Stella-Jones (TSE:SJ) Sets New 1-Year Low - Should You Sell?

Key Points

• Stella-Jones shares fell to a new 52-week low, trading as low as C$68.20 versus the prior close of C$68.99.
• Analysts have recently lowered their price targets, but the consensus remains a “Moderate Buy” with an average target of C$90.00; five analysts rate the stock Buy and three rate it Hold.
• The company reported quarterly EPS of C$1.59 on revenue of C$1.04 billion, with a 7.36% net margin and 12.35% return on equity.

Stella-Jones Inc. (TSE:SJ - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as C$68.20 and last traded at C$68.33, with a volume of 29618 shares traded. The stock had previously closed at C$68.99.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Raymond James Financial reduced their price target on Stella-Jones from C$90.00 to C$83.00 and set an "outperform" rating on the stock in a research note on Friday, August 7th. Desjardins dropped their target price on shares of Stella-Jones from C$104.00 to C$99.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Canadian Imperial Bank of Commerce lowered their price target on shares of Stella-Jones from C$87.00 to C$82.00 in a research report on Thursday, July 9th. 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 on the stock in a research note on Friday, August 7th. Finally, Royal Bank Of Canada cut their price objective on shares of Stella-Jones from C$82.00 to C$79.00 and set a "sector perform" rating on the stock in a report on Friday, August 7th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of C$90.00.

Stella-Jones Stock Performance

The company has a current ratio of 5.25, a quick ratio of 1.20 and a debt-to-equity ratio of 75.40. The firm has a market capitalization of C$3.72 billion, a P/E ratio of 14.45, a price-to-earnings-growth ratio of 2.40 and a beta of -0.07. The business's 50 day simple moving average is C$76.74 and its two-hundred day simple moving average is C$82.98.

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

Stella-Jones Company Profile

Stella-Jones Inc produces and sells lumber and wood products. The company operates in two segments: Pressure-treated wood, which includes utility poles, railway ties, residential lumber, and industrial products; and Logs & Lumber segment comprises of the sales of logs harvested in the course of the company's procurement process that is determined to be unsuitable for use as utility poles, it also includes the sale of excess lumber to local home-building markets. The vast majority of its revenue comes from the Pressure-treated wood segment.

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