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

Key Points

• K-Bro Linen shares crossed above their 200-day moving average, reaching C$42.50 and last trading at C$42.35, although the price remained below the 50-day average of C$45.69.
• Analyst sentiment is strongly positive: one analyst rates the stock a Strong Buy and five rate it Buy, with a consensus price target of C$53.17 after several target increases.
• The company reported quarterly EPS of C$0.78 on revenue of C$150.36 million, while profitability remained modest with a 3.67% net margin and 7.89% return on equity.

K-Bro Linen Inc. (TSE:KBL - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$41.41 and traded as high as C$42.50. K-Bro Linen shares last traded at C$42.35, with a volume of 11,782 shares trading hands.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. TD Securities raised K-Bro Linen to a "strong-buy" rating in a research note on Friday, July 24th. ATB Cormark Capital Markets raised 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 note on Thursday, August 6th. Stifel Nicolaus boosted their price objective 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. National Bank Financial upped their target price on K-Bro Linen from C$51.00 to C$54.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 28th. Finally, Raymond James Financial increased their target price on K-Bro Linen from C$50.00 to C$54.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of C$53.17.

K-Bro Linen Price Performance

The stock has a market capitalization of C$544.88 million, a P/E ratio of 24.77, a price-to-earnings-growth ratio of 3.50 and a beta of 0.91. The business has a fifty day simple moving average of C$45.69 and a 200 day simple moving average of C$41.41. The company has a current ratio of 1.85, a quick ratio of 0.87 and a debt-to-equity ratio of 113.71.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.