Saputo (TSE:SAP) Stock Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Saputo Inc.'s stock crossed above its 200-day moving average, trading at C$33.59, which is above the average of C$28.77.
• Multiple brokerages have raised their target price for Saputo shares, with an average target of C$34.63 and most ratings reflecting a "Moderate Buy."
• The company announced a quarterly dividend increase from $0.19 to $0.20 per share, with a current annualized dividend yield of 2.4%.

Saputo Inc. (TSE:SAP - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$28.77 and traded as high as C$33.81. Saputo shares last traded at C$33.59, with a volume of 357,292 shares changing hands.

Analysts Set New Price Targets

Several brokerages recently issued reports on SAP. TD Securities raised their target price on shares of Saputo from C$35.00 to C$38.00 and gave the stock a "buy" rating in a report on Monday, August 11th. Scotiabank raised their target price on shares of Saputo from C$29.00 to C$36.00 and gave the stock an "outperform" rating in a report on Monday, August 11th. BMO Capital Markets raised their target price on shares of Saputo from C$27.00 to C$34.00 in a report on Monday, August 11th. Royal Bank Of Canada raised their target price on shares of Saputo from C$35.00 to C$37.00 and gave the stock an "outperform" rating in a report on Friday, August 8th. Finally, Desjardins lifted their price target on shares of Saputo from C$31.00 to C$36.00 and gave the stock a "buy" rating in a research note on Monday, August 11th. Six analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of C$34.63.

Saputo Stock Down 0.3%

The company's 50 day moving average price is C$32.98 and its two-hundred day moving average price is C$28.77. The firm has a market cap of C$13.84 billion, a PE ratio of -98.79, a PEG 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.

Saputo Increases Dividend

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

Insider Buying and Selling at Saputo

In related news, insider Leanne Cutts purchased 4,000 shares of Saputo stock in a transaction on Friday, August 15th. The shares were bought at an average cost of C$32.93 per share, for a total transaction of C$131,720.00. Following the acquisition, 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. 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.

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