Transcontinental (TSE:TCL.A) Share Price Passes Below 200 Day Moving Average - Here's What Happened

Key Points

• Transcontinental’s stock fell below its 200-day moving average on Wednesday, trading as low as C$5.48 and last changing hands at C$5.57, far below the C$13.00 long-term average.
• Several analysts have cut price targets on the company recently, though the stock still carries a consensus Moderate Buy rating with an average target price of C$14.38.
• The company’s latest quarterly results showed C$0.19 EPS on revenue of C$269.2 million, while its shares remain inexpensive on a valuation basis with a P/E ratio of 1.39.

Transcontinental Inc. (TSE:TCL.A - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$13.00 and traded as low as C$5.48. Transcontinental shares last traded at C$5.57, with a volume of 221,380 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on TCL.A. TD Securities dropped their price target on shares of Transcontinental from C$28.00 to C$8.00 and set a "buy" rating for the company in a research note on Tuesday, March 24th. BMO Capital Markets cut their target price on Transcontinental from C$6.25 to C$6.00 and set a "market perform" rating for the company in a research note on Friday, June 5th. Royal Bank Of Canada reduced their target price on Transcontinental from C$9.00 to C$8.00 and set an "outperform" rating on the stock in a research report on Monday, June 8th. ATB Cormark Capital Markets reduced their target price on Transcontinental from C$7.00 to C$6.00 and set an "outperform" rating on the stock in a research report on Friday, June 5th. Finally, Canadian Imperial Bank of Commerce decreased their price target on Transcontinental from C$8.00 to C$7.00 and set an "outperformer" rating on the stock in a research note on Friday, June 5th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Transcontinental presently has a consensus rating of "Moderate Buy" and an average target price of C$14.38.

Transcontinental Stock Performance

The firm's fifty day moving average price is C$5.31 and its 200 day moving average price is C$13.00. The company has a current ratio of 1.49, a quick ratio of 1.09 and a debt-to-equity ratio of 54.12. The stock has a market capitalization of C$465.76 million, a price-to-earnings ratio of 1.39, a price-to-earnings-growth ratio of 6.05 and a beta of 0.44.

Transcontinental (TSE:TCL.A - Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The company reported C$0.19 earnings per share for the quarter. The firm had revenue of C$269.20 million during the quarter. Transcontinental had a net margin of 4.05% and a return on equity of 6.16%. Analysts forecast that Transcontinental Inc. will post 2.439834 EPS for the current fiscal year.

About Transcontinental

Transcontinental, or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions.

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