Loblaw Companies (TSE:L) Stock Price Down 2.5% – Here’s Why

Loblaw Companies Limited (TSE:L)’s stock price was down 2.5% during trading on Wednesday . The company traded as low as C$64.63 and last traded at C$65.81. Approximately 107,726 shares changed hands during trading, a decline of 91% from the average daily volume of 1,233,230 shares. The stock had previously closed at C$67.52.

Loblaw Companies News Roundup

Here are the key news stories impacting Loblaw Companies this week:

• Positive Sentiment: Fourth-quarter profit and revenue rose as value-seeking shoppers boosted traffic; management reported C$0.67 EPS and C$15.7B in revenue for the quarter, supporting near-term fundamentals. Loblaw 4Q Profit, Revenue Rise as Value-Seeking Shoppers Boost Traffic
• Positive Sentiment: Analysts raised targets and ratings (TD upgraded/raised target to C$75; BMO lifted its target), which typically supports buy-side interest and raised expectations for price appreciation. Analyst upgrades / price target changes
• Positive Sentiment: Loblaw plans to open ~70 new stores in 2026 and expand pharmacy and hard-discount concepts — a growth push aimed at capturing value-oriented shoppers and market share. That expansion underpins revenue growth prospects. Loblaws Plans 70 New Stores in 2026
• Positive Sentiment: Retail revenue exceeded US$16B in 2025 (Retail-Insider), reinforcing the company’s scale and recurring cash flow from grocery and pharmacy operations. Loblaw retail revenue surpasses $16 billion in 2025
• Neutral Sentiment: Loblaw announced partnerships on sustainability (Ducks Unlimited Canada) that support ESG credentials but are unlikely to move near-term earnings. Ducks Unlimited Canada and Loblaw partner
• Neutral Sentiment: Company reiterated large 2026 capital plans (variously reported as C$1.75B–C$2.4B) to fund new stores and renovations; this supports growth but timing of returns is uncertain. Loblaw to invest $1.75 billion in 2026
• Negative Sentiment: Some customers criticized proposed redesigns of Loblaw banners (No Frills, Shoppers Drug Mart), creating short?term reputational noise that could complicate local rollouts. Canadians roasting proposed glow-ups at Loblaw-owned stores
• Negative Sentiment: Heavy planned capex and the company’s elevated leverage metrics raise questions about near-term cashflow impact and margin pressure, which could temper investor appetite despite positive headlines. Loblaw commits $2.4B to retail, distribution network

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on L shares. Desjardins upgraded Loblaw Companies from a “hold” rating to a “buy” rating and lifted their target price for the company from C$62.00 to C$67.00 in a research report on Thursday, December 4th. National Bank Financial lifted their price objective on Loblaw Companies from C$62.00 to C$66.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 28th. Royal Bank Of Canada raised their price target on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the stock an “outperform” rating in a report on Friday, January 23rd. TD Securities upped their price objective on shares of Loblaw Companies from C$65.00 to C$75.00 and gave the company a “buy” rating in a research note on Monday. Finally, Canadian Imperial Bank of Commerce upped their price target on shares of Loblaw Companies from C$58.50 to C$67.00 in a research report on Thursday, November 13th. Six investment analysts have rated the stock with a Buy rating and one has assigned 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$91.63.

Loblaw Companies Price Performance

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 firm has a market cap of C$76.01 billion, a PE ratio of 31.43, a price-to-earnings-growth ratio of 3.23 and a beta of 0.30. The stock has a 50 day moving average price of C$63.71 and a two-hundred day moving average price of C$67.03.

Loblaw Companies (TSE:L) last released its earnings results on Wednesday, February 25th. The company reported C$0.67 earnings per share for the quarter. Loblaw Companies had a net margin of 3.71% and a return on equity of 19.90%. The company had revenue of C$15.70 billion for the quarter. As a group, equities analysts expect that Loblaw Companies Limited will post 9.1225541 earnings per share for the current year.

Loblaw Companies Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 30th were issued a dividend of $0.1411 per share. 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 payout ratio 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.