Richelieu Hardware (TSE:RCH) Stock Price Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Richelieu Hardware shares moved above their 200-day moving average, reaching C$38.70 before closing at C$37.89, compared with the 200-day average of C$37.73.
• Analysts maintain a cautious outlook: the consensus rating is “Hold” with a target price of C$39.25, while recent price-target changes range from C$39.00 to C$39.50.
• The company reported quarterly EPS of C$0.53 on C$562 million in revenue and declared a quarterly dividend of C$0.1566, equivalent to a 1.7% annual yield.

Richelieu Hardware Ltd. (TSE:RCH - Get Free Report) shares passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of C$37.73 and traded as high as C$38.70. Richelieu Hardware shares last traded at C$37.89, with a volume of 88,306 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on RCH shares. National Bank Financial upped their price objective on Richelieu Hardware from C$38.50 to C$39.50 and gave the stock a "sector perform" rating in a report on Friday, October 9th. Canadian Imperial Bank of Commerce cut their price objective on Richelieu Hardware from C$42.00 to C$39.00 in a research report on Monday, July 13th. One equities research analyst has rated the stock with a Hold rating. Based on data from MarketBeat, Richelieu Hardware currently has a consensus rating of "Hold" and a consensus target price of C$39.25.

Richelieu Hardware Stock Down 0.8%

The company has a debt-to-equity ratio of 34.76, a current ratio of 3.23 and a quick ratio of 0.71. The company has a market capitalization of C$2.08 billion, a price-to-earnings ratio of 22.55, a price-to-earnings-growth ratio of 0.77 and a beta of 0.84. The firm's 50-day simple moving average is C$36.00 and its two-hundred day simple moving average is C$37.73.

Richelieu Hardware (TSE:RCH - Get Free Report) last posted its quarterly earnings results on Thursday, October 8th. The company reported C$0.53 earnings per share (EPS) for the quarter. The company had revenue of C$562.00 million during the quarter. Richelieu Hardware had a net margin of 4.47% and a return on equity of 9.49%.

Richelieu Hardware Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Thursday, November 5th will be paid a $0.1566 dividend. This represents a $0.63 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, October 22nd. Richelieu Hardware's dividend payout ratio (DPR) is presently 37.09%.

About Richelieu Hardware

Richelieu Hardware Ltd is a Canada-based company that imports, manufactures, and distributes specialty hardware and complementary products. Headquartered in Montreal, the company operates across Canada and the eastern and midwestern regions of the United States. The majority of the company's sales are derived from its operations in Canada. Richelieu's products include furniture, glass, decorative, window, and door hardware, lighting systems, and kitchen and closet storage. The firm primarily serves home furnishing manufacturers, residential and commercial woodworkers, hardware retailers, and renovation superstores.

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