Stella-Jones (TSE:SJ) Reaches New 1-Year Low on Analyst Downgrade

Key Points

• Stella-Jones shares hit a new 52-week low, falling to C$66.43 after RBC cut its price target from C$79 to C$76.
• Several analysts have recently reduced their price targets, but the stock retains a “Moderate Buy” consensus from eight analysts, with an average target of C$89.62.
• The company reported quarterly revenue of C$1.04 billion and earnings of C$1.59 per share, alongside a 7.36% net margin and 12.35% return on equity.

Stella-Jones Inc. (TSE:SJ - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Thursday after Royal Bank Of Canada lowered their price target on the stock from C$79.00 to C$76.00. The company traded as low as C$66.43 and last traded at C$66.75, with a volume of 12923 shares. The stock had previously closed at C$67.45.

SJ has been the subject of a number of other reports. Canadian Imperial Bank of Commerce cut their target price on shares of Stella-Jones from C$87.00 to C$82.00 in a report on Thursday, July 9th. Desjardins lowered their price objective on shares of Stella-Jones from C$104.00 to C$99.00 and set a "buy" rating for the company in a research report on Friday, August 7th. National Bank Financial dropped their price objective on shares of Stella-Jones from C$95.00 to C$92.00 and set a "sector perform" rating for the company in a research note on Friday, August 7th. Scotiabank reduced their target price on shares of Stella-Jones from C$93.00 to C$85.00 and set a "sector outperform" rating on the stock in a report on Wednesday, August 12th. Finally, Raymond James Financial decreased their target price on shares of Stella-Jones from C$90.00 to C$83.00 and set an "outperform" rating on the stock in a research report on Friday, August 7th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of C$89.62.

Stella-Jones Price Performance

The firm has a market cap of C$3.63 billion, a P/E ratio of 14.09, a PEG ratio of 2.40 and a beta of -0.16. The company has a debt-to-equity ratio of 75.40, a current ratio of 5.25 and a quick ratio of 1.20. The stock's 50-day simple moving average is C$71.92 and its two-hundred day simple moving average is C$78.65.

Stella-Jones (TSE:SJ - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported C$1.59 earnings per share (EPS) for the quarter. Stella-Jones had a net margin of 7.36% and a return on equity of 12.35%. The firm had revenue of C$1.04 billion during the quarter. Equities research analysts forecast that Stella-Jones Inc. will post 6.4457565 earnings per share for the current fiscal year.

Stella-Jones Company Profile

Stella-Jones Inc TSX: SJ is a leading North American manufacturer of products focused on supporting infrastructure essential to the electrical distribution and transmission network, and the operation and maintenance of railway transportation systems. It supplies the continent's major electrical utility companies with treated wood poles and crossarms, steel lattice towers and steel transmission poles, as well as North America's Class 1, short line and commercial railroad operators with treated wood railway ties.

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