Stella-Jones (TSE:SJ) Sets New 52-Week Low - Should You Sell?

Key Points

• Stella-Jones shares hit a new 52-week low, trading as low as C$68.02 and closing near C$68.10, well below their 50-day and 200-day moving averages.
• Analysts have lowered their price targets, but sentiment remains positive overall: five analysts rate the stock a Buy and three rate it a Hold, producing a consensus “Moderate Buy” rating and an average target of C$90.00.
• The company reported quarterly revenue of C$1.04 billion and earnings of C$1.59 per share, with a 7.36% net margin and 12.35% return on equity.

Stella-Jones Inc. (TSE:SJ - Get Free Report) reached a new 52-week low during trading on Tuesday . The company traded as low as C$68.02 and last traded at C$68.10, with a volume of 76984 shares changing hands. The stock had previously closed at C$68.77.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Canadian Imperial Bank of Commerce reduced their price target on shares of Stella-Jones from C$87.00 to C$82.00 in a report on Thursday, July 9th. Desjardins cut their price objective 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. National Bank Financial cut 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 report on Friday, August 7th. Scotiabank reduced their price objective on shares of Stella-Jones from C$93.00 to C$85.00 and set a "sector outperform" rating for the company in a research note on Wednesday, August 12th. Finally, TD lowered their target price on Stella-Jones from C$106.00 to C$93.00 and set a "buy" rating for the company in a report on Monday, May 11th. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Stella-Jones presently has a consensus rating of "Moderate Buy" and an average target price of C$90.00.

Stella-Jones Price Performance

The firm has a market capitalization of C$3.72 billion, a P/E ratio of 14.43, a P/E/G ratio of 2.40 and a beta of -0.16. The stock's fifty day simple moving average is C$75.41 and its 200 day simple moving average is C$81.92. The company has a debt-to-equity ratio of 75.40, a current ratio of 5.25 and a quick ratio of 1.20.

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