IGM Financial Shares Rise Above 200-Day Moving Average: Should Investors Consider Selling?

On Tuesday, IGM Financial Inc. (TSE:IGM – Get Free Report) saw its stock cross over the 200-day moving average, an important technical indicator used by investors. The stock's 200-day moving average is C$41.15, and during trading, it reached a high of C$46.21. As of the last transaction, IGM Financial shares were valued at C$45.91 with a trading volume of 194,031 shares.

Recent Analyst Upgrades

In recent weeks, various brokerages have updated their outlooks on IGM Financial. Scotiabank has revised its price target upward from C$53.00 to C$56.00 in a report published on November 8th. TD Securities also raised its price target from C$46.00 to C$50.00 on November 11th. Additionally, Jefferies Financial Group adjusted its price objective from C$39.00 to C$45.00 and issued a “hold” rating on November 1st. Meanwhile, National Bankshares increased their target price from C$47.00 to C$50.00 with an “outperform” rating on October 30th. Lastly, CIBC also set a new target price of C$50.00 for IGM Financial on November 8th. Currently, MarketBeat.com reports that IGM Financial has a consensus rating of “Moderate Buy” along with an average price target of C$49.29.

Current Stock Performance

Despite the encouraging news, the stock is currently trading down by 0.7%. It carries a market capitalization of C$10.86 billion, a price-to-earnings ratio of 12.93, and a PEG ratio of 4.09. The stock has a beta of 1.53, indicating higher volatility than the overall market. IGM Financial’s simple moving averages over the past 50 days and 200 days are C$45.39 and C$41.15, respectively. The company has a debt-to-equity ratio of 35.99, a current ratio of 2.12, and a quick ratio of 0.31.

Dividend Announcement

IGM Financial has also recently announced that it will pay a quarterly dividend on January 31st. Shareholders on record as of December 31st will receive a dividend of $0.563, translating into an annualized dividend of $2.25, which equates to a yield of 4.91%. The ex-dividend date is set for December 31st, and the company’s dividend payout ratio stands at 63.38%.

About IGM Financial

IGM Financial Inc. functions as a wealth and asset management firm operating in Canada. It focuses on two main segments: Wealth Management and Asset Management. The Wealth Management segment provides financial planning services and manages mutual funds and discretionary portfolios.

Conclusion

With several positive upgrades from analysts and a continued focus on dividend distribution, IGM Financial presents an intriguing opportunity in the market. However, the recent dip in stock price may have investors weighing their options on whether to hold or sell.

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