Stella-Jones (TSE:SJ) Sets New 12-Month Low - Time to Sell?

Key Points

• Stella-Jones shares fell to a new 52-week low, trading as low as C$64.13 and last changing hands at C$64.49, below its 50-day and 200-day moving averages.
• Analysts have recently cut their price targets, but sentiment remains generally positive: five analysts rate the stock Buy and three Hold, producing a “Moderate Buy” consensus and an average target of C$89.62.
• The company reported C$1.59 in quarterly EPS on C$1.04 billion in revenue, with a 12.35% return on equity and 7.36% net margin; analysts expect full-year EPS of C$6.45.

Stella-Jones Inc. (TSE:SJ - Get Free Report) hit a new 52-week low on Tuesday. The company traded as low as C$64.13 and last traded at C$64.49, with a volume of 57,701 shares trading hands. The stock had previously closed at C$65.00.

Wall Street Analyst Weigh In

SJ has been the subject of several research reports. Scotiabank decreased their target price on Stella-Jones from C$93.00 to C$85.00 and set a "sector outperform" rating for the company in a research report on Wednesday, August 12th. Raymond James Financial reduced their price objective 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. National Bank Financial reduced their price objective on 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. Canadian Imperial Bank of Commerce decreased their price objective on shares of Stella-Jones from C$87.00 to C$82.00 in a report on Thursday, July 9th. Finally, Royal Bank Of Canada lowered their target price on shares of Stella-Jones from C$79.00 to C$76.00 in a research note on Wednesday, September 30th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of C$89.62.

Stella-Jones Stock Down 1.4%

The stock's 50-day moving average is C$69.96 and its 200-day moving average is C$77.06. The stock has a market cap of C$3.50 billion, a P/E ratio of 13.58, a price-to-earnings-growth ratio of 2.40 and a beta of -0.12. The company has a current ratio of 5.25, a quick ratio of 1.20 and a debt-to-equity ratio of 75.40.

Stella-Jones (TSE:SJ - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported C$1.59 EPS for the quarter. Stella-Jones had a return on equity of 12.35% and a net margin of 7.36%. The company had revenue of C$1.04 billion for the quarter. As a group, research analysts anticipate that Stella-Jones Inc. will post 6.45 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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