Premium Brands (TSE:PBH) Shares Break Below 200 Day Moving Average - What's Next?

Key Points

• Premium Brands shares fell below their 200-day moving average of C$83.29, reaching C$71.42 and last trading at C$71.83.
• Analysts broadly remain optimistic, with a consensus “Buy” rating and a C$116.25 price target, despite several firms recently lowering their targets.
• The company reported C$1.53 in quarterly EPS on C$2.38 billion in revenue, while profitability remained modest with a 1.01% net margin and 4.19% return on equity.

Premium Brands Holdings Co. (TSE:PBH - 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$83.29 and traded as low as C$71.42. Premium Brands shares last traded at C$71.83, with a volume of 102,413 shares.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on PBH. Canadian Imperial Bank of Commerce decreased their price target on Premium Brands from C$115.00 to C$100.00 and set a "strong-buy" rating for the company in a report on Friday, August 7th. National Bank Financial dropped their price target on Premium Brands from C$108.00 to C$98.00 and set a "sector perform" rating on the stock in a research report on Friday, August 7th. Canaccord Genuity Group dropped their price target on Premium Brands from C$123.00 to C$117.00 in a research report on Friday, August 7th. Desjardins reduced their price objective on Premium Brands from C$120.00 to C$110.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Finally, ATB Cormark Capital Markets decreased their target price on shares of Premium Brands from C$150.00 to C$130.00 and set an "outperform" rating for the company in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of C$116.25.

Premium Brands Stock Performance

The company has a market capitalization of C$3.73 billion, a price-to-earnings ratio of 43.80, a P/E/G ratio of 1.10 and a beta of 0.84. The company has a debt-to-equity ratio of 153.93, a quick ratio of 1.16 and a current ratio of 1.36. The firm's 50 day simple moving average is C$76.02 and its 200-day simple moving average is C$83.29.

Premium Brands (TSE:PBH - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported C$1.53 EPS for the quarter. Premium Brands had a net margin of 1.01% and a return on equity of 4.19%. The business had revenue of C$2.38 billion for the quarter. Analysts expect that Premium Brands Holdings Co. will post 6.04 EPS for the current year.

About Premium Brands

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.

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