WH Smith (LON:SMWH) Hits New 1-Year Low - Time to Sell?

Key Points

• Share price hit a new 52‑week low: WH Smith fell as low as GBX 497.20 (last GBX 498.40) on heavy volume (~1.77M shares), down from the prior close of GBX 516.
• Analysts have trimmed targets but still show Moderate Buy: Several brokers lowered price targets (RBC, Canaccord, Berenberg) yet the consensus is a "Moderate Buy" with an average target of GBX 720.50 (3 Buy, 3 Hold).
• Company fundamentals look weak with a quarterly EPS of GBX (20), negative ROE (~90%) and net margin (-9.48%), very high debt‑to‑equity (846.40) and low liquidity (current ratio 0.33), although insider Leo Quinn recently bought shares at GBX 560.

WH Smith PLC (LON:SMWH - Get Free Report)'s share price hit a new 52-week low on Tuesday . The company traded as low as GBX 497.20 and last traded at GBX 498.40, with a volume of 1766711 shares changing hands. The stock had previously closed at GBX 516.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on SMWH shares. Royal Bank Of Canada dropped their price target on shares of WH Smith from GBX 675 to GBX 650 and set a "sector perform" rating for the company in a research note on Monday, April 13th. Canaccord Genuity Group decreased their price objective on WH Smith from GBX 762 to GBX 680 and set a "buy" rating for the company in a research report on Friday, April 24th. Finally, Berenberg Bank dropped their price target on WH Smith from GBX 700 to GBX 667 and set a "hold" rating on the stock in a research note on Monday, January 19th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of GBX 720.50.

WH Smith Stock Performance

The stock's 50 day moving average is GBX 592.39 and its 200 day moving average is GBX 636.82. The company has a current ratio of 0.33, a quick ratio of 0.42 and a debt-to-equity ratio of 846.40. The firm has a market cap of £621.48 million, a price-to-earnings ratio of -5.15, a price-to-earnings-growth ratio of 2.65 and a beta of 1.00.

WH Smith (LON:SMWH - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The company reported GBX (20) earnings per share for the quarter. WH Smith had a negative return on equity of 90.46% and a negative net margin of 9.48%.The firm had revenue of £748 million for the quarter. Analysts anticipate that WH Smith PLC will post 100.9372747 earnings per share for the current year.

Insider Transactions at WH Smith

In other news, insider Leo Quinn acquired 17,764 shares of WH Smith stock in a transaction on Friday, April 24th. The shares were purchased at an average cost of GBX 560 per share, for a total transaction of £99,478.40. 1.03% of the stock is owned by insiders.

WH Smith Company Profile

WH Smith PLC operates as a retailer in the United Kingdom and internationally. It operates in two segments, Travel and High Street. The Travel segment offers news, books, and convenience for travelling customers. It operates stores in airports, hospitals, railway stations, and motorway service areas. The High Street segment sells stationery products, including greeting cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books.

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