Dollarama (OTCMKTS:DLMAF) Shares Gap Up – Still a Buy?

Dollarama Inc. (OTCMKTS:DLMAF) gapped up before the market opened on Wednesday . The stock had previously closed at $128.49, but opened at $134.79. Dollarama shares last traded at $134.79, with a volume of 108 shares traded.

Analyst Upgrades and Downgrades

Several research firms have weighed in on DLMAF. Canadian Imperial Bank of Commerce restated an “outperform” rating on shares of Dollarama in a research report on Friday, June 12th. Canaccord Genuity Group raised shares of Dollarama to a “hold” rating in a research note on Tuesday, March 24th. National Bank Financial raised shares of Dollarama to a “strong-buy” rating in a report on Wednesday, March 25th. Scotiabank restated an “outperform” rating on shares of Dollarama in a research report on Friday, June 12th. Finally, TD Securities raised Dollarama to a “strong-buy” rating in a report on Wednesday, March 25th. Four analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy”.

Dollarama Price Performance

The stock has a market capitalization of $36.45 billion and a P/E ratio of 51.02. The company has a current ratio of 1.57, a quick ratio of 0.70 and a debt-to-equity ratio of 3.96. The company has a fifty day simple moving average of $130.65 and a two-hundred day simple moving average of $134.51.

Dollarama (OTCMKTS:DLMAF) last issued its earnings results on Thursday, June 11th. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.05. Dollarama had a net margin of 17.65% and a return on equity of 94.77%. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.34 billion. Sell-side analysts expect that Dollarama Inc. will post 3.63 EPS for the current fiscal year.

Dollarama Company Profile

Dollarama Inc operates as a leading Canadian dollar store chain, offering a variety of everyday consumer goods at fixed price points. The company’s retail format emphasizes value and convenience, providing a one-stop shopping experience for cost-conscious customers. Merchandise spans multiple categories, including household items, food and consumables, health and beauty products, stationery, seasonal and party supplies, and toys.

Founded in 1992 by Laurent “Larry” Rossy, Dollarama opened its first location in Montreal, Quebec.