Stella-Jones (TSE:SJ) Sets New 1-Year Low Following Analyst Downgrade

Key Points

• Stella-Jones shares hit a new 52-week low of C$72.23 after Desjardins trimmed its price target to C$104 (from C$107); several other firms also lowered targets, leaving a consensus "Moderate Buy" rating with an average target of C$97.
• Company fundamentals and recent results: market cap C$3.94B, P/E 11.86 and PEG 2.40; the firm reported Q1 EPS of C$1.12 on C$791M revenue (net margin 8.66%, ROE 14.85%), and analysts forecast ~6.45 EPS for the year.

Stella-Jones Inc. (TSE:SJ - Get Free Report)'s share price reached a new 52-week low during trading on Friday after Desjardins lowered their price target on the stock from C$107.00 to C$104.00. Desjardins currently has a buy rating on the stock. Stella-Jones traded as low as C$72.23 and last traded at C$72.23, with a volume of 115007 shares trading hands. The stock had previously closed at C$74.42.

SJ has been the topic of a number of other reports. TD cut their price objective on Stella-Jones from C$107.00 to C$106.00 and set a "buy" rating on the stock in a report on Tuesday. Royal Bank Of Canada decreased their target price on shares of Stella-Jones from C$93.00 to C$85.00 and set a "sector perform" rating on the stock in a report on Thursday. TD Securities increased their price target on Stella-Jones from C$97.00 to C$107.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. National Bank Financial cut 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. Finally, Raymond James Financial decreased their price objective on shares of Stella-Jones from C$100.00 to C$95.00 and set an "outperform" rating for the company in a research report on Thursday. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Stella-Jones presently has an average rating of "Moderate Buy" and an average target price of C$97.00.

Stella-Jones Price Performance

The company has a quick ratio of 1.20, a current ratio of 4.96 and a debt-to-equity ratio of 80.71. The company has a 50 day moving average of C$89.83 and a 200-day moving average of C$88.24. The stock has a market capitalization of C$3.94 billion, a P/E ratio of 11.86, a PEG ratio of 2.40 and a beta of -0.15.

Stella-Jones (TSE:SJ - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported C$1.12 earnings per share (EPS) for the quarter. The firm had revenue of C$791.00 million during the quarter. Stella-Jones had a net margin of 8.66% and a return on equity of 14.85%. Sell-side analysts predict that Stella-Jones Inc. will post 6.4457565 EPS for the current year.

About Stella-Jones

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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