Dollarama (TSE:DOL) Hits New 12-Month High – Should You Buy?

Shares of Dollarama Inc. (TSE:DOL) reached a new 52-week high during mid-day trading on Monday . The company traded as high as C$152.74 and last traded at C$152.63, with a volume of 33836 shares. The stock had previously closed at C$151.00.

Analyst Ratings Changes

A number of research firms have weighed in on DOL. Desjardins upped their target price on Dollarama from C$143.00 to C$147.00 and gave the stock a “buy” rating in a report on Tuesday, October 15th. Royal Bank of Canada increased their price objective on Dollarama from C$144.00 to C$147.00 in a report on Thursday, September 12th. TD Securities upgraded shares of Dollarama from a “hold” rating to a “buy” rating and boosted their target price for the company from C$150.00 to C$154.00 in a report on Thursday, September 12th. BMO Capital Markets increased their price target on shares of Dollarama from C$138.00 to C$147.00 in a research note on Thursday, September 12th. Finally, Wells Fargo & Company lowered shares of Dollarama from an “overweight” rating to an “equal weight” rating and dropped their price objective for the stock from C$136.00 to C$130.00 in a research note on Thursday, September 12th. Four equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, Dollarama has a consensus rating of “Moderate Buy” and an average target price of C$139.55.

Dollarama Trading Down 0.3 %

The stock has a market cap of C$41.86 billion, a PE ratio of 38.48, a price-to-earnings-growth ratio of 1.93 and a beta of 0.56. The company has a debt-to-equity ratio of 391.24, a quick ratio of 0.08 and a current ratio of 1.99. The company has a 50 day moving average of C$139.95 and a two-hundred day moving average of C$131.10.

Dollarama (TSE:DOL) last released its earnings results on Wednesday, September 11th. The company reported C$1.02 EPS for the quarter, topping analysts’ consensus estimates of C$0.96 by C$0.06. Dollarama had a net margin of 17.85% and a return on equity of 156.46%. The business had revenue of C$1.56 billion during the quarter, compared to analysts’ expectations of C$1.57 billion. Sell-side analysts anticipate that Dollarama Inc. will post 5.3295203 earnings per share for the current fiscal year.

Dollarama Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, November 1st. Shareholders of record on Friday, November 1st were issued a $0.092 dividend. The ex-dividend date of this dividend was Friday, October 4th. This represents a $0.37 annualized dividend and a yield of 0.25%. Dollarama’s payout ratio is 9.59%.

Insider Buying and Selling

In related news, Director John Huw Thomas sold 2,000 shares of the stock in a transaction dated Wednesday, October 2nd. The stock was sold at an average price of C$137.73, for a total transaction of C$275,450.00. In other news, Director John Huw Thomas sold 2,000 shares of the stock in a transaction dated Wednesday, October 2nd. The stock was sold at an average price of C$137.73, for a total value of C$275,450.00. Also, Director Nicolas Hien sold 5,167 shares of the stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of C$135.18, for a total transaction of C$698,490.04. Over the last three months, insiders sold 7,697 shares of company stock worth $1,049,979. Company insiders own 2.23% of the company’s stock.

About Dollarama

Dollarama Inc operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. It also sells its products through online store. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc in September 2009.