Metro (TSE:MRU) Stock Price Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Metro shares fell below their 200-day moving average, trading as low as C$89.47 versus the C$91.56 average, with the stock last down 0.6% at C$89.69.
• Analyst sentiment is broadly cautious: Metro has an average “Hold” rating and a C$102.33 price target, despite TD raising its target to C$108 and upgrading the stock to “strong buy.”
• The company reported quarterly EPS of C$1.24 on revenue of C$6.97 billion and maintains a quarterly dividend of C$0.4075 per share, representing a 1.8% annualized yield.

Metro Inc. (TSE:MRU - Get Free Report) shares crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of C$91.56 and traded as low as C$89.47. Metro shares last traded at C$89.69, with a volume of 919,364 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. TD raised their price objective on Metro from C$106.00 to C$108.00 and gave the company a "buy" rating in a report on Thursday, August 13th. BMO Capital Markets cut Metro from an "outperform" rating to a "hold" rating and lowered their target price for the stock from C$105.00 to C$95.00 in a report on Monday, July 20th. Royal Bank Of Canada dropped their target price on Metro from C$111.00 to C$110.00 and set a "sector perform" rating for the company in a research report on Thursday, August 13th. National Bank Financial cut their price target on Metro from C$105.00 to C$102.00 and set a "sector perform" rating on the stock in a research note on Thursday, August 13th. Finally, TD Securities upgraded Metro to a "strong-buy" rating in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of C$102.33.

Metro Trading Down 0.6%

The company has a market cap of C$18.77 billion, a price-to-earnings ratio of 21.30, a PEG ratio of 4.06 and a beta of 0.11. The firm has a 50 day moving average price of C$90.67 and a two-hundred day moving average price of C$91.56. The company has a quick ratio of 0.41, a current ratio of 1.43 and a debt-to-equity ratio of 71.09.

Metro (TSE:MRU - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The company reported C$1.24 EPS for the quarter. Metro had a return on equity of 12.87% and a net margin of 4.00%.The company had revenue of C$6.97 billion for the quarter. As a group, equities analysts forecast that Metro Inc. will post 4.8188614 earnings per share for the current year.

Metro Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Tuesday, September 22nd were given a dividend of $0.4075 per share. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $1.63 dividend on an annualized basis and a yield of 1.8%. Metro's dividend payout ratio is 36.94%.

Insiders Place Their Bets

In other Metro news, insider Alain Tadros sold 960 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of C$90.27, for a total transaction of C$86,659.20. Following the completion of the sale, the insider directly owned 5,952 shares in the company, valued at approximately C$537,287.04. This trade represents a 13.89% decrease in their position. Also, insider Simon Rivet sold 2,650 shares of Metro stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of C$89.35, for a total value of C$236,777.50. Following the completion of the transaction, the insider directly owned 20,225 shares of the company's stock, valued at approximately C$1,807,103.75. This trade represents a 11.58% decrease in their ownership of the stock. Corporate insiders own 0.14% of the company's stock.

Metro Company Profile

With annual sales of more than $22 billion, METRO Inc is a food and pharmacy leader in Québec and Ontario, providing employment to more than 97,000 people. Its purpose is to Nourish the health and well-being of our communities. As a retailer, franchisor, distributor, manufacturer, and provider of eCommerce services, the company operates or services a network of some 1,000 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson, and some 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.