Stella-Jones (OTCMKTS:STLJF) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down—STLJF opened at $55.12 after a $62.25 close, a roughly 11% gap and was trading down about 10% on light volume.
• Quarterly miss—Stella-Jones reported EPS of $0.65 versus $0.74 expected and revenue of $529.4M versus $554.5M consensus, a likely catalyst for the decline.
• Analyst sentiment remains positive—Scotiabank upgraded the stock to "outperform" and Desjardins reaffirmed "buy," leaving a consensus rating of "Buy."

Stella-Jones Inc. (OTCMKTS:STLJF - Get Free Report) shares gapped down prior to trading on Thursday . The stock had previously closed at $62.25, but opened at $55.12. Stella-Jones shares last traded at $55.12, with a volume of 106 shares trading hands.

Analysts Set New Price Targets

Several brokerages recently commented on STLJF. Scotiabank raised shares of Stella-Jones from a "sector perform" rating to an "outperform" rating in a report on Thursday, January 29th. Desjardins reaffirmed a "buy" rating on shares of Stella-Jones in a report on Thursday. Two research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy".

Stella-Jones Trading Down 10.1%

The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.34 and a current ratio of 7.40. The stock has a market capitalization of $2.99 billion and a price-to-earnings ratio of 84.17. The business has a fifty day simple moving average of $65.82 and a 200 day simple moving average of $63.98.

Stella-Jones (OTCMKTS:STLJF - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.74 by ($0.09). The firm had revenue of $529.37 million for the quarter, compared to the consensus estimate of $554.50 million. Stella-Jones had a return on equity of 16.68% and a net margin of 9.64%.

About Stella-Jones

Stella-Jones Inc is a North American producer and distributor of pressure-treated wood products used in infrastructure, utility and residential applications. The company’s core offerings include treated railroad ties, utility poles, crossarms, landscape timbers and posts designed to withstand environmental stresses and extend service life. These products support a range of end markets from railways and power transmission to fencing and outdoor construction.

Founded in 1970 and headquartered in Montreal, Canada, Stella-Jones has grown through both organic expansion and targeted acquisitions to establish a network of manufacturing and treatment facilities across Canada and the United States.

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