Cascades (TSE:CAS) Shares Cross Above 50-Day Moving Average - Time to Sell?

Key Points

• Cascades shares rose 1.6% and crossed above their 50-day moving average, trading near C$17.36 versus a consensus analyst target of C$18.38.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy”; several brokerages recently raised their price targets, including Scotia to C$20.50 and TD to C$20.00.
• The company reported quarterly EPS of C$0.24 on C$1.22 billion in revenue and maintains a quarterly dividend of C$0.12 per share, yielding about 2.8%. However, insiders sold approximately 27,395 shares worth C$480,844 over the past 90 days.

Cascades Inc. (TSE:CAS - Get Free Report) passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of C$17.31 and traded as high as C$17.41. Cascades shares last traded at C$17.36, with a volume of 396,461 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on CAS. Scotia lifted their target price on shares of Cascades from C$16.00 to C$20.50 and gave the stock a "sector outperform" rating in a research report on Friday, August 14th. Royal Bank Of Canada upped their price target on shares of Cascades from C$15.00 to C$18.00 and gave the company an "outperform" rating in a report on Monday, August 10th. Desjardins increased their price target on shares of Cascades from C$13.00 to C$19.00 and gave the company a "hold" rating in a research report on Monday, August 10th. National Bank Financial raised their price objective on shares of Cascades from C$13.00 to C$17.00 and gave the stock a "sector perform" rating in a research note on Monday, August 10th. Finally, TD lifted their price objective on Cascades from C$19.00 to C$20.00 and gave the stock a "buy" rating in a research report on Wednesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of C$18.38.

Cascades Trading Up 1.6%

The company has a quick ratio of 0.86, a current ratio of 1.48 and a debt-to-equity ratio of 111.08. The firm has a market cap of C$1.76 billion, a price-to-earnings ratio of 14.00, a price-to-earnings-growth ratio of 0.56 and a beta of 1.03. The business has a 50 day moving average of C$17.31 and a 200 day moving average of C$13.50.

Cascades (TSE:CAS - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported C$0.24 EPS for the quarter. Cascades had a return on equity of 7.24% and a net margin of 2.64%. The firm had revenue of C$1.22 billion during the quarter. On average, research analysts forecast that Cascades Inc. will post 1.30 earnings per share for the current fiscal year.

Cascades Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, September 3rd were paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Thursday, August 20th. Cascades's dividend payout ratio (DPR) is currently 38.71%.

Insider Transactions at Cascades

In other news, 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 value of C$309,470.00. Following the completion of the transaction, the insider owned 112,056 shares of the company's stock, valued at C$1,960,980. The trade was a 13.63% decrease in their ownership of the stock. Also, insider Emmanuelle Migneault sold 3,298 shares of the company's stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of C$18.23, for a total transaction of C$60,122.54. Following the transaction, the insider directly owned 10,203 shares in the company, valued at C$186,000.69. The trade was a 24.43% decrease in their position. Insiders sold a total of 27,395 shares of company stock worth $480,844 over the last ninety days. 23.78% of the stock is currently owned by corporate 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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