Loblaw Companies (TSE:L) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• Loblaw shares reached a new 52-week high of C$70.27 after National Bank Financial raised its price target from C$70 to C$72 and maintained an outperform rating.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of C$71.67; several firms recently increased their targets or ratings.
• Insiders sold approximately 324,121 shares worth C$20.1 million over the past 90 days, while Loblaw reported C$15.05 billion in quarterly revenue and a quarterly dividend of C$0.1552 per share.

Loblaw Companies Limited (TSE:L - Get Free Report) shares reached a new 52-week high on Thursday after National Bank Financial raised their price target on the stock from C$70.00 to C$72.00. National Bank Financial currently has an outperform rating on the stock. Loblaw Companies traded as high as C$70.27 and last traded at C$70.27, with a volume of 49,790 shares. The stock had previously closed at C$68.46.

A number of other equities research analysts also recently weighed in on the company. Desjardins raised their target price on Loblaw Companies from C$70.00 to C$72.00 and gave the company a "buy" rating in a report on Friday, July 31st. TD set a C$75.00 price objective on Loblaw Companies and gave the stock a "buy" rating in a research report on Thursday, September 10th. Scotia lifted their target price on Loblaw Companies from C$64.00 to C$67.00 and gave the company a "sector perform" rating in a research report on Friday, July 31st. BMO Capital Markets boosted their target price on 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. Finally, TD Securities raised shares of Loblaw Companies to a "strong-buy" rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of C$71.67.

Insiders Place Their Bets

In other news, insider Mark William Henry Wilson sold 24,496 shares of the business's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of C$62.68, for a total value of C$1,535,409.28. Also, insider Per Bank sold 39,762 shares of the 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 transaction, the insider owned 203,623 shares in the company, valued at C$12,626,662.23. The trade was a 16.34% decrease in their ownership of the stock. In the last ninety days, insiders sold 324,121 shares of company stock worth $20,118,530. Company insiders own 53.77% of the company's stock.

Loblaw Companies Stock Performance

The company has a debt-to-equity ratio of 151.15, a current ratio of 1.06 and a quick ratio of 0.68. The company's fifty day moving average price is C$62.82 and its 200 day moving average price is C$63.12. The company has a market cap of C$81.78 billion, a PE ratio of 29.99, a P/E/G ratio of 3.23 and a beta of 0.02.

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

Loblaw Companies Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, October 1st were given a dividend of $0.1552 per share. The ex-dividend date was Tuesday, September 15th. This represents a $0.62 annualized dividend and a dividend yield of 0.9%. Loblaw Companies's dividend payout ratio is 24.51%.

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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