Loblaw Companies (TSE:L) Hits New 12-Month High After Analyst Upgrade

Loblaw Companies Limited (TSE:L)’s share price reached a new 52-week high during mid-day trading on Monday after Royal Bank Of Canada raised their price target on the stock from C$68.00 to C$72.00. Royal Bank Of Canada currently has an outperform rating on the stock. Loblaw Companies traded as high as C$63.44 and last traded at C$63.22, with a volume of 79077 shares changing hands. The stock had previously closed at C$62.96.

Other equities research analysts have also issued research reports about the stock. CIBC increased their price objective on shares of Loblaw Companies from C$58.50 to C$67.00 in a research report on Thursday, November 13th. BMO Capital Markets lifted their target price on shares of Loblaw Companies from C$57.50 to C$63.00 in a report on Thursday, November 13th. TD Securities upped their price target on shares of Loblaw Companies from C$63.00 to C$65.00 in a research report on Thursday, November 13th. National Bankshares raised their price objective on Loblaw Companies from C$60.00 to C$61.00 and gave the company an “outperform” rating in a research report on Wednesday, October 22nd. Finally, Desjardins upgraded Loblaw Companies from a “hold” rating to a “buy” rating and boosted their price objective for the stock from C$62.00 to C$67.00 in a research note on Thursday, December 4th. Six 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 a consensus rating of “Moderate Buy” and a consensus price target of C$89.13.

Insider Transactions at Loblaw Companies

In other news, insider Kieran Barry Columb sold 40,800 shares of the stock in a transaction on Friday, November 14th. The stock was sold at an average price of C$59.50, for a total value of C$2,427,600.00. Following the completion of the sale, the insider owned 163,696 shares in the company, valued at C$9,739,912. This represents a 19.95% decrease in their ownership of the stock. Over the last 90 days, insiders have sold 102,044 shares of company stock worth $6,092,002. 53.77% of the stock is owned by insiders.

Loblaw Companies Price Performance

The stock has a 50 day moving average price of C$61.94 and a two-hundred day moving average price of C$90.20. 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 capitalization of C$73.75 billion, a PE ratio of 30.50, a P/E/G ratio of 3.23 and a beta of 0.26.

Loblaw Companies Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 30th were issued a dividend of $0.1411 per share. This represents a $0.56 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, December 15th. Loblaw Companies’s dividend payout ratio (DPR) is 26.31%.

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.