Cascades (TSE:CAS) Share Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Cascades shares rose above their 200-day moving average, reaching C$17.49 and last trading at C$17.33, compared with a 200-day average of C$12.73.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of C$16.50; several brokerages recently raised their targets, including Scotia to C$20.50.
• The company reported quarterly revenue of C$1.22 billion and EPS of C$0.24, while maintaining a quarterly dividend of C$0.12 per share, equivalent to a 2.8% annual yield. Two insiders also sold shares in August.

Shares of Cascades Inc. (TSE:CAS - Get Free Report) passed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of C$12.73 and traded as high as C$17.49. Cascades shares last traded at C$17.33, with a volume of 272,173 shares changing hands.

Analyst Ratings Changes

A number of brokerages recently commented on CAS. Canadian Imperial Bank of Commerce upgraded Cascades from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 21st. Scotia raised their target price on Cascades from C$16.00 to C$20.50 and gave the company a "sector outperform" rating in a research report on Friday, August 14th. National Bank Financial boosted their price target on shares of Cascades from C$13.00 to C$17.00 and gave the stock a "sector perform" rating in a report on Monday, August 10th. Royal Bank Of Canada increased their price target on shares of Cascades from C$15.00 to C$18.00 and gave the company an "outperform" rating in a research report on Monday, August 10th. Finally, Desjardins lifted their price objective on shares of Cascades from C$13.00 to C$19.00 and gave the stock a "hold" rating in a research report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of C$16.50.

Cascades Trading Up 1.8%

The firm has a fifty day moving average of C$15.70 and a two-hundred day moving average of C$12.73. The company has a market cap of C$1.76 billion, a PE ratio of 13.98, a price-to-earnings-growth ratio of 0.56 and a beta of 1.22. The company has a current ratio of 1.48, a quick ratio of 0.86 and a debt-to-equity ratio of 111.08.

Cascades (TSE:CAS - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported C$0.24 earnings per share (EPS) for the quarter. Cascades had a net margin of 2.64% and a return on equity of 7.24%. The company had revenue of C$1.22 billion for the quarter. As a group, sell-side analysts predict that Cascades Inc. will post 1.2959309 EPS for the current year.

Cascades Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, September 3rd were issued a dividend of $0.12 per share. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $0.48 dividend on an annualized basis and a yield of 2.8%. Cascades's dividend payout ratio is 38.71%.

Insider Activity

In other news, insider Jérôme Nadeau sold 5,234 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of C$17.30, for a total value of C$90,548.20. Following the completion of the transaction, the insider directly owned 21,997 shares in the company, valued at approximately C$380,548.10. This trade represents a 19.22% decrease in their ownership of the stock. Also, insider Allan Hogg sold 17,684 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of C$17.50, for a total transaction of C$309,470.00. Following the transaction, the insider directly owned 112,056 shares of the company's stock, valued at approximately C$1,960,980. This represents a 13.63% decrease in their position. 23.78% of the stock is owned by company insiders.

About Cascades

Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs approximately 9,000 talented people across a network of 60 production units in North America. With its participative management, half a century of experience in recycling, and ongoing efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet.

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