Wajax (TSE:WJX) Stock Crosses Above 200 Day Moving Average - What's Next?

Key Points

• Technical breakout: Wajax shares moved above their 200-day moving average (C$27.80), trading as high as C$33.36 and last at C$32.62 on Wednesday, signaling a bullish technical shift.
• Analyst sentiment: National Bank Financial upgraded Wajax to "outperform" with a C$37 target while BMO, Scotiabank and TD set targets around C$34; the consensus rating is "Hold" with an average target of C$34.75 (1 Buy, 3 Holds).
• Results and valuation: The company reported C$0.71 EPS for the quarter on C$560.05M revenue, with a market cap of C$711.7M, a P/E of 12.64 and a debt-to-equity ratio of 78.49.

Wajax Co. (TSE:WJX - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$27.80 and traded as high as C$33.36. Wajax shares last traded at C$32.62, with a volume of 44,729 shares.

Wall Street Analyst Weigh In

A number of analysts recently commented on WJX shares. National Bank Financial raised Wajax from a "hold" rating to an "outperform" rating and increased their price target for the company from C$27.00 to C$37.00 in a research report on Tuesday, March 3rd. BMO Capital Markets cut their price objective on Wajax from C$40.00 to C$34.00 and set a "market perform" rating on the stock in a research report on Wednesday, March 4th. Scotiabank upped their price objective on Wajax from C$29.00 to C$34.00 and gave the company a "sector perform" rating in a research note on Wednesday, March 4th. Finally, TD Securities raised their target price on Wajax from C$28.00 to C$34.00 and gave the company a "hold" rating in a research report on Wednesday, March 4th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of C$34.75.

Wajax Trading Up 0.7%

The stock's 50 day simple moving average is C$30.88 and its two-hundred day simple moving average is C$27.80. The stock has a market capitalization of C$711.70 million, a PE ratio of 12.64, a PEG ratio of 0.50 and a beta of 0.66. The company has a debt-to-equity ratio of 78.49, a current ratio of 2.14 and a quick ratio of 0.71.

Wajax (TSE:WJX - Get Free Report) last issued its quarterly earnings results on Tuesday, March 3rd. The company reported C$0.71 earnings per share (EPS) for the quarter. Wajax had a net margin of 2.68% and a return on equity of 10.91%. The company had revenue of C$560.05 million during the quarter. On average, sell-side analysts expect that Wajax Co. will post 3.4850136 EPS for the current year.

Wajax Company Profile

Wajax Corp is a Canadian distributor of industrial components. The company's core business is the sale of parts and service support of equipment, power systems, and industrial components through a network of branches in Canada. Most of its revenue is generated from the sale of equipment which includes machinery and components used for construction purposes and its industrial components find utility in businesses like mining, forestry, and material handling for other industrial purposes. It sells to leading manufacturer brands such as Hitachi, JCB, Bell, Hyster, Palfinger and other similar industries.

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