Loblaw Companies (TSE:L) Hits New 12-Month High - Time to Buy?

Key Points

• Loblaw shares reached a new 52-week high of C$69.67 and were last trading at C$69.31, giving the company a market capitalization of approximately C$79.93 billion.
• Analysts remain generally bullish, with a consensus rating of “Moderate Buy” and an average price target of C$71.44; individual targets range from C$67 to C$75.
• Loblaw reported quarterly revenue of C$15.05 billion and earnings of C$0.66 per share, while its latest dividend equates to C$0.62 annually and a 0.9% yield. Insiders sold more than 324,000 shares worth approximately C$20.1 million during the quarter.

Loblaw Companies Limited (TSE:L - Get Free Report) shares reached a new 52-week high during mid-day trading on Friday. The stock traded as high as C$69.67 and last traded at C$69.31, with a volume of 74,276 shares changing hands. The stock had previously closed at C$69.00.

Wall Street Analyst Weigh In

Several analysts recently commented on L shares. TD set a C$75.00 target price on shares of Loblaw Companies and gave the stock a "buy" rating in a report on Thursday, September 10th. Desjardins lifted their price target on shares of Loblaw Companies from C$70.00 to C$72.00 and gave the company a "buy" rating in a research report on Friday, July 31st. National Bank Financial set a C$70.00 price target on shares of Loblaw Companies and gave the stock an "outperform" rating in a research note on Thursday, September 10th. Scotia upped their price target on shares of Loblaw Companies from C$64.00 to C$67.00 and gave the stock a "sector perform" rating in a report on Friday, July 31st. Finally, BMO Capital Markets boosted their price target on shares of Loblaw Companies from C$70.00 to C$73.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Loblaw Companies currently has an average rating of "Moderate Buy" and an average target price of C$71.44.

Loblaw Companies Stock Up 0.2%

The stock has a market cap of C$79.93 billion, a P/E ratio of 29.31, a PEG ratio of 3.23 and a beta of 0.02. The company has a current ratio of 1.06, a quick ratio of 0.68 and a debt-to-equity ratio of 151.15. The company's 50 day moving average price is C$62.27 and its two-hundred day moving average price is C$62.98.

Loblaw Companies (TSE:L - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported C$0.66 earnings per share for the quarter. Loblaw Companies had a return on equity of 25.25% and a net margin of 4.32%. The business had revenue of C$15.05 billion during the quarter. Equities analysts forecast that Loblaw Companies Limited will post 9.12 earnings per share for the current year.

Loblaw Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, October 1st were paid a $0.1552 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $0.62 dividend on an annualized basis and a yield of 0.9%. Loblaw Companies's dividend payout ratio (DPR) is 24.51%.

Insider Activity at Loblaw Companies

In other Loblaw Companies news, insider Per Bank sold 39,762 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of C$62.01, for a total value of C$2,465,641.62. Following the completion of the transaction, the insider directly owned 203,623 shares of the company's stock, valued at approximately C$12,626,662.23. The trade was a 16.34% decrease in their ownership of the stock. Also, insider David Markwell sold 56,240 shares of Loblaw Companies stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of C$62.07, for a total transaction of C$3,490,816.80. Insiders have sold a total of 324,121 shares of company stock worth $20,118,530 over the last quarter. Insiders own 53.77% of the company's stock.

About Loblaw Companies

Loblaw is Canada's food and pharmacy leader, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. With more than 2,800 corporate franchised and Associate-owned locations, Loblaw, its franchisees and Associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada's largest private sector employers. Loblaw's purpose - Live Life Well® - puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores.

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