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

Loblaw Companies Limited (TSE:L) 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 changing hands.

Analyst Upgrades and Downgrades

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

Loblaw Companies Trading Down 0.2%

The stock has a market cap of C$76.92 billion, a PE ratio of 28.73, a PEG ratio of 3.23 and a beta of 0.15. The company’s fifty day moving average is C$62.50 and its 200-day moving average is C$63.06. 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 announced its quarterly earnings results on Wednesday, May 6th. The company reported C$0.52 earnings per share for the quarter. The company 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%. On average, analysts predict that Loblaw Companies Limited will post 9.1225541 earnings per share for the current fiscal year.

Loblaw Companies Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Wednesday, July 1st will be issued a dividend of $0.1552 per share. This represents a $0.62 annualized dividend and a yield of 0.9%. This is a positive change from Loblaw Companies’s previous quarterly dividend of $0.14. The ex-dividend date of this dividend is Monday, June 15th. Loblaw Companies’s dividend payout ratio is 24.53%.

Insider Activity at Loblaw Companies

In related news, insider Melanie Singh sold 4,820 shares of Loblaw Companies stock in a transaction that occurred 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. Also, Director Nicholas Henn sold 10,000 shares of the business’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. 53.77% of the stock is currently owned by company insiders.

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.