Saputo (TSE:SAP) Downgraded to "Sector Perform" Rating by National Bank Financial

Key Points

• National Bank Financial downgraded Saputo from "outperform" to "sector perform" and set a C$46 price objective, implying about a 12.3% upside from the recent trading price of C$40.96.
• Several other analysts raised targets (including RBC to C$50 and TD to C$52), leaving a consensus rating of Moderate Buy and an average price target of C$46.25.
• Saputo shares fell to C$40.96 on the day; the company reported C$0.57 EPS and C$4.89B revenue for the quarter, while insiders have been selling (e.g., Patrick Turcotte) but still own about 40.45% of the stock.

Saputo (TSE:SAP - Get Free Report) was downgraded by equities researchers at National Bank Financial from an "outperform" rating to a "sector perform" rating in a research note issued on Monday,BayStreet.CA reports. They currently have a C$46.00 price objective on the stock. National Bank Financial's price objective would indicate a potential upside of 12.30% from the company's current price.

Several other equities research analysts also recently issued reports on the stock. BMO Capital Markets increased their price objective on shares of Saputo from C$41.00 to C$42.00 and gave the stock a "market perform" rating in a research report on Monday, February 9th. Desjardins increased their price target on shares of Saputo from C$45.00 to C$47.00 and gave the company a "buy" rating in a research note on Monday, February 9th. Canadian Imperial Bank of Commerce increased their price objective on shares of Saputo from C$40.00 to C$44.00 in a research report on Friday, January 30th. Royal Bank Of Canada increased their price objective on shares of Saputo from C$47.00 to C$50.00 and gave the company an "outperform" rating in a research report on Sunday, February 8th. Finally, TD Securities raised their price target on shares of Saputo from C$51.00 to C$52.00 and gave the stock a "buy" rating in a research report on Sunday, February 15th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of C$46.25.

Saputo Price Performance

Shares of Saputo stock traded down C$4.10 during trading on Monday, hitting C$40.96. 976,253 shares of the company's stock traded hands, compared to its average volume of 1,013,935. The company has a debt-to-equity ratio of 59.15, a current ratio of 1.64 and a quick ratio of 0.67. The firm's fifty day moving average price is C$42.86 and its 200 day moving average price is C$39.69. Saputo has a twelve month low of C$25.17 and a twelve month high of C$45.09. The company has a market cap of C$16.60 billion, a PE ratio of 26.26, a PEG ratio of 0.56 and a beta of 0.10.

Saputo (TSE:SAP - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported C$0.57 earnings per share for the quarter. Saputo had a net margin of 3.39% and a return on equity of 9.50%. The company had revenue of C$4.89 billion during the quarter. Analysts forecast that Saputo will post 1.7735369 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Patrick Turcotte sold 2,071 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of C$42.18, for a total value of C$87,354.78. Following the transaction, the insider owned 8,336 shares in the company, valued at approximately C$351,612.48. The trade was a 19.90% decrease in their position. In the last 90 days, insiders have sold 2,659 shares of company stock worth $112,169. 40.45% of the stock is owned by company insiders.

About Saputo

Saputo is a global dairy processor domiciled in Canada (28% of fiscal 2022 sales) with operations in the United States (43%), the U.K. (6%), and other international markets (23%). It sells cheese, cream, fluid milk, and other dairy products. In the retail segment (50% of revenue), its mix of brands include Saputo, Armstrong, Cheer, Cathedral City, and Frylight. Saputo also competes in food service (30% of revenue) and industrials (20% of revenue), which houses its ingredients business.

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