Loblaw Companies (TSE:L) Stock Breaks Below 200-Day Moving Average - Here's What Happened

Key Points

• Loblaw shares fell below their 200-day moving average of C$62.93, reaching C$61.70 before closing at C$62.16 on trading volume of 1.15 million shares.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of C$71.44, implying upside from the reported share price.
• The company reported quarterly EPS of C$0.66 on C$15.05 billion in revenue, paid a quarterly dividend of C$0.1552 per share, and insiders sold more than 324,000 shares over the prior 90 days.

Loblaw Companies Limited (TSE:L - Get Free Report) crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of C$62.93 and traded as low as C$61.70. Loblaw Companies shares last traded at C$62.16, with a volume of 1,147,214 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on L shares. Desjardins boosted their price target on Loblaw Companies from C$70.00 to C$72.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Scotia increased their price objective on shares of Loblaw Companies from C$64.00 to C$67.00 and gave the stock a "sector perform" rating in a research note on Friday, July 31st. TD Securities raised shares of Loblaw Companies to a "strong-buy" rating in a report on Wednesday, July 29th. TD set a C$75.00 target price on shares of Loblaw Companies and gave the company a "buy" rating in a report on Thursday, September 10th. Finally, National Bank Financial set a C$70.00 target price on shares of Loblaw Companies and gave the company an "outperform" rating in a research report on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, Loblaw Companies has a consensus rating of "Moderate Buy" and an average price target of C$71.44.

Loblaw Companies Stock Performance

The stock has a fifty day simple moving average of C$62.57 and a two-hundred day simple moving average of C$62.93. The company has a debt-to-equity ratio of 151.15, a quick ratio of 0.68 and a current ratio of 1.06. The stock has a market cap of C$71.83 billion, a price-to-earnings ratio of 26.34, a P/E/G ratio of 3.23 and a beta of 0.06.

Loblaw Companies (TSE:L - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported C$0.66 EPS for the quarter. The firm had revenue of C$15.05 billion during the quarter. Loblaw Companies had a net margin of 4.32% and a return on equity of 25.25%. Analysts expect that Loblaw Companies Limited will post 9.1225541 EPS for the current fiscal year.

Loblaw Companies Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, October 1st were issued a dividend of $0.1552 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.62 annualized dividend and a dividend yield of 1.0%. Loblaw Companies's dividend payout ratio (DPR) is 24.51%.

Insider Buying and Selling

In related news, insider David Markwell sold 56,240 shares of the business's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of C$62.07, for a total transaction of C$3,490,816.80. Also, insider Mark William Henry Wilson sold 24,496 shares of the company'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. Insiders have sold 324,121 shares of company stock worth $20,118,530 in the last 90 days. 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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