Superior Plus Corp. (TSE:SPB) experienced a significant decline in its share price, dropping by 21.1% on Friday, following a downgrade from CIBC. The investment firm reduced its price target for the stock from C$9.00 to C$8.50, leading to a trading low of C$6.06 before it closed at C$6.29. Approximately 5,947,104 shares changed hands during the day, marking an increase of 658% compared to the average daily volume of 784,607 shares.
The stock had previously closed at C$7.97, highlighting the sharp contrast in investor sentiment prompted by CIBC’s reassessment. This downgrade comes as part of a series of ratings adjustments from various research firms concerning Superior Plus.
Recent Analyst Assessments
On October 10, BMO Capital Markets raised its price target on Superior Plus from C$8.00 to C$10.00. Meanwhile, Raymond James Financial adjusted its target from C$10.50 to C$10.00 while maintaining an “outperform” rating in a report dated August 14. Additionally, Desjardins lowered its price target from C$10.50 to C$9.75 but retained a “buy” rating in a report released on August 13. TD Securities also made a move, increasing its price objective from C$8.00 to C$9.00 and assigning a “hold” rating on October 9.
Currently, five equities research analysts have assigned a “buy” rating to Superior Plus, with two issuing a “hold” rating. According to MarketBeat.com, the stock holds an average rating of “Moderate Buy” and has an average price target of C$9.41.
Financial Performance and Dividend Announcement
Superior Plus reported its quarterly earnings results on November 13, revealing earnings of C($0.47) per share (EPS) for the period. The company’s revenue was C$470.64 million, reflecting a net margin of 1.80% and a return on equity of 4.21%.
In addition to its earnings report, Superior Plus announced a quarterly dividend that was paid on October 15. Shareholders on record as of that date received a dividend of $0.045, which translates to an annualized dividend of $0.18 and a yield of 2.9%. The ex-dividend date was September 29, and the company’s dividend payout ratio currently stands at 109.01%.
Superior Plus is a prominent North American distributor of propane, compressed natural gas, renewable energy, and related products and services. The company serves approximately 770,000 customer locations across the United States and Canada, delivering clean-burning fuels to residential, commercial, utility, agricultural, and industrial clients not connected to a pipeline.
As the company navigates these recent market shifts, investors will be closely monitoring its performance and analyst evaluations in the coming weeks.
