Stella-Jones (TSE:SJ) Hits New 12-Month Low - Here's What Happened

Key Points

• Stella-Jones shares fell 2.3% to C$69.89, reaching a new 52-week low and trading well below their 50-day and 200-day moving averages.
• Analysts have recently reduced their price targets, though the stock retains a “Moderate Buy” consensus from eight analysts, with an average target of C$90.00.
• The company reported C$1.59 in quarterly earnings per share on C$1.04 billion in revenue, with a 7.36% net margin and 12.35% return on equity.

Shares of Stella-Jones Inc. (TSE:SJ - Get Free Report) reached a new 52-week low during trading on Monday . The stock traded as low as C$69.88 and last traded at C$69.89, with a volume of 90744 shares traded. The stock had previously closed at C$71.38.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Scotiabank cut their price target on Stella-Jones from C$93.00 to C$85.00 and set a "sector outperform" rating for the company in a report on Wednesday, August 12th. National Bank Financial lowered their price objective on Stella-Jones from C$95.00 to C$92.00 and set a "sector perform" rating for the company in a research report on Friday, August 7th. Desjardins dropped their target price on Stella-Jones from C$104.00 to C$99.00 and set a "buy" rating for the company in a research note on Friday, August 7th. TD reduced their target price on Stella-Jones from C$106.00 to C$93.00 and set a "buy" rating on the stock in a research report on Monday, May 11th. Finally, Canadian Imperial Bank of Commerce decreased their price target on Stella-Jones from C$87.00 to C$82.00 in a research note on Thursday, July 9th. 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, the company has a consensus rating of "Moderate Buy" and a consensus target price of C$90.00.

Stella-Jones Stock Down 2.3%

The company has a debt-to-equity ratio of 75.40, a current ratio of 5.25 and a quick ratio of 1.20. The firm's 50-day moving average is C$78.26 and its 200 day moving average is C$84.19. The stock has a market cap of C$3.81 billion, a price-to-earnings ratio of 14.77, a price-to-earnings-growth ratio of 2.40 and a beta of -0.07.

Stella-Jones (TSE:SJ - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported C$1.59 earnings per share for the quarter. The company 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 earnings per share 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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