Maple Leaf Foods (TSE:MFI) Shares Cross Below 200 Day Moving Average - Time to Sell?

Key Points

• Maple Leaf Foods shares fell below their 200-day moving average, trading as low as C$26.47 versus the average of C$28.98. The stock last traded at C$26.62.
• Despite the technical weakness, analysts maintain a consensus “Buy” rating with an average price target of C$36.33, well above the recent share price. Several firms recently lowered their targets but remained bullish.
• The company reported quarterly EPS of C$0.44 on C$1.02 billion in revenue and announced a quarterly dividend of C$0.21 per share, representing a 3.2% annualized yield. Director Andrew Gordon Macdonald also increased his holdings by purchasing 10,000 shares.

Maple Leaf Foods Inc. (TSE:MFI - Get Free Report) shares crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$28.98 and traded as low as C$26.47. Maple Leaf Foods shares last traded at C$26.62, with a volume of 283,008 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Canaccord Genuity Group decreased their price objective on shares of Maple Leaf Foods from C$39.00 to C$37.00 and set a "buy" rating for the company in a report on Thursday, August 13th. Desjardins set a C$39.00 price target on shares of Maple Leaf Foods and gave the stock a "buy" rating in a research note on Thursday, June 4th. Ventum Financial lowered their price target on shares of Maple Leaf Foods from C$39.00 to C$37.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Canadian Imperial Bank of Commerce set a C$36.00 price objective on Maple Leaf Foods and gave the company an "outperformer" rating in a research note on Monday, July 27th. Finally, Scotiabank reduced their price objective on Maple Leaf Foods from C$36.00 to C$33.00 and set a "sector outperform" rating for the company in a report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating and eleven have given a Buy rating to the company. Based on data from MarketBeat, Maple Leaf Foods has an average rating of "Buy" and a consensus target price of C$36.33.

Maple Leaf Foods Stock Performance

The company has a debt-to-equity ratio of 97.47, a current ratio of 1.56 and a quick ratio of 0.54. The firm has a market capitalization of C$3.31 billion, a PE ratio of 6.54, a P/E/G ratio of 18.07 and a beta of 0.34. The company's fifty day simple moving average is C$27.86 and its 200 day simple moving average is C$28.98.

Maple Leaf Foods (TSE:MFI - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The company reported C$0.44 earnings per share (EPS) for the quarter. The company had revenue of C$1.02 billion for the quarter. Maple Leaf Foods had a net margin of 13.08% and a return on equity of 36.83%. As a group, equities research analysts expect that Maple Leaf Foods Inc. will post 1.4334187 EPS for the current fiscal year.

Maple Leaf Foods Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 29th will be issued a dividend of $0.21 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $0.84 dividend on an annualized basis and a yield of 3.2%. Maple Leaf Foods's payout ratio is presently 20.88%.

Insider Transactions at Maple Leaf Foods

In related news, Director Andrew Gordon Macdonald bought 10,000 shares of the company's stock in a transaction on Friday, September 4th. The shares were purchased at an average price of C$26.78 per share, for a total transaction of C$267,800.00. Following the completion of the transaction, the director directly owned 72,200 shares in the company, valued at approximately C$1,933,516. The trade was a 16.08% increase in their position. 39.87% of the stock is owned by insiders.

Maple Leaf Foods Company Profile

Maple Leaf Foods Inc is a consumer-packaged meats company. It produces prepared meats and meals, fresh pork, and poultry and turkey products. The company also has agribusiness operations. These operations supply livestock to the meat products business operations. Its main markets are Canada, the United States, Japan, and China. The key brands are Maple Leaf and Schneiders, Maple Leaf Prime Naturally, Shopsy, Mitchell's Gourmet Food, Larse, Parm, and Hygrade.

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