Loblaw Companies (TSE:L) Reaches New 12-Month High – Here’s Why

Shares of Loblaw Companies Limited (TSE:L) reached a new 52-week high during mid-day trading on Wednesday. The stock traded as high as C$71.07 and last traded at C$70.80, with a volume of 331,325 shares trading hands. The stock had previously closed at C$69.32.

Analysts Set New Price Targets

Several brokerages recently weighed in on L. Scotia boosted their price objective on shares of Loblaw Companies from C$64.00 to C$67.00 and gave the stock a “sector perform” rating in a research note on Friday, July 31st. TD Securities raised Loblaw Companies to a “strong-buy” rating in a research report on Wednesday, July 29th. Desjardins lifted their target price on Loblaw Companies from C$70.00 to C$72.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Canadian Imperial Bank of Commerce set a C$81.00 price target on Loblaw Companies and gave the company an “outperformer” rating in a research report on Thursday, October 22nd. Finally, BMO Capital Markets increased their price target on Loblaw Companies from C$70.00 to C$73.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Loblaw Companies has an average rating of “Moderate Buy” and a consensus target price of C$73.00.

Loblaw Companies Stock Performance

The company has a debt-to-equity ratio of 151.15, a quick ratio of 0.68 and a current ratio of 1.06. The stock’s 50 day moving average price is C$64.15 and its 200 day moving average price is C$63.64. The company has a market capitalization of C$81.08 billion, a P/E ratio of 29.73, a price-to-earnings-growth ratio of 3.23 and a beta of 0.02.

Loblaw Companies Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, October 1st were issued a $0.1552 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $0.62 annualized dividend and a yield of 0.9%. Loblaw Companies’s payout ratio is presently 24.51%.

Insider Buying and Selling at Loblaw Companies

In other news, insider Per Bank sold 39,762 shares of Loblaw Companies stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of C$62.01, for a total value of C$2,465,641.62. Following the completion of the transaction, the insider directly owned 203,623 shares of the company’s stock, valued at approximately C$12,626,662.23. This trade represents a 16.34% decrease in their position. Also, insider Mark William Henry Wilson sold 24,496 shares of Loblaw Companies stock in a transaction dated Friday, September 4th. The stock was sold at an average price of C$62.68, for a total value of C$1,535,409.28. Over the last quarter, insiders have sold 324,121 shares of company stock valued at $20,118,530. 53.77% of the stock is currently owned by insiders.

About Loblaw Companies

Loblaw is Canada’s food and pharmacy leader, and the nation’s largest retailer. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. With more than 2,800 corporate franchised and Associate-owned locations, Loblaw, its franchisees and Associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada’s largest private sector employers. Loblaw’s purpose – Live Life Well® – puts first the needs and well-being of Canadians who make one billion transactions annually in the company’s stores.