Cargojet (TSE:CJT) Hits New 1-Year Low - What's Next?

Cargojet Inc. (TSE:CJT) saw its shares drop to a new 52-week low on Friday, reaching as low as C$83.20 before closing at C$83.11. This decline occurred on a volume of 24,862 shares, down from a previous close of C$86.05.

Wall Street Analysts Provide Insights

Recently, several equity research analysts have published reports concerning Cargojet's stock. On February 19th, CIBC reduced their price target for Cargojet from C$177.00 to C$163.00. Additionally, National Bankshares lowered their forecast from C$158.00 to C$151.00 while maintaining an "outperform" rating for the stock in a report dated January 30th. Cormark also revised their estimate, cutting it from C$140.00 to C$120.00 on February 19th. On the other hand, Canaccord Genuity Group increased their price target from C$165.00 to C$173.00, while Royal Bank of Canada raised their target from C$189.00 to C$193.00, also on February 19th. Among analysts following the stock, one has rated it as hold, six have issued buy ratings, and one has assigned a strong buy rating to the company. According to MarketBeat, Cargojet currently holds a consensus rating of "Buy" with a target price estimate of C$162.80.

Understanding Cargojet's Stock Performance

The company's fifty-day moving average stands at C$103.84, and its 200-day moving average is C$117.29. Cargojet possesses a market capitalization of C$1.32 billion and has a P/E ratio of 576.96, indicating how much investors are willing to pay for each dollar of earnings. The stock has a beta of 0.91, suggesting lower volatility compared to the market. In terms of liquidity, the company has a current ratio of 0.56 and a quick ratio of 0.79. Its debt-to-equity ratio is quite high at 98.69, highlighting a significant reliance on borrowed funds.

Dividend Announcement from Cargojet

Recently, Cargojet announced a quarterly dividend that will be paid on Friday, April 4th, to registered investors. Shareholders of record on that date will receive a dividend of $0.35. The ex-dividend date is set for Thursday, March 20th. This translates to an annualized dividend of $1.40, providing a yield of 1.70%. However, the company has a remarkably high payout ratio of 982.53%, indicating that it is paying out more in dividends than it earns.

About Cargojet

Cargojet Inc. operates an extensive domestic air cargo network linking sixteen primary Canadian cities. The company provides dedicated aircraft services under an Aircraft, Crew, Maintenance, and Insurance arrangement. They operate between various locations in Canada and also between the USA, Mexico, and Europe. Additionally, Cargojet manages scheduled international routes for various cargo clients, serving connections between the USA and Bermuda, Canada and the UK, Germany, and Mexico.

Investment Considerations

For those contemplating investing in Cargojet, it may be wise to consider recent analyses. Although Cargojet holds a Buy rating from analysts, MarketBeat reports that some top-rated analysts have identified other stocks that may present better investment opportunities.

In summary, while Cargojet's recent performance indicates a drop in stock price and concerns about its financial metrics, investors should weigh these factors alongside analyst ratings and future potential before making a decision.

Cargojet, Stocks, Analysis