Loblaw Companies (TSE:L) Reaches New 12-Month High – Should You Buy?

Loblaw Companies Limited (TSE:L) shares reached a new 52-week high on Thursday . The stock traded as high as C$68.20 and last traded at C$67.89, with a volume of 397659 shares. The stock had previously closed at C$66.28.

Analyst Ratings Changes

Several research firms recently issued reports on L. Royal Bank Of Canada boosted their target price on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the company an “outperform” rating in a report on Friday, January 23rd. Canadian Imperial Bank of Commerce lifted their price objective on Loblaw Companies from C$58.50 to C$67.00 in a research report on Thursday, November 13th. Desjardins upgraded Loblaw Companies from a “hold” rating to a “buy” rating and upped 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 raised their target price 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. Finally, BMO Capital Markets lifted their target price on Loblaw Companies from C$57.50 to C$63.00 in a report on Thursday, November 13th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, Loblaw Companies has a consensus rating of “Moderate Buy” and a consensus target price of C$89.75.

Loblaw Companies Price Performance

The business has a 50-day moving average of C$62.76 and a 200 day moving average of C$76.89. 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 firm has a market capitalization of C$80.15 billion, a P/E ratio of 33.14, a price-to-earnings-growth ratio of 3.23 and a beta of 0.30.

Loblaw Companies Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 30th were given a dividend of $0.1411 per share. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.56 annualized dividend and a dividend yield of 0.8%. Loblaw Companies’s payout ratio is presently 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.