Canadian Utilities (TSE:CU) Stock Price Breaks Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Canadian Utilities shares fell below their 200-day moving average of C$50.99, trading as low as C$49.89 before closing at C$50.59.
• Analysts remain cautious: all seven tracked analysts rate the stock “Hold,” with a consensus price target of C$53.14.
• The company reported quarterly EPS of C$0.51 on revenue of C$914 million, while its high debt-to-equity ratio of 184.88 and elevated P/E ratio of 316.19 highlight valuation and financial risks.

Canadian Utilities Limited (TSE:CU - Get Free Report) crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of C$50.99 and traded as low as C$49.89. Canadian Utilities shares last traded at C$50.59, with a volume of 627,945 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Royal Bank Of Canada lifted their target price on Canadian Utilities from C$50.00 to C$58.00 and gave the stock a "sector perform" rating in a report on Thursday, July 30th. TD increased their price target on Canadian Utilities from C$48.00 to C$52.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. National Bank Financial raised their price objective on shares of Canadian Utilities from C$51.00 to C$55.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 30th. Canadian Imperial Bank of Commerce lowered their price objective on shares of Canadian Utilities from C$55.00 to C$52.00 in a research note on Tuesday, September 22nd. Finally, Scotiabank boosted their target price on shares of Canadian Utilities from C$50.00 to C$53.00 and gave the company a "sector perform" rating in a research report on Tuesday, July 21st. Seven equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, Canadian Utilities has a consensus rating of "Hold" and an average price target of C$53.14.

Canadian Utilities Stock Performance

The company's 50-day simple moving average is C$52.42 and its 200 day simple moving average is C$50.99. 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$13.78 billion, a P/E ratio of 316.19, a PEG ratio of 2.38 and a beta of 0.47.

Canadian Utilities (TSE:CU - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported C$0.51 earnings per share (EPS) for the quarter. The company had revenue of C$914.00 million during the quarter. Canadian Utilities had a return on equity of 1.88% and a net margin of 3.30%. As a group, sell-side analysts expect that Canadian Utilities Limited will post 2.4063556 EPS 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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