Hammond Power Solutions (TSE:HPS.A) Stock Price Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Hammond Power Solutions shares fell below their 200-day moving average, trading as low as C$218.99 and last changing hands at C$229.86, versus the 200-day average of C$261.66.
• Despite the technical weakness, analysts remain bullish: seven analysts rate the stock a Buy, with a consensus price target of C$371.86 and recent targets ranging from C$350 to C$430.
• The company reported quarterly EPS of C$2.76 on revenue of C$324.80 million, alongside a 28.43% return on equity and an 8.73% net margin.

Hammond Power Solutions Inc. (TSE:HPS.A - Get Free Report) shares passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$261.66 and traded as low as C$218.99. Hammond Power Solutions shares last traded at C$229.86, with a volume of 53,649 shares traded.

Analyst Ratings Changes

Several research analysts recently weighed in on HPS.A shares. Raymond James Financial set a C$405.00 target price on Hammond Power Solutions and gave the company an "outperform" rating in a research note on Tuesday, June 30th. National Bank Financial boosted their price target on shares of Hammond Power Solutions from C$325.00 to C$355.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 10th. ATB Cormark Capital Markets upped their price target on shares of Hammond Power Solutions from C$250.00 to C$350.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. Canaccord Genuity Group raised their price objective on shares of Hammond Power Solutions from C$226.00 to C$348.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Finally, JPMorgan Chase & Co. set a C$430.00 price objective on shares of Hammond Power Solutions and gave the stock an "overweight" rating in a research note on Thursday, May 28th. Seven analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of C$371.86.

Hammond Power Solutions Price Performance

The company has a market cap of C$2.74 billion, a price-to-earnings ratio of 44.46 and a beta of 1.30. The company has a current ratio of 2.03, a quick ratio of 1.06 and a debt-to-equity ratio of 10.76. The business has a 50-day moving average price of C$274.50 and a 200 day moving average price of C$261.66.

Hammond Power Solutions (TSE:HPS.A - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported C$2.76 earnings per share (EPS) for the quarter. The business had revenue of C$324.80 million for the quarter. Hammond Power Solutions had a return on equity of 28.43% and a net margin of 8.73%. As a group, research analysts expect that Hammond Power Solutions Inc. will post 7.4221267 earnings per share for the current fiscal year.

Hammond Power Solutions Company Profile

Hammond Power Solutions Inc is engaged in designing and manufacturing of custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico.

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