Every Sunday, we shine the spotlight on elements of financial and stock market news that may be useful to investors, but which might have gone under the radar.
Posted at 1:12 a.m.
Updated at 8:00 a.m.
A senior Gildan executive sold just over $1 million worth of shares in the Montreal clothing manufacturer this week.
CIO Jason DeHaan sold a batch of 15,000 shares on Tuesday, reducing his number of directly owned Gildan shares by 90%.
Michener Chandlee, director, for his part purchased Gildan shares for a little more than $135,000 on Monday. Michener Chandlee became a director after the board was reconstituted in the spring.
The stock is selling at a 52-week high.
iA Financial Group lost the support of RBC on Thursday. Analyst Darko Mihelic withdrew his purchase suggestion on the stock of the Quebec insurer also a specialist in wealth management after the presentation of a brilliant financial performance which led to a strong bullish reaction on the stock market. This expert believes that the potential return over 12 months is now limited. Five out of eight analysts now say to buy.
A Canadian National director purchased nearly $270,000 worth of shares in the Montreal rail carrier this week. Jo-ann dePass Olsovsky purchased a batch of 1786 shares on Wednesday. She has been a board member for three years.
The very modest dividend increase announced this week by Fiera Capital was decreed in order to maintain the stock’s inclusion in the S&P/TSX Canadian Dividend Aristocrats Index, according to observers. This index requires continued dividend increases over time, notes CIBC analyst Nik Priebe. His colleague Gary Ho at Desjardins notes that the iShares exchange-traded fund associated with the index owns more than C$30 million worth of Fiera shares and is one of the company’s largest shareholders.
While analysts pointed out Thursday that the worst of the fund outflows linked to the departure of star manager Nadim Rizk is behind Fiera, the company announced Friday the loss of a mandate of 5.5 billion in assets under management. Nadim Rizk left Fiera during the pandemic to start his own business.
BCE lost the support of Canaccord Genuity earlier this week. Analyst Aravinda Galappatthige on Monday withdrew his purchase suggestion on the stock of the Montreal technology services company. This expert believes that the proposed acquisition of Ziply Fiber is likely to place additional near-term pressure on the investment thesis on several levels, including lower cash flow generation over the next three years, a delayed debt relief and dilution resulting from the introduction of a dividend reinvestment scheme. “An encouraging element of the earlier thesis was the deleveraging that would have occurred following recent asset sales. » He also notes that the development of Ziply will require high investments over the next three years, which he believes raises questions surrounding the dividend beyond 2025.
Out of around fifteen analysts, only one remains offering to buy the stock. This analyst is David McFadgen, at Cormark. He suggests buying given the current valuation and the “high” dividend yield which now exceeds 10%.
Air Canada gained additional support on Bay Street earlier this week. Analyst Daryl Young of the Stifel firm now recommends buying the Montreal air carrier’s stock. He argues that the environment appears to be streamlining more quickly than expected and that the outlook for 2025 is increasingly clear. His decision comes after the presentation of the most recent quarterly results which he considers better than what he feared. There are only two analysts out of 17 who do not suggest buying.
Cogeco Communications gained the support of Canaccord Genuity earlier this week. Analyst Aravinda Galappatthige now suggests purchasing the shares of the Quebec telecommunications services company. He notes that process restructuring and modernization efforts, and wireless plans in Canada and the United States are improving the financial outlook. He also says he gives the spectrum blocks held a potential value of $1.5 billion to $2 billion and appreciates the dividend yield above 5%. Now five out of ten analysts say to buy.
The Quebec securities of Lassonde, Air Canada, Fiera Capital, Banque Nationale, Dollarama, AtkinsRéalis, iA Financial Group, WSP, Power Corporation and Gildan all reached a 52-week high this week on the Toronto Stock Exchange.
On the other hand, those of Lion, BCE and BRP reached their lowest level in the last 52 weeks this week.
