Dollarama (OTCMKTS:DLMAF) Share Price Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• Dollarama shares fell below their 200-day moving average, trading as low as $128.37 versus the $130.31 average, and last changing hands at $129.05.
• Despite the technical weakness, analyst sentiment remains positive: the stock has an average “Buy” rating, including five Strong Buy, four Buy, and four Hold ratings.
• Dollarama slightly beat quarterly earnings expectations, reporting $0.92 in earnings per share versus a $0.91 consensus estimate, while revenue matched expectations at $1.44 billion.

Dollarama Inc. (OTCMKTS:DLMAF - Get Free Report)'s share price passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $130.31 and traded as low as $128.37. Dollarama shares last traded at $129.05, with a volume of 139,095 shares traded.

Wall Street Analyst Weigh In

DLMAF has been the subject of a number of analyst reports. Scotiabank reissued an "outperform" rating on shares of Dollarama in a research report on Friday, June 12th. Ventum Financial raised Dollarama to a "strong-buy" rating in a research report on Thursday, August 20th. BMO Capital Markets reiterated an "outperform" rating on shares of Dollarama in a report on Friday, June 12th. Royal Bank Of Canada reissued an "outperform" rating on shares of Dollarama in a research report on Thursday, September 17th. Finally, Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of Dollarama in a research note on Friday, June 12th. Five analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Buy".

Dollarama Trading Up 1.3%

The company has a fifty day moving average of $130.77 and a 200-day moving average of $130.31. The company has a current ratio of 1.57, a quick ratio of 0.70 and a debt-to-equity ratio of 3.96. The company has a market capitalization of $34.70 billion and a price-to-earnings ratio of 35.85.

Dollarama (OTCMKTS:DLMAF - Get Free Report) last released its earnings results on Wednesday, September 16th. The company reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.01. Dollarama had a return on equity of 98.00% and a net margin of 17.32%.The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.44 billion. As a group, equities research analysts anticipate that Dollarama Inc. will post 3.7 earnings per share for the current fiscal year.

Dollarama Company Profile

Dollarama Inc is a Canadian value retailer that operates a chain of stores offering a broad assortment of everyday consumer products at fixed, low price points. Its merchandise includes general merchandise, household supplies, seasonal items, toys, stationery, party goods, hardware, kitchen products, and select food and convenience products.

Founded in 1992, Dollarama has expanded into one of Canada's largest discount-store networks, serving communities across the country through stores in all provinces and territories.

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