Chartwell Retirement Residences (TSE:CSH.UN) Stock Breaks Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Chartwell Retirement Residences fell below its 200-day moving average, trading as low as C$19.49 before closing at C$19.82, compared with the moving average of C$21.22.
• Despite the technical weakness, analysts remain bullish: the stock has a consensus “Buy” rating and an average price target of C$25.77. ATB Cormark lowered its target modestly to C$25.00 while maintaining an “outperform” rating.
• Chartwell declared a monthly dividend of C$0.052 per share, equivalent to an annualized C$0.62 and a 3.1% yield. However, its reported dividend payout ratio is exceptionally high at 3,327.75%, while leverage remains elevated with a debt-to-equity ratio of 192.20.

Chartwell Retirement Residences (TSE:CSH.UN - Get Free Report) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of C$21.22 and traded as low as C$19.49. Chartwell Retirement Residences shares last traded at C$19.82, with a volume of 751,986 shares trading hands.

Analysts Set New Price Targets

Separately, ATB Cormark Capital Markets decreased their price objective on Chartwell Retirement Residences from C$25.50 to C$25.00 and set an "outperform" rating for the company in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of C$25.77.

Chartwell Retirement Residences Trading Down 0.9%

The stock's fifty day moving average price is C$20.93 and its 200 day moving average price is C$21.22. The company has a quick ratio of 0.07, a current ratio of 0.43 and a debt-to-equity ratio of 192.20. The stock has a market cap of C$6.51 billion, a PE ratio of 1,070.71 and a beta of 0.88.

Chartwell Retirement Residences (TSE:CSH.UN - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported C($0.00) earnings per share for the quarter. Chartwell Retirement Residences had a net margin of 17.92% and a negative return on equity of 4.61%. The company had revenue of C$336.74 million during the quarter. On average, sell-side analysts forecast that Chartwell Retirement Residences will post 0.1237392 EPS for the current year.

Chartwell Retirement Residences Announces Dividend

The business also recently declared a monthly dividend, which was paid on Monday, August 17th. Stockholders of record on Monday, August 17th were issued a dividend of $0.0520 per share. This represents a $0.62 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Friday, July 31st. Chartwell Retirement Residences's dividend payout ratio (DPR) is presently 3,327.75%.

Chartwell Retirement Residences Company Profile

Chartwell is in the business of serving and caring for Canada's seniors, committed to its vision of Making People's Lives BETTER and to providing a happier, healthier, and more fulfilling life experience for its residents. Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent living through to assisted living and long-term care. Chartwell is one of the largest operators in Canada, serving approximately 25,000 residents in four provinces across the country.

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