Canadian stock alert

CANA

CLOSING UPDATE: IGM Financial hits 52-week high second time in three months 24 July 2017 18:21 EDT

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

IGM Financial, Canada's largest asset management company by market capitalisation, hit a 52-week high of CAD41.35 today for the second time in the past three months and last traded at CAD41.24. This brought its four-day rise to 61.0c or 1.5%. Trading volume was 55% of average at the end of the day. Compared with the S&P/TSX 60 Index which fell 3.2 points (or 0.4%) in the day, this represented a relative price increase of 1.0%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.3 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high twice.

+ The price increased 1.4% in the last week and lifted 3.2% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Dividend yield of 5.4% [3.9%]

+ Return on Equity 16.4% [8.0%]

+ Return on Assets 5% [3.3%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 11.3 times.

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 26.1% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 16.4% is better than sector average of 8.0%.

Note

The stock has outperformed 66% of the Canadian market over the past 6 months.

Overbought/Bearish:

The 0.3% discount to 12-month high of CAD41.35 against the 23.6% premium to 12-month low of CAD33.38 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 12.7 [8.2]

Price/Sales of 3.3 [2.8]

Price to Book of 12.1 [1.4]

TODAY'S ALERT

Afternoon Alert: IGM Financial hits 52-week high second time in three months

24 July 2017 14:52 EDT

IGM Financial Inc. (TSX:IGM) hit a 52-week high of CAD41.35 today for the second time in the past three months and last traded at CAD41.20. This brought its four-day rise to 57.0c or 1.4%. Trading volume was 1.1 times average so far today.

IGM Financial Inc. (T:IGM; TSE:IGM; N:IGM; CN:IGM)

ISIN: CA4495861060

PermID: 4295862164

CIK: IGM Financial Inc.

Source: www.BuySellSignals.com