Loblaw Companies (TSE:L) Reaches New 12-Month High – Time to Buy?

Shares of Loblaw Companies Limited (TSE:L) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as C$68.92 and last traded at C$68.49, with a volume of 1095595 shares. The stock had previously closed at C$67.86.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on L shares. TD Securities increased their price objective on Loblaw Companies from C$63.00 to C$65.00 in a research report on Thursday, November 13th. BMO Capital Markets increased their price target on shares of Loblaw Companies from C$57.50 to C$63.00 in a research report on Thursday, November 13th. Canadian Imperial Bank of Commerce boosted their price objective on shares of Loblaw Companies from C$58.50 to C$67.00 in a report on Thursday, November 13th. Desjardins raised shares of Loblaw Companies from a “hold” rating to a “buy” rating and increased their target price for the company from C$62.00 to C$67.00 in a report on Thursday, December 4th. Finally, Royal Bank Of Canada lifted their target price on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the stock an “outperform” rating in a research report on Friday, January 23rd. Six analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of C$89.75.

Loblaw Companies Trading Up 0.9%

The firm’s 50 day moving average is C$63.02 and its 200 day moving average is C$72.61. 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 capitalization of C$80.90 billion, a PE ratio of 33.45, a P/E/G ratio of 3.23 and a beta of 0.30.

Loblaw Companies Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Tuesday, December 30th were issued a dividend of $0.1411 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, December 15th. Loblaw Companies’s dividend payout ratio is currently 26.31%.

About Loblaw Companies

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.