Zedcor (CVE:ZDC) Stock Price Down 13.8% - Should You Sell?

Key Points

• Shares fell 13.8% intraday to as low as C$4.53 and last traded at C$4.92 (prior close C$5.71) on ~1.61M shares, a 263% jump in volume versus the average session.
• Analysts collectively rate Zedcor a Buy (two Strong Buy, four Buy) with a consensus target of C$7.54 after several firms raised price targets into the C$7–8.70 range.
• Significant insider selling occurred—about 4.5M shares (~C$28.8M) sold in the past 90 days (insiders still own ~30.15%)—and the company shows high valuation and leverage (PE 230, current ratio 1.14, quick ratio 0.87, debt-to-equity 78.93).

Zedcor Inc. (CVE:ZDC - Get Free Report)'s stock price fell 13.8% during mid-day trading on Wednesday . The company traded as low as C$4.53 and last traded at C$4.92. 1,611,388 shares traded hands during mid-day trading, an increase of 263% from the average session volume of 443,861 shares. The stock had previously closed at C$5.71.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ZDC. Ventum Financial set a C$8.70 target price on Zedcor and gave the company a "buy" rating in a research report on Friday, December 12th. National Bankshares upped their price target on shares of Zedcor from C$5.50 to C$7.50 and gave the company an "outperform" rating in a research note on Thursday, October 9th. Canaccord Genuity Group increased their price objective on shares of Zedcor from C$5.25 to C$7.00 in a research report on Friday, October 17th. Finally, Desjardins set a C$7.50 target price on shares of Zedcor and gave the company a "buy" rating in a research report on Thursday, October 23rd. Two research analysts have rated the stock with a Strong Buy rating and four have given a Buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of C$7.54.

Zedcor Price Performance

The company has a quick ratio of 0.87, a current ratio of 1.14 and a debt-to-equity ratio of 78.93. The company has a market capitalization of C$485.59 million, a PE ratio of 230.00 and a beta of 1.21. The firm's 50 day simple moving average is C$6.09 and its 200 day simple moving average is C$5.12.

Insider Transactions at Zedcor

In other Zedcor news, Director Dean Sylvan Swanberg sold 1,000,000 shares of the firm's stock in a transaction dated Monday, October 27th. The shares were sold at an average price of C$6.50, for a total value of C$6,500,000.00. Following the completion of the sale, the director owned 15,400,000 shares of the company's stock, valued at C$100,100,000. This trade represents a 6.10% decrease in their ownership of the stock. Also, Director Dean Myles Shillington sold 2,000,000 shares of the business's stock in a transaction that occurred on Monday, October 27th. The shares were sold at an average price of C$6.45, for a total value of C$12,900,000.00. Following the transaction, the director owned 744,905 shares of the company's stock, valued at C$4,804,637.25. This trade represents a 72.86% decrease in their position. Over the last ninety days, insiders have sold 4,501,800 shares of company stock valued at $28,785,530. 30.15% of the stock is owned by corporate insiders.

Zedcor Company Profile

Zedcor Inc provides technology-based security and surveillance services in Canada. It engages in the provision of rental, service, and remote monitoring of its proprietary MobileyeZ security towers; surveillance and monitoring of fixed site locations; and security personnel. The company also engages in mobile and fixed surveillance, security guards, access control, and sensor related technology services. It serves customers in the construction, mining, oil and gas, pipeline and facilities, office, commercial, retail, industrial manufacturing, warehouse, and automotive sectors.

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