Dollarama (OTCMKTS:DLMAF) Shares Gap Up – Time to Buy?

Shares of Dollarama Inc. (OTCMKTS:DLMAF) gapped up prior to trading 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 changing hands.

Wall Street Analyst Weigh In

DLMAF has been the topic of several analyst reports. National Bank Financial upgraded Dollarama to a “strong-buy” rating in a research note on Wednesday, March 25th. Canadian Imperial Bank of Commerce reiterated an “outperform” rating on shares of Dollarama in a research report on Friday, June 12th. BMO Capital Markets reiterated an “outperform” rating on shares of Dollarama in a research note on Friday, June 12th. Wells Fargo & Company upgraded shares of Dollarama to a “hold” rating in a research note on Tuesday, March 24th. Finally, Scotiabank reaffirmed an “outperform” rating on shares of Dollarama in a report on Friday, June 12th. Four analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Buy”.

Dollarama Price Performance

The stock has a fifty day moving average of $130.39 and a two-hundred day moving average of $134.80. 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 stock has a market capitalization of $36.48 billion and a price-to-earnings ratio of 51.06.

Dollarama (OTCMKTS:DLMAF) last announced its earnings results on Thursday, June 11th. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.72 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.34 billion. Dollarama had a return on equity of 94.77% and a net margin of 17.65%. As a group, equities research analysts forecast that Dollarama Inc. will post 3.63 earnings per share for the current 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.