Loblaw Companies (TSE:L) Stock Crosses Above 200 Day Moving Average – Should You Sell?

Loblaw Companies Limited (TSE:L)’s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$63.03 and traded as high as C$65.25. Loblaw Companies shares last traded at C$64.77, with a volume of 1,433,038 shares.

Analysts Set New Price Targets

A number of research firms recently issued reports on L. Canadian Imperial Bank of Commerce dropped their price objective on shares of Loblaw Companies from C$75.00 to C$69.00 in a report on Thursday, May 7th. Scotiabank cut shares of Loblaw Companies from an “outperform” rating to a “hold” rating and set a C$70.00 target price for the company. in a report on Thursday, April 9th. Desjardins increased their price target on shares of Loblaw Companies from C$67.00 to C$70.00 and gave the stock a “buy” rating in a research report on Thursday, February 26th. Finally, Scotia dropped their price target on shares of Loblaw Companies from C$70.00 to C$64.00 and set a “sector perform” rating on the stock in a research note on Thursday, May 7th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of C$69.25.

Loblaw Companies Stock Performance

The business has a 50-day simple moving average of C$62.42 and a 200 day simple moving average of C$63.03. The company has a debt-to-equity ratio of 153.41, a current ratio of 1.09 and a quick ratio of 0.68. The firm has a market cap of C$75.39 billion, a PE ratio of 28.16, a PEG ratio of 3.23 and a beta of 0.15.

Loblaw Companies (TSE:L) last posted its quarterly earnings data on Wednesday, May 6th. The company reported C$0.52 earnings per share for the quarter. The firm had revenue of C$14.48 billion for the quarter. Loblaw Companies had a return on equity of 24.88% and a net margin of 4.29%. Equities research analysts forecast that Loblaw Companies Limited will post 9.1225541 EPS for the current year.

Loblaw Companies Increases Dividend

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

Insider Activity at Loblaw Companies

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

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.