Metro (TSE:MRU) Stock Price Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Metro shares fell below their 200-day moving average, trading as low as C$89.96 before closing at C$91.40, which may signal weakening technical momentum.
• Analyst sentiment remains cautious: the consensus rating is “Hold” from nine analysts, with an average price target of C$102.33—above the current share price—while several firms recently lowered targets.
• Metro reported quarterly revenue of C$6.97 billion and EPS of C$1.24, and declared a quarterly dividend of C$0.4075, representing a 1.8% annualized yield and a 36.94% payout ratio.

Metro Inc. (TSE:MRU - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$91.79 and traded as low as C$89.96. Metro shares last traded at C$91.40, with a volume of 377,566 shares trading hands.

Wall Street Analyst Weigh In

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

Metro Stock Performance

The firm's fifty day moving average price is C$90.96 and its 200 day moving average price is C$91.79. The company has a current ratio of 1.43, a quick ratio of 0.41 and a debt-to-equity ratio of 71.09. The stock has a market capitalization of C$19.13 billion, a price-to-earnings ratio of 21.71, a price-to-earnings-growth ratio of 4.06 and a beta of 0.11.

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

Metro Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Tuesday, September 22nd will be paid a $0.4075 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $1.63 dividend on an annualized basis and a dividend yield of 1.8%. Metro's payout ratio is presently 36.94%.

Insider Buying and Selling at Metro

In other news, insider Alain Tadros sold 960 shares of the company's stock in a transaction on 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 sale, the insider owned 5,952 shares of the company's stock, valued at approximately C$537,287.04. This represents a 13.89% decrease in their ownership of the stock. Also, insider Simon Rivet sold 2,650 shares of the stock in a transaction on 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 approximately C$1,807,103.75. The trade was a 11.58% decrease in their ownership of the stock. 0.14% of the stock is currently owned by insiders.

About Metro

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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