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

Loblaw Companies Limited (TSE:L) shares passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$111.84 and traded as low as C$61.79. Loblaw Companies shares last traded at C$62.01, with a volume of 1,014,675 shares trading hands.

Analysts Set New Price Targets

Several research firms have recently weighed in on L. CIBC increased their price target on Loblaw Companies from C$58.50 to C$67.00 in a research note on Thursday, November 13th. National Bankshares upped their price objective on shares of Loblaw Companies from C$60.00 to C$61.00 and gave the company an “outperform” rating in a report on Wednesday, October 22nd. Desjardins upgraded shares of Loblaw Companies from a “hold” rating to a “buy” rating and increased their target price for the stock from C$62.00 to C$67.00 in a research report on Thursday, December 4th. BMO Capital Markets boosted their price target on shares of Loblaw Companies from C$57.50 to C$63.00 in a research report on Thursday, November 13th. Finally, TD Securities upped their price target on shares of Loblaw Companies from C$63.00 to C$65.00 in a research note on Thursday, November 13th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of C$113.50.

Loblaw Companies Stock Performance

The company has a market cap of C$73.24 billion, a P/E ratio of 30.29, a P/E/G ratio of 3.23 and a beta of 0.28. The company has a quick ratio of 0.68, a current ratio of 1.29 and a debt-to-equity ratio of 166.11. The business has a fifty day simple moving average of C$60.15 and a two-hundred day simple moving average of C$111.84.

Loblaw Companies Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 30th were issued a $0.1411 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. Loblaw Companies’s dividend payout ratio (DPR) is presently 26.31%.

Insider Transactions at Loblaw Companies

In other Loblaw Companies news, insider Kieran Barry Columb sold 40,800 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of C$59.50, for a total transaction of C$2,427,600.00. Following the completion of the sale, the insider directly owned 163,696 shares of the company’s stock, valued at approximately C$9,739,912. This represents a 19.95% decrease in their ownership of the stock. Insiders have sold 102,044 shares of company stock worth $6,092,002 in the last three months. 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. 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.