Saputo (TSE:SAP) Share Price Passes Above 200-Day Moving Average - Time to Sell?

Key Points

• Saputo crossed above its 200-day moving average (200‑day MA C$40.18) and last traded around C$40.77 on volume of about 776,097 shares.
• Several brokerages have raised price targets and ratings recently, leaving a MarketBeat consensus of Moderate Buy with a consensus price target of C$46.33.
• The company has a market cap of C$16.52 billion and a P/E of 26.13, pays an annualized dividend of C$0.80 (yield ~2.0%) with a 50% payout ratio, and insiders have sold recently but still own 40.45% of shares.

Saputo Inc. (TSE:SAP - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$40.18 and traded as high as C$40.89. Saputo shares last traded at C$40.77, with a volume of 776,097 shares changing hands.

Analyst Ratings Changes

A number of brokerages recently weighed in on SAP. Canadian Imperial Bank of Commerce raised their price objective on Saputo from C$40.00 to C$44.00 in a research report on Friday, January 30th. Desjardins boosted their target price on shares of Saputo from C$45.00 to C$47.00 and gave the stock a "buy" rating in a report on Monday, February 9th. BMO Capital Markets raised their price target on shares of Saputo from C$41.00 to C$42.00 and gave the company a "market perform" rating in a report on Monday, February 9th. Royal Bank Of Canada lifted their price objective on shares of Saputo from C$47.00 to C$50.00 and gave the stock an "outperform" rating in a research report on Sunday, February 8th. Finally, Scotiabank boosted their price objective on shares of Saputo from C$47.00 to C$49.00 and gave the stock an "outperform" rating in a research note on Friday, February 13th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of C$46.33.

Saputo Stock Up 1.1%

The company's 50-day moving average is C$42.08 and its 200 day moving average is C$40.18. The stock has a market capitalization of C$16.52 billion, a PE ratio of 26.13, a price-to-earnings-growth ratio of 0.56 and a beta of 0.10. The company has a current ratio of 1.64, a quick ratio of 0.67 and a debt-to-equity ratio of 59.15.

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

Saputo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, March 13th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Tuesday, March 3rd. Saputo's dividend payout ratio is presently 50.00%.

Insider Transactions at Saputo

In other Saputo news, insider Patrick Turcotte sold 2,071 shares of Saputo stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of C$42.18, for a total transaction of C$87,354.78. Following the completion of the sale, the insider owned 8,336 shares of the company's stock, valued at approximately C$351,612.48. The trade was a 19.90% decrease in their position. In the last ninety days, insiders sold 2,659 shares of company stock valued at $112,169. Company insiders own 40.45% of the company's stock.

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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