Saputo (TSE:SAP) Share Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Saputo shares moved above their 200-day moving average, reaching C$41.53 and closing near C$41.23, compared with the average of C$41.22.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of C$48.10. Recent targets range from C$45 to C$53, although Jefferies downgraded the stock to “hold.”
• Saputo increased its quarterly dividend to C$0.21 per share, representing an annualized payout of C$0.84 and a 2.0% yield. The company reported quarterly revenue of C$4.42 billion and earnings of C$0.49 per share.

Shares of Saputo Inc. (TSE:SAP - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of C$41.22 and traded as high as C$41.53. Saputo shares last traded at C$41.23, with a volume of 442,288 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. National Bank Financial boosted their target price on shares of Saputo from C$44.00 to C$45.00 and gave the company a "sector perform" rating in a research note on Monday, August 10th. TD increased their target price on shares of Saputo from C$51.00 to C$53.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Ventum Financial set a C$49.00 price target on shares of Saputo and gave the stock a "buy" rating in a research note on Monday, August 10th. Canadian Imperial Bank of Commerce set a C$45.00 price target on shares of Saputo and gave the stock a "hold" rating in a report on Thursday, October 22nd. Finally, Jefferies Financial Group cut shares of Saputo from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of C$48.10.

Saputo Price Performance

The company has a debt-to-equity ratio of 41.86, a quick ratio of 0.67 and a current ratio of 1.51. The company has a market cap of C$16.37 billion, a P/E ratio of 33.25, a P/E/G ratio of 0.56 and a beta of 0.19. The firm has a 50 day moving average price of C$39.94 and a two-hundred day moving average price of C$41.22.

Saputo (TSE:SAP - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported C$0.49 earnings per share for the quarter. Saputo had a return on equity of 7.45% and a net margin of 2.80%. The company had revenue of C$4.42 billion during the quarter. On average, analysts predict that Saputo Inc. will post 1.77 EPS for the current fiscal year.

Saputo Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 25th were given a dividend of $0.21 per share. This is a boost from Saputo's previous quarterly dividend of $0.20. This represents a $0.84 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date was Tuesday, September 15th. Saputo's dividend payout ratio (DPR) is 64.52%.

Saputo Company Profile

Saputo, one of the top ten dairy processors in the world, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada and a leading dairy processor in Australia. In the USA, Saputo ranks among the top three cheese producers and is one of the top producers of extended shelf-life and cultured dairy products.

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