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$88.83 compared with the C$91.24 average, before closing at C$89.51.
• Analyst sentiment is mostly cautious: seven analysts rate the stock “Hold,” while the consensus price target is C$102.33, above its recent trading price.
• Metro reported quarterly revenue of C$6.97 billion and earnings of C$1.24 per share, and declared a quarterly dividend of C$0.4075 per share, equivalent to a 1.8% annual yield.

Metro Inc. (TSE:MRU - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of C$91.24 and traded as low as C$88.83. Metro shares last traded at C$89.51, with a volume of 517,882 shares traded.

Analyst Upgrades and Downgrades

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

Metro Stock Performance

The stock has a market cap of C$18.73 billion, a price-to-earnings ratio of 21.26, a P/E/G ratio of 4.06 and a beta of 0.12. The company has a quick ratio of 0.41, a current ratio of 1.43 and a debt-to-equity ratio of 71.09. The company has a 50 day simple moving average of C$90.07 and a 200 day simple moving average of C$91.24.

Metro (TSE:MRU - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported C$1.24 earnings per share 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 research analysts forecast that Metro Inc. will post 4.8188614 EPS for the current year.

Metro Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Tuesday, November 10th will be issued a dividend of $0.4075 per share. This represents a $1.63 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Thursday, October 22nd. Metro's payout ratio is 36.94%.

Insider Buying and Selling at Metro

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

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