Scotiabank Has Negative View of Stella-Jones FY2027 Earnings

Key Points

• Scotiabank lowered its FY2027 EPS forecast for Stella-Jones to C$6.34 from C$6.75, below the current consensus estimate of C$6.45. The bank maintained its “Sector Outperform” rating and C$97 price target.
• Several analysts have recently reduced their price targets, although the stock retains a “Moderate Buy” consensus rating from five Buy and three Hold ratings, with an average target of C$93.75.
• Stella-Jones shares opened at C$76.65, near the lower end of their 12-month range, while company insiders bought 3,443 shares worth approximately C$247,814 over the past three months.

Stella-Jones Inc. (TSE:SJ - Free Report) - Scotiabank dropped their FY2027 earnings per share (EPS) estimates for Stella-Jones in a research report issued to clients and investors on Wednesday, July 29th. Scotiabank analyst J. Goldman now expects that the company will post earnings per share of $6.34 for the year, down from their previous forecast of $6.75. Scotiabank has a "Sector Outperform" rating and a $97.00 price target on the stock. The consensus estimate for Stella-Jones' current full-year earnings is $6.45 per share.

Other equities analysts have also recently issued reports about the stock. Desjardins decreased their target price on shares of Stella-Jones from C$107.00 to C$104.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Royal Bank Of Canada cut their price objective on shares of Stella-Jones from C$85.00 to C$82.00 in a report on Thursday, July 9th. Canadian Imperial Bank of Commerce decreased their price objective on shares of Stella-Jones from C$87.00 to C$82.00 in a research report on Thursday, July 9th. TD lowered their target price on shares of Stella-Jones from C$106.00 to C$93.00 and set a "buy" rating on the stock in a research note on Monday, May 11th. Finally, National Bank Financial lowered shares of Stella-Jones from an "outperform" rating to a "hold" rating and lowered their target price for the stock from C$107.00 to C$95.00 in a research note on Wednesday, April 8th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of C$93.75.

Stella-Jones Price Performance

Shares of TSE SJ opened at C$76.65 on Friday. The stock has a market capitalization of C$4.18 billion, a price-to-earnings ratio of 13.89, a PEG ratio of 2.40 and a beta of -0.07. Stella-Jones has a 12 month low of C$69.94 and a 12 month high of C$101.31. The firm's 50 day simple moving average is C$79.30 and its 200-day simple moving average is C$85.77. The company has a debt-to-equity ratio of 80.71, a current ratio of 4.96 and a quick ratio of 1.20.

Stella-Jones (TSE:SJ - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported C$1.12 earnings per share (EPS) for the quarter. Stella-Jones had a return on equity of 14.85% and a net margin of 8.66%.The company had revenue of C$791.00 million during the quarter.

Insider Activity

In other Stella-Jones news, Director Kenner James bought 937 shares of Stella-Jones stock in a transaction dated Tuesday, May 12th. The stock was acquired at an average cost of C$73.22 per share, with a total value of C$68,607.14. Following the purchase, the director directly owned 1,834 shares in the company, valued at C$134,285.48. This represents a 104.46% increase in their position. Also, Director Anne Elizabeth Giardini bought 1,000 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were acquired at an average price of C$71.25 per share, for a total transaction of C$71,250.00. Following the transaction, the director directly owned 3,400 shares in the company, valued at approximately C$242,250. This represents a 41.67% increase in their ownership of the stock. Insiders acquired 3,443 shares of company stock worth $247,814 over the last three months. 0.14% of the stock is currently owned by corporate insiders.

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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