Wajax (TSE:WJX) Trading Down 10.8% - Should You Sell?

Key Points

• Wajax shares fell 10.8% to C$30.55, with trading volume 86% above the average session level.
• Analysts have lowered their price targets, resulting in a consensus “Hold” rating and an average target of C$34.20; ratings include one Buy and four Holds.
• Wajax reported quarterly EPS of C$0.82 on revenue of C$515.67 million, while its net margin was 2.97%. Director Jane Craighead also purchased 1,100 shares, increasing her ownership by 10.19%.

Wajax Co. (TSE:WJX - Get Free Report) shares fell 10.8% on Friday . The company traded as low as C$30.00 and last traded at C$30.55. 125,679 shares were traded during trading, an increase of 86% from the average session volume of 67,661 shares. The stock had previously closed at C$34.26.

Analyst Ratings Changes

A number of brokerages have commented on WJX. National Bank Financial dropped their target price on shares of Wajax from C$37.00 to C$34.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 6th. Scotiabank decreased their price target on shares of Wajax from C$37.00 to C$36.00 and set a "sector perform" rating for the company in a research note on Tuesday, July 7th. Finally, TD lowered their price target on Wajax from C$35.00 to C$33.00 and set a "hold" rating for the company in a report on Wednesday, May 6th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of C$34.20.

Wajax Stock Performance

The company has a quick ratio of 0.71, a current ratio of 1.88 and a debt-to-equity ratio of 72.41. The firm has a 50 day moving average price of C$31.46 and a 200 day moving average price of C$30.98. The stock has a market cap of C$663.20 million, a PE ratio of 10.91, a price-to-earnings-growth ratio of 0.50 and a beta of 0.44.

Wajax (TSE:WJX - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported C$0.82 earnings per share for the quarter. The company had revenue of C$515.67 million during the quarter. Wajax had a net margin of 2.97% and a return on equity of 11.63%. As a group, research analysts forecast that Wajax Co. will post 3.4850136 earnings per share for the current year.

Insider Buying and Selling at Wajax

In other Wajax news, Director Jane Craighead acquired 1,100 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were purchased at an average cost of C$28.84 per share, for a total transaction of C$31,724.00. Following the completion of the purchase, the director owned 11,900 shares in the company, valued at approximately C$343,196. This trade represents a 10.19% increase in their ownership of the stock. Insiders own 0.97% of the company's stock.

About Wajax

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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