MTY Food Group (TSE:MTY) Share Price Breaks Above 50 Day Moving Average - Here's What Happened

Key Points

• MTY Food Group shares crossed above their 50-day moving average, reaching C$33.01 before closing at C$32.75, while still below the 200-day average of C$37.12.
• Analysts remain cautious: one rates the stock Buy and seven rate it Hold, producing an average rating of “Hold” and an average price target of C$41.12. Several brokerages recently lowered their targets.
• MTY reported C$1.26 in quarterly EPS on C$277.73 million in revenue and increased its quarterly dividend to C$0.50, implying a 6.1% annualized yield and a 30.06% payout ratio.

Shares of MTY Food Group Inc. (TSE:MTY - Get Free Report) crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of C$32.59 and traded as high as C$33.01. MTY Food Group shares last traded at C$32.75, with a volume of 124,139 shares changing hands.

Wall Street Analyst Weigh In

Several brokerages recently commented on MTY. Raymond James Financial reduced their price objective on shares of MTY Food Group from C$40.00 to C$35.00 and set a "market perform" rating for the company in a research note on Tuesday, October 13th. Acumen Capital cut their price target on shares of MTY Food Group from C$50.00 to C$48.00 and set a "buy" rating for the company in a report on Monday, July 13th. National Bank Financial decreased their price target on shares of MTY Food Group from C$40.00 to C$37.00 and set a "sector perform" rating on the stock in a report on Tuesday, October 13th. Scotia lowered their price objective on MTY Food Group from C$45.00 to C$40.00 and set a "sector perform" rating on the stock in a research report on Monday, July 13th. Finally, Royal Bank Of Canada dropped their price objective on MTY Food Group from C$46.00 to C$41.00 and set a "sector perform" rating for the company in a research note on Monday, July 13th. One analyst has rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of C$41.12.

MTY Food Group Price Performance

The firm has a market capitalization of C$748.04 million, a P/E ratio of 6.84, a PEG ratio of 0.75 and a beta of 0.98. The business's 50-day simple moving average is C$32.59 and its 200 day simple moving average is C$37.12. The company has a quick ratio of 0.56, a current ratio of 0.75 and a debt-to-equity ratio of 117.99.

MTY Food Group (TSE:MTY - Get Free Report) last posted its quarterly earnings results on Friday, October 9th. The company reported C$1.26 EPS for the quarter. MTY Food Group had a net margin of 9.67% and a return on equity of 12.54%. The company had revenue of C$277.73 million during the quarter. Sell-side analysts forecast that MTY Food Group Inc. will post 4.49 earnings per share for the current year.

MTY Food Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, November 13th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 6.1%. This is a positive change from MTY Food Group's previous quarterly dividend of $0.37. The ex-dividend date of this dividend is Tuesday, November 3rd. MTY Food Group's dividend payout ratio is presently 30.06%.

About MTY Food Group

MTY Group franchises and operates quick-service, fast casual and casual dining restaurants over 80 different banners in Canada, the US and Internationally. Based in Montreal, MTY is a family whose heart beats to the rhythm of its brands, the very soul of its multi-branded strategy. For over 45 years, it has been increasing its presence by delivering new concepts of restaurants, making acquisitions, and forging strategic alliances, which have allowed it to reach new heights year after year. By combining new trends with operational know-how, the brands forming the MTY Group now touch the lives of millions of people every year.

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.