Loblaw Companies (TSE:L) Stock Price Crosses Below 200 Day Moving Average - Should You Sell?

Key Points

• Loblaw shares briefly fell below their 200-day moving average of C$62.91, trading as low as C$62.58 before last changing hands at C$63.93.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of C$71.44, implying potential upside from the reported trading price.
• The company reported quarterly EPS of C$0.66 on C$15.05 billion in revenue and pays a quarterly dividend of C$0.1552 per share, while insiders have sold more than 324,000 shares in the past 90 days.

Loblaw Companies Limited (TSE:L - Get Free Report)'s stock price passed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of C$62.91 and traded as low as C$62.58. Loblaw Companies shares last traded at C$63.93, with a volume of 1,529,795 shares traded.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. BMO Capital Markets increased 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 report on Friday, July 31st. National Bank Financial set a C$70.00 target price on shares of Loblaw Companies and gave the stock an "outperform" rating in a report on Thursday, September 10th. Desjardins raised 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. TD set a C$75.00 price target on shares of Loblaw Companies and gave the stock a "buy" rating in a research note on Thursday, September 10th. Finally, Scotia upped their price objective on Loblaw Companies from C$64.00 to C$67.00 and gave the stock a "sector perform" rating in a research report on Friday, July 31st. One investment 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.com, the company currently has an average rating of "Moderate Buy" and an average target price of C$71.44.

Loblaw Companies Stock Up 2.1%

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 has a market cap of C$73.88 billion, a PE ratio of 27.09, a P/E/G ratio of 3.23 and a beta of 0.02. The business's 50 day moving average is C$62.12 and its 200-day moving average is C$62.91.

Loblaw Companies (TSE:L - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported C$0.66 earnings per share (EPS) for the quarter. The business 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%. As a group, analysts predict that Loblaw Companies Limited will post 9.12 EPS for the current year.

Loblaw Companies Announces Dividend

The firm 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. This represents a $0.62 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Tuesday, September 15th. Loblaw Companies's dividend payout ratio is currently 24.51%.

Insider Activity

In other news, insider David Markwell sold 56,240 shares of the business's 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. Also, insider Per Bank sold 203,623 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of C$62.01, for a total transaction of C$12,626,662.23. In the last 90 days, insiders have sold 324,121 shares of company stock worth $20,118,530. 53.77% of the stock is currently owned by insiders.

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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