Loblaw Companies Limited (TSE:L) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Loblaw Companies Limited (TSE:L) have earned a consensus recommendation of “Moderate Buy” from the seven research firms that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is C$69.25.

L has been the subject of several analyst reports. Desjardins increased their price target on shares of Loblaw Companies from C$67.00 to C$70.00 and gave the company a “buy” rating in a research report on Thursday, February 26th. Scotiabank lowered shares of Loblaw Companies from an “outperform” rating to a “hold” rating and set a C$70.00 price target for the company. in a research report on Thursday, April 9th. Scotia decreased their price target on shares of Loblaw Companies from C$70.00 to C$64.00 and set a “sector perform” rating for the company in a research report on Thursday, May 7th. Canadian Imperial Bank of Commerce decreased their price target on shares of Loblaw Companies from C$75.00 to C$69.00 in a research report on Thursday, May 7th. Finally, BMO Capital Markets increased their price target on shares of Loblaw Companies from C$63.00 to C$68.00 and gave the company a “market perform” rating in a research report on Monday, February 23rd.

Loblaw Companies Stock Down 0.6%

Shares of Loblaw Companies stock opened at C$64.59 on Tuesday. The stock has a market cap of C$75.18 billion, a price-to-earnings ratio of 28.08, a PEG ratio of 3.23 and a beta of 0.15. The firm’s 50-day moving average is C$62.41 and its two-hundred day moving average is C$62.93. Loblaw Companies has a 1 year low of C$52.92 and a 1 year high of C$69.59. The company has a debt-to-equity ratio of 153.41, a current ratio of 1.09 and a quick ratio of 0.68.

Loblaw Companies (TSE:L) last released its quarterly earnings results on Wednesday, May 6th. The company reported C$0.52 EPS for the quarter. The business had revenue of C$14.48 billion during the quarter. Loblaw Companies had a net margin of 4.29% and a return on equity of 24.88%. As a group, research analysts expect that Loblaw Companies will post 9.1225541 earnings per share for the current fiscal year.

Loblaw Companies Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Wednesday, July 1st will be given a dividend of $0.1552 per share. The ex-dividend date of this dividend is Monday, June 15th. This is a positive change from Loblaw Companies’s previous quarterly dividend of $0.14. This represents a $0.62 annualized dividend and a dividend yield of 1.0%. Loblaw Companies’s payout ratio is currently 24.53%.

Insider Activity

In other Loblaw Companies news, Director Nicholas Henn sold 10,000 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of C$67.00, for a total transaction of C$670,000.00. Also, insider Melanie Singh sold 4,820 shares of the stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of C$66.72, for a total transaction of C$321,590.40. Corporate insiders own 53.77% of the company’s stock.

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.