Saputo (TSE:SAP) Stock Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• Saputo Inc. stock recently crossed above its 200-day moving average at C$27.56, reaching a high of C$34.59 during trading.
• Several analysts have raised their price targets for Saputo, with TD Securities increasing theirs to C$38.00, reflecting a strong outlook with a consensus rating of "Moderate Buy."
• The company announced a quarterly dividend increase to $0.20, boosting the annualized dividend yield to 2.3%, with an ex-dividend date set for September 2nd.

Shares of Saputo Inc. (TSE:SAP - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$27.56 and traded as high as C$34.59. Saputo shares last traded at C$34.25, with a volume of 448,421 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on SAP shares. National Bankshares upped their target price on Saputo from C$29.00 to C$35.00 and gave the stock an "outperform" rating in a report on Monday, August 11th. Royal Bank Of Canada upped their target price on Saputo from C$35.00 to C$37.00 and gave the stock an "outperform" rating in a report on Friday, August 8th. BMO Capital Markets upped their target price on Saputo from C$27.00 to C$34.00 in a report on Monday, August 11th. Desjardins upped their target price on Saputo from C$31.00 to C$36.00 and gave the stock a "buy" rating in a report on Monday, August 11th. Finally, Scotiabank upped their target price on Saputo from C$29.00 to C$36.00 and gave the stock an "outperform" rating in a report on Monday, August 11th. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Saputo presently has an average rating of "Moderate Buy" and an average price target of C$34.63.

Saputo Trading Down 0.8%

The stock has a market capitalization of C$14.01 billion, a P/E ratio of -100.00, a price-to-earnings-growth ratio of 0.56 and a beta of 0.07. The company has a current ratio of 1.53, a quick ratio of 0.67 and a debt-to-equity ratio of 51.68. The company has a 50-day moving average price of C$31.16 and a 200 day moving average price of C$27.79.

Saputo Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 12th. Stockholders of record on Friday, September 12th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from Saputo's previous quarterly dividend of $0.19. Saputo's dividend payout ratio is presently -223.53%.

Insider Activity at Saputo

In related news, insider Leanne Cutts purchased 4,000 shares of Saputo stock in a transaction dated Friday, August 15th. The stock was purchased at an average cost of C$32.93 per share, with a total value of C$131,720.00. Following the transaction, the insider owned 23,500 shares in the company, valued at approximately C$773,855. The trade was a 20.51% increase in their position. 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.