Loblaw Companies (TSE:L) Hits New 12-Month High Following Analyst Upgrade

Shares of Loblaw Companies Limited (TSE:L) reached a new 52-week high on Monday after Royal Bank Of Canada raised their price target on the stock from C$68.00 to C$72.00. Royal Bank Of Canada currently has an outperform rating on the stock. Loblaw Companies traded as high as C$63.44 and last traded at C$63.22, with a volume of 79077 shares changing hands. The stock had previously closed at C$62.96.

A number of other analysts also recently issued reports on the company. BMO Capital Markets raised their price target on Loblaw Companies from C$57.50 to C$63.00 in a research report on Thursday, November 13th. National Bankshares increased their target price on shares of Loblaw Companies from C$60.00 to C$61.00 and gave the company an “outperform” rating in a research note on Wednesday, October 22nd. TD Securities lifted their price target on shares of Loblaw Companies from C$63.00 to C$65.00 in a research note on Thursday, November 13th. Desjardins upgraded shares of Loblaw Companies from a “hold” rating to a “buy” rating and upped their price target for the company from C$62.00 to C$67.00 in a report on Thursday, December 4th. Finally, CIBC raised their price objective on shares of Loblaw Companies from C$58.50 to C$67.00 in a research note on Thursday, November 13th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of C$89.13.

Insider Buying and Selling at Loblaw Companies

In related news, insider Kieran Barry Columb sold 40,800 shares of the company’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of C$59.50, for a total value of C$2,427,600.00. Following the completion of the sale, the insider owned 163,696 shares of the company’s stock, valued at approximately C$9,739,912. This represents a 19.95% decrease in their ownership of the stock. Over the last 90 days, insiders have sold 102,044 shares of company stock worth $6,092,002. Insiders own 53.77% of the company’s stock.

Loblaw Companies Trading Down 1.3%

The company has a debt-to-equity ratio of 166.11, a current ratio of 1.29 and a quick ratio of 0.68. The company has a market cap of C$72.80 billion, a PE ratio of 30.10, a price-to-earnings-growth ratio of 3.23 and a beta of 0.26. The company’s 50 day simple moving average is C$61.96 and its two-hundred day simple moving average is C$89.08.

Loblaw Companies Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 30th were issued a $0.1411 dividend. This represents a $0.56 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, December 15th. Loblaw Companies’s dividend payout ratio (DPR) is 26.31%.

Loblaw Companies Company Profile

Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart. The firm carries a robust private-label assortment, with top sellers like President’s Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program.