iA Financial Downgraded by National Bankshares

On October 29, 2024, National Bankshares announced a downgrade of iA Financial (TSE:IAG) from an outperform rating to a sector perform rating. This change was detailed in a report released on Friday morning, with the firm setting a new price target of C$118.00 for the stock, an increase from its previous target of C$102.00.

Several other financial institutions have also revised their ratings and price objectives for iA Financial. CIBC raised its price target for the company from C$100.00 to C$106.00 on August 8. Meanwhile, TD Securities increased its target from C$110.00 to C$114.00 while maintaining a ‘buy’ recommendation on August 7. BMO Capital Markets adjusted its price objective from C$102.00 to C$111.00 on the same day. Royal Bank of Canada similarly raised its target from C$102.00 to C$105.00, giving the stock a ‘moderate buy’ rating. Additionally, Scotiabank increased its price objective from C$100.00 to C$110.00 as of August 8. Currently, four analysts have rated the stock as a ‘hold’, while three have assigned a ‘buy’ rating. According to MarketBeat, the average target price for iA Financial currently stands at C$107.25.

iA Financial's Current Market Position

As of Friday, the stock opened at C$114.53. The company has a 50-day moving average of C$108.92 and a 200-day moving average of C$95.10. Over the past year, iA Financial has experienced a low of C$78.31 and a high of C$119.25. With a market capitalization of C$10.90 billion, the company has a price-to-earnings (P/E) ratio of 15.33 and a price-to-earnings-growth (PEG) ratio of 1.26. Its beta value is 1.13, indicating a relatively volatile performance compared to the market. The firm’s current ratio stands at 2.22, while its quick ratio is 0.17, and the debt-to-equity ratio is 46.39.

Recent Earnings and Dividends

In its latest quarterly earnings report on August 6, iA Financial reported earnings per share (EPS) of C$2.75, surpassing analyst expectations of C$2.58 by C$0.17. The company boasted a return on equity of 10.51% and a net profit margin of 9.02%, with revenue for the quarter amounting to C$1.64 billion. Analysts predict that iA Financial will deliver an average EPS of about 11.62 for the current fiscal year.

Moreover, iA Financial recently declared a quarterly dividend of C$0.82 per share, which was paid out on September 16. The dividend applies to shareholders who were recorded as of August 23, resulting in an annualized dividend payout of C$3.28, equating to a dividend yield of 2.86%. The current dividend payout ratio for the company is 43.91%.

About iA Financial

iA Financial Corporation Inc provides a variety of insurance and wealth management services across Canada and the United States. Its operations are divided into segments including Insurance, Canada; Wealth Management; Investment; and US Operations. The company offers various insurance products, including health, auto, home, and creditor insurance, as well as life insurance products, extended warranties, and specialized offerings for particular markets.

iA, Financial, Downgrade