Dollarama (OTCMKTS:DLMAF) Stock Price Crosses Below Two Hundred Day Moving Average – Should You Sell?

Dollarama Inc. (OTCMKTS:DLMAF) shares passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $130.31 and traded as low as $128.37. Dollarama shares last traded at $129.05, with a volume of 139,095 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on DLMAF. Canadian Imperial Bank of Commerce reiterated an “outperform” rating on shares of Dollarama in a research report on Friday, June 12th. Ventum Financial raised Dollarama to a “strong-buy” rating in a research note on Thursday, August 20th. BMO Capital Markets reiterated an “outperform” rating on shares of Dollarama in a research report on Friday, June 12th. Royal Bank Of Canada reissued an “outperform” rating on shares of Dollarama in a research note on Thursday, September 17th. Finally, Scotiabank reissued an “outperform” rating on shares of Dollarama in a report on Friday, June 12th. Five equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy”.

Dollarama Stock Up 1.3%

The company has a debt-to-equity ratio of 3.96, a current ratio of 1.57 and a quick ratio of 0.70. The firm has a market capitalization of $34.70 billion and a P/E ratio of 35.85. The firm’s fifty day moving average price is $130.77 and its 200-day moving average price is $130.31.

Dollarama (OTCMKTS:DLMAF) last announced its earnings results on Wednesday, September 16th. The company reported $0.92 EPS for the quarter, topping the consensus estimate of $0.91 by $0.01. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.44 billion. Dollarama had a return on equity of 98.00% and a net margin of 17.32%. As a group, equities research analysts forecast that Dollarama Inc. will post 3.7 earnings per share for the current year.

Dollarama Company Profile

Dollarama Inc is a Canadian value retailer that operates a chain of stores offering a broad assortment of everyday consumer products at fixed, low price points. Its merchandise includes general merchandise, household supplies, seasonal items, toys, stationery, party goods, hardware, kitchen products, and select food and convenience products.

Founded in 1992, Dollarama has expanded into one of Canada’s largest discount-store networks, serving communities across the country through stores in all provinces and territories.