Dollarama (TSE:DOL) Shares Cross Above 200 Day Moving Average - Time to Sell?

Key Points

• Dollarama shares rose above their 200-day moving average, reaching C$197.95 and last trading at C$197.83, compared with a 200-day average of C$181.01.
• Analysts remain broadly positive: 10 rate the stock a Buy and one a Hold, with a “Moderate Buy” consensus and an average price target of C$215.12.
• The company reported C$1.29 in quarterly EPS on C$2.03 billion in revenue and declared a quarterly dividend of C$0.12 per share, equivalent to a 0.2% yield.

Dollarama Inc. (TSE:DOL - Get Free Report) shares passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of C$181.01 and traded as high as C$197.95. Dollarama shares last traded at C$197.83, with a volume of 623,511 shares changing hands.

Analyst Upgrades and Downgrades

DOL has been the subject of several research analyst reports. National Bank Financial upped their price target on shares of Dollarama from C$209.00 to C$210.00 and gave the company an "outperform" rating in a report on Thursday, September 17th. Scotiabank dropped their price objective on shares of Dollarama from C$220.00 to C$210.00 in a report on Monday, September 21st. Royal Bank Of Canada raised their price objective on shares of Dollarama from C$223.00 to C$225.00 and gave the stock an "outperform" rating in a report on Thursday, September 17th. Ventum Financial set a C$225.00 price objective on shares of Dollarama and gave the company a "buy" rating in a research report on Tuesday, September 8th. Finally, UBS Group reduced their target price on shares of Dollarama from C$202.00 to C$190.00 in a research note on Monday, September 14th. Ten research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Dollarama presently has an average rating of "Moderate Buy" and an average price target of C$215.12.

Dollarama Stock Performance

The stock has a fifty day moving average of C$182.34 and a 200-day moving average of C$181.01. The firm has a market capitalization of C$53.09 billion, a P/E ratio of 39.72, a P/E/G ratio of 1.93 and a beta of 0.34. The company has a quick ratio of 0.08, a current ratio of 1.55 and a debt-to-equity ratio of 399.63.

Dollarama (TSE:DOL - Get Free Report) last released its quarterly earnings results on Wednesday, September 16th. The company reported C$1.29 earnings per share for the quarter. The firm had revenue of C$2.03 billion during the quarter. Dollarama had a return on equity of 97.52% and a net margin of 17.32%. On average, research analysts anticipate that Dollarama Inc. will post 5.33 EPS for the current year.

Dollarama Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 6th. Stockholders of record on Friday, November 6th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date is Friday, October 9th. Dollarama's dividend payout ratio is currently 9.07%.

About Dollarama

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company's product offerings. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.

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