Transcontinental (TSE:TCL.A) Stock Price Passes Below 200-Day Moving Average - Time to Sell?

Key Points

• Transcontinental’s stock fell below its 200-day moving average during trading, with shares last around C$5.34 after touching C$5.30. This marks a sharp drop versus the 200-day average of C$12.26.
• Analysts have cut price targets on the company, though most still maintain positive ratings. Recent target reductions ranged from C$6.00 to C$8.00, and the consensus view remains “Moderate Buy” with a consensus target of C$14.38.
• The company’s recent financial metrics were mixed, with Q4 earnings of C$0.19 per share on revenue of C$269.2 million. Transcontinental also carries notable leverage, with a debt-to-equity ratio of 54.12.

Transcontinental Inc. (TSE:TCL.A - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$12.26 and traded as low as C$5.30. Transcontinental shares last traded at C$5.34, with a volume of 314,973 shares traded.

Analysts Set New Price Targets

TCL.A has been the topic of a number of research analyst reports. Canadian Imperial Bank of Commerce lowered their price target on Transcontinental from C$8.00 to C$7.00 and set an "outperformer" rating on the stock in a report on Friday, June 5th. ATB Cormark Capital Markets cut their price objective on shares of Transcontinental from C$7.00 to C$6.00 and set an "outperform" rating for the company in a report on Friday, June 5th. Royal Bank Of Canada reduced their price objective on shares of 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. Finally, BMO Capital Markets lowered their target price on shares of Transcontinental from C$6.25 to C$6.00 and set a "market perform" rating on the stock in a report on Friday, June 5th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of C$14.38.

Transcontinental Stock Down 2.0%

The company has a quick ratio of 1.09, a current ratio of 1.49 and a debt-to-equity ratio of 54.12. The company has a 50 day simple moving average of C$5.32 and a two-hundred day simple moving average of C$12.26. The company has a market capitalization of C$446.53 million, a P/E ratio of 1.33, a PEG ratio of 6.05 and a beta of 0.44.

Transcontinental (TSE:TCL.A - Get Free Report) last released its quarterly earnings results on Thursday, June 4th. The company reported C$0.19 earnings per share for the quarter. The company had revenue of C$269.20 million for the quarter. Transcontinental had a return on equity of 6.16% and a net margin of 4.05%. As a group, equities analysts predict that Transcontinental Inc. will post 2.439834 EPS for the current year.

Transcontinental Company Profile

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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