Superior Plus Shares Plunge 21.1% Following Analyst Downgrade
Shares of Superior Plus Corp. (TSE:SPB) experienced a significant decline of 21.1% on Friday, following a downgrade by CIBC. The investment firm reduced its price target for the stock from C$9.00 to C$8.50. During trading, the stock hit a low of C$6.06 before closing at C$6.29. Trading volume surged to approximately 5,946,604 shares, marking an increase of 655% from the average daily volume of 787,353 shares.
The previous closing price was C$7.97, indicating a notable shift in investor sentiment. Other research firms have also reassessed their positions on the stock. Desjardins lowered its price objective from C$10.50 to C$9.75 but maintained a “buy” rating. Similarly, Raymond James Financial adjusted their target from C$10.50 to C$10.00 while assigning an “outperform” rating.
On October 9, TD Securities raised its target price from C$8.00 to C$9.00 and issued a “hold” rating. In a more bullish stance, BMO Capital Markets increased its target from C$8.00 to C$10.00 on October 10. Overall, five research analysts have assigned a Buy rating, while two have rated it as Hold. According to MarketBeat, Superior Plus currently holds an average rating of “Moderate Buy” with an average target price of C$9.41.
Recent Earnings and Dividend Announcement
Superior Plus released its quarterly earnings on November 13, 2023, reporting an earnings per share (EPS) of C($0.47). The company posted a return on equity of 4.21% and a net margin of 1.80%. For the quarter, revenue totaled C$470.64 million, reflecting the company’s ongoing operations in a competitive market.
On October 15, the firm also announced a quarterly dividend of C$0.045 per share, which was paid out to investors of record from the previous month. This translates to an annualized dividend of C$0.18 and a dividend yield of 2.9%. The ex-dividend date was set for September 29. Notably, the dividend payout ratio stands at 109.01%, indicating a commitment to returning value to shareholders even in a challenging environment.
About Superior Plus
Founded in Canada, Superior Plus is a leading distributor of propane, compressed natural gas, renewable energy, and related products across North America. The company services approximately 770,000 customer locations throughout the United States and Canada. Through its core operations, including propane distribution and the delivery of clean-burning fuels such as CNG, RNG, and hydrogen, Superior Plus meets the needs of residential, commercial, utility, agricultural, and industrial customers not connected to a pipeline.
As the market continues to evolve, Superior Plus remains focused on providing reliable energy solutions while navigating the challenges posed by industry fluctuations and changing consumer demands.
