Propel (TSE:PRL) Shares Cross Above 50 Day Moving Average - Time to Sell?

Key Points

• Propel shares rose 2.5% to C$25.07, moving above their 50-day moving average of C$24.86; the stock’s 200-day average is C$23.29.
• Analyst sentiment remains positive, with an overall “Buy” rating and price targets ranging from C$29 to C$38, including upgrades from TD Securities and higher targets from Scotia, Ventum, TD, and ATB Cormark.
• Propel’s latest quarter fell short of estimates, reporting C$0.58 EPS versus C$0.66 expected and revenue of C$179.6 million versus C$251.89 million; however, the company raised its quarterly dividend to C$0.255, equating to a 4.1% yield.

Shares of Propel Holdings Inc. (TSE:PRL - Get Free Report) passed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $24.86 and traded as high as $25.07. Propel shares last traded at $25.07, with a volume of 185,667 shares trading hands.

Analysts Set New Price Targets

A number of research analysts have issued reports on PRL shares. TD Securities upgraded shares of Propel to a "strong-buy" rating in a research report on Tuesday, July 14th. Scotia upped their price objective on shares of Propel from C$27.00 to C$29.00 and gave the stock a "sector perform" rating in a research report on Friday, August 7th. Ventum boosted their price target on Propel from C$30.00 to C$34.00 and gave the stock a "buy" rating in a report on Friday, August 7th. TD set a C$37.00 target price on shares of Propel and gave the stock a "buy" rating in a research report on Wednesday, October 14th. Finally, ATB Cormark Capital Markets upped their price target on shares of Propel from C$29.00 to C$38.00 and gave the company an "outperform" rating in a research report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Buy".

Propel Stock Up 2.5%

The firm's 50-day simple moving average is $24.86 and its 200 day simple moving average is $23.29. The firm has a market cap of $986.81 million, a P/E ratio of 18.30 and a beta of 0.88.

Propel (TSE:PRL - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.58 EPS for the quarter, missing analysts' consensus estimates of $0.66 by ($0.08). Propel had a return on equity of 21.12% and a net margin of 8.81%. The company had revenue of $179.60 million during the quarter, compared to the consensus estimate of $251.89 million. As a group, analysts forecast that Propel Holdings Inc. will post 5.39 earnings per share for the current year.

Propel Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, September 3rd were issued a $0.2550 dividend. This represents a $1.02 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend was Friday, August 14th. This is an increase from Propel's previous quarterly dividend of $0.24. Propel's payout ratio is 46.03%.

Insider Activity

In other news, insider Cindy Usprech sold 9,196 shares of the business's stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $25.86, for a total transaction of $237,808.56. Company insiders own 33.31% of the company's stock.

Propel Company Profile

Propel Holdings Inc is a financial technology company committed to credit inclusion and helping underserved consumers by providing fair, fast, and transparent access to credit. It operates through its two brands: MoneyKey and CreditFresh. The company, through its MoneyKey brand, is a state-licensed direct lender and offers either Installment Loans or Lines of Credit to new customers in several US states. Through its CreditFresh brand, the company operates as a bank servicer that provides marketing, technology, and loan servicing services to unaffiliated, FDIC insured, state-chartered banks in the US (Bank Program).

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