Loblaw Companies (TSE:L) Sets New 1-Year High – Here’s Why

Loblaw Companies Limited (TSE:L) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as C$64.50 and last traded at C$64.50, with a volume of 279902 shares changing hands. The stock had previously closed at C$62.92.

Analyst Upgrades and Downgrades

A number of analysts have commented on L shares. Desjardins upgraded shares of Loblaw Companies from a “hold” rating to a “buy” rating and boosted their price target for the stock from C$62.00 to C$67.00 in a research report on Thursday, December 4th. Royal Bank Of Canada boosted their target price on Loblaw Companies from C$68.00 to C$72.00 and gave the stock an “outperform” rating in a report on Friday, January 23rd. National Bankshares increased their price target on Loblaw Companies from C$62.00 to C$66.00 and gave the company an “outperform” rating in a research note on Wednesday, January 28th. TD Securities lifted their price target on Loblaw Companies from C$63.00 to C$65.00 in a research report on Thursday, November 13th. Finally, CIBC upped their price objective on Loblaw Companies from C$58.50 to C$67.00 in a report on Thursday, November 13th. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Loblaw Companies currently has a consensus rating of “Moderate Buy” and a consensus target price of C$89.75.

Loblaw Companies Stock Performance

The company has a current ratio of 1.29, a quick ratio of 0.68 and a debt-to-equity ratio of 166.11. The company has a market cap of C$78.87 billion, a price-to-earnings ratio of 32.61, a P/E/G ratio of 3.23 and a beta of 0.30. The stock has a 50 day moving average price of C$62.16 and a two-hundred day moving average price of C$83.26.

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. The ex-dividend date was Monday, December 15th. This represents a $0.56 dividend on an annualized basis and a yield of 0.8%. Loblaw Companies’s dividend payout ratio (DPR) is 26.31%.

Insider Activity at Loblaw Companies

In other news, insider Kieran Barry Columb sold 40,800 shares of the company’s stock in a transaction dated 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 directly owned 163,696 shares of the company’s stock, valued at C$9,739,912. This represents a 19.95% decrease in their position. Over the last three months, insiders sold 102,044 shares of company stock valued at $6,092,002. Corporate insiders own 53.77% of the company’s stock.

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.