K-Bro Linen (TSE:KBL) Shares Cross Above 200 Day Moving Average - Should You Sell?

Key Points

• K-Bro Linen shares rose above their 200-day moving average, reaching C$46.26 and last trading at C$46.09 versus a 200-day average of C$40.44.
• Analysts remain bullish, with one Strong Buy and five Buy ratings; the consensus price target is C$53.17, with targets ranging up to C$55.00.
• The company reported quarterly revenue of C$150.36 million and earnings per share of C$0.78, while recent insider activity included both a 1,225-share sale and a 2,670-share purchase.

Shares of K-Bro Linen Inc. (TSE:KBL - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$40.44 and traded as high as C$46.26. K-Bro Linen shares last traded at C$46.09, with a volume of 6,605 shares traded.

Wall Street Analysts Forecast Growth

KBL has been the topic of several research analyst reports. Stifel Nicolaus increased their price target on K-Bro Linen from C$52.00 to C$54.00 and gave the company a "buy" rating in a report on Thursday, August 6th. TD lifted their price objective on K-Bro Linen from C$50.00 to C$52.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. ATB Cormark Capital Markets upped their price objective on K-Bro Linen from C$50.00 to C$55.00 and gave the company an "outperform" rating in a research report on Thursday, August 6th. TD Securities raised K-Bro Linen to a "strong-buy" rating in a report on Friday, July 24th. Finally, National Bank Financial increased their target price on K-Bro Linen from C$51.00 to C$54.00 and gave the company an "outperform" rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of C$53.17.

K-Bro Linen Price Performance

The company has a market capitalization of C$592.99 million, a P/E ratio of 26.95, a price-to-earnings-growth ratio of 3.50 and a beta of 0.89. The company has a debt-to-equity ratio of 113.71, a current ratio of 1.85 and a quick ratio of 0.87. The firm's 50-day moving average is C$45.56 and its 200-day moving average is C$40.44.

K-Bro Linen (TSE:KBL - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported C$0.78 earnings per share for the quarter. K-Bro Linen had a net margin of 3.67% and a return on equity of 7.89%. The business had revenue of C$150.36 million for the quarter. Analysts predict that K-Bro Linen Inc. will post 2.3389262 EPS for the current fiscal year.

Insider Buying and Selling at K-Bro Linen

In related news, insider Jeffrey Ronald Gannon sold 1,225 shares of K-Bro Linen stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of C$42.00, for a total transaction of C$51,450.00. Following the transaction, the insider directly owned 15,407 shares in the company, valued at approximately C$647,094. The trade was a 7.37% decrease in their ownership of the stock. Also, insider K-Bro Linen Inc. purchased 2,670 shares of the business's stock in a transaction on Friday, May 29th. The shares were bought at an average cost of C$41.33 per share, with a total value of C$110,351.10. Following the acquisition, the insider directly owned 343,321 shares of the company's stock, valued at C$14,189,456.93. This trade represents a 0.78% increase in their position. 3.25% of the stock is currently owned by insiders.

About K-Bro Linen

K-Bro Linen Inc is a healthcare and hospitality laundry and linen processor in Canada. It operates in major cities across Canada, and has two distribution centers, providing management services and laundry processing of hospitality, healthcare, and specialty linens. The company provides vital products and services that help people heal, travel, live, and play. It helps hospitals and extended care centers care for the young, old, and vulnerable in environmentally responsible ways. It operates through two divisions, which are the Canadian division and the United Kingdom division.

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