Loblaw Companies (TSE:L) Stock Passes Above Two Hundred Day Moving Average – Should You Sell?

Loblaw Companies Limited (TSE:L)’s stock price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$199.25 and traded as high as C$223.43. Loblaw Companies shares last traded at C$222.69, with a volume of 233,710 shares.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on L shares. Royal Bank Of Canada lifted their price target on Loblaw Companies from C$215.00 to C$234.00 in a report on Monday, April 14th. Scotiabank lifted their price objective on Loblaw Companies from C$215.00 to C$245.00 and gave the company an “outperform” rating in a report on Thursday, May 1st. Desjardins lifted their price objective on Loblaw Companies from C$185.00 to C$230.00 and gave the company a “hold” rating in a report on Thursday, May 1st. National Bankshares lifted their price objective on Loblaw Companies from C$207.00 to C$234.00 and gave the company an “outperform” rating in a report on Thursday, May 1st. Finally, BMO Capital Markets lifted their price objective on Loblaw Companies from C$200.00 to C$220.00 in a report on Thursday, May 1st. One analyst has rated the stock with a hold rating and six have issued a buy 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$236.88.

Loblaw Companies Price Performance

The company has a debt-to-equity ratio of 166.11, a quick ratio of 0.68 and a current ratio of 1.29. The company has a market cap of C$67.33 billion, a price-to-earnings ratio of 30.23, a PEG ratio of 3.23 and a beta of 0.17. The business has a fifty day moving average price of C$220.58 and a 200 day moving average price of C$199.25.

Loblaw Companies Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Tuesday, July 1st will be issued a dividend of $0.5643 per share. The ex-dividend date of this dividend is Friday, June 13th. This represents a $2.26 dividend on an annualized basis and a dividend yield of 1.01%. This is a boost from Loblaw Companies’s previous quarterly dividend of $0.51. Loblaw Companies’s payout ratio is 27.83%.

Insider Transactions at Loblaw Companies

In related news, Senior Officer Nicholas Henn sold 4,000 shares of the business’s stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of C$227.00, for a total transaction of C$908,000.00. Also, Senior Officer Jeffrey Francis Leger sold 3,400 shares of the business’s stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of C$230.50, for a total value of C$783,700.00. In the last quarter, insiders sold 27,328 shares of company stock valued at $6,132,567. Corporate insiders own 53.77% of the company’s stock.

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.