared with the 200-day average of C$51.13.
• Analyst sentiment remains mixed but leans toward holding: the consensus rating is “Hold”, with a target price of C$54.71. Recent targets range from C$52 to C$57, while TD upgraded the stock to “strong buy.”
• The company reported C$0.51 in quarterly EPS and C$914 million in revenue, but its financial profile includes a very high debt-to-equity ratio of 184.88 and a low net margin of 3.30%.

Canadian Utilities Limited (TSE:CU - Get Free Report)'s share price passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of C$51.13 and traded as low as C$49.25. Canadian Utilities shares last traded at C$49.48, with a volume of 953,661 shares.

Analyst Ratings Changes

CU has been the topic of several research reports. National Bank Financial upped their price target on Canadian Utilities from C$55.00 to C$56.00 and gave the company a "sector perform" rating in a report on Thursday, October 8th. BMO Capital Markets increased their price objective on Canadian Utilities from C$50.00 to C$55.00 and gave the company a "market perform" rating in a research report on Thursday, July 30th. TD raised their price objective on Canadian Utilities from C$52.00 to C$57.00 and gave the stock a "buy" rating in a research note on Wednesday, October 7th. Canadian Imperial Bank of Commerce reduced their price objective on Canadian Utilities from C$55.00 to C$52.00 in a research note on Tuesday, September 22nd. Finally, TD Securities upgraded Canadian Utilities from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Canadian Utilities presently has a consensus rating of "Hold" and a consensus target price of C$54.71.

Canadian Utilities Trading Down 0.5%

The company has a fifty day simple moving average of C$51.17 and a 200-day simple moving average of C$51.13. The company has a current ratio of 1.80, a quick ratio of 1.30 and a debt-to-equity ratio of 184.88. The stock has a market cap of C$13.47 billion, a price-to-earnings ratio of 309.25, a P/E/G ratio of 2.38 and a beta of 0.36.

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

Canadian Utilities Company Profile

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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