Loblaw Companies (TSE:L) Hits New 1-Year High – Here’s Why

Shares of Loblaw Companies Limited (TSE:L) hit a new 52-week high during trading on Wednesday . The company traded as high as C$68.92 and last traded at C$68.49, with a volume of 1095595 shares trading hands. The stock had previously closed at C$67.86.

Wall Street Analyst Weigh In

L has been the topic of a number of research analyst reports. TD Securities upped their target price on shares of Loblaw Companies from C$63.00 to C$65.00 in a report on Thursday, November 13th. National Bank Financial upped their price objective on Loblaw Companies from C$62.00 to C$66.00 and gave the company an “outperform” rating in a report on Wednesday, January 28th. Desjardins raised Loblaw Companies from a “hold” rating to a “buy” rating and lifted their target price for the stock from C$62.00 to C$67.00 in a report on Thursday, December 4th. BMO Capital Markets raised their price target on shares of Loblaw Companies from C$57.50 to C$63.00 in a research report on Thursday, November 13th. Finally, Canadian Imperial Bank of Commerce lifted their price objective on shares of Loblaw Companies from C$58.50 to C$67.00 in a research note on Thursday, November 13th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of C$89.75.

Loblaw Companies Stock Down 1.9%

The company has a market cap of C$79.45 billion, a P/E ratio of 32.85, a price-to-earnings-growth ratio of 3.23 and a beta of 0.30. The company has a 50 day moving average of C$63.32 and a 200-day moving average of C$72.55. The company has a debt-to-equity ratio of 166.11, a current ratio of 1.29 and a quick ratio of 0.68.

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 paid a $0.1411 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Monday, December 15th. Loblaw Companies’s dividend payout ratio (DPR) is currently 26.31%.

Loblaw Companies Company Profile

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.