WH Smith (LON:SMWH) Reaches New 1-Year Low - What's Next?

Key Points

• WH Smith hit a new 52-week low, trading as low as GBX 549.50 and last at GBX 552.50 on heavy volume (589,555 shares), well below its 50‑day (GBX 653.02) and 200‑day (GBX 660.19) moving averages.
• Analyst sentiment is mixed but tilted positive with an average rating of "Moderate Buy" and an average price target of GBX 868.60, while recent notes include JPMorgan and Peel Hunt raising targets to GBX 800.
• Underlying fundamentals are weak—EPS of GBX (14.20), negative net margin and ROE, a very high debt‑to‑equity of 872.78 and low liquidity—though insiders have recently bought ~32,992 shares.

WH Smith PLC (LON:SMWH - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The company traded as low as GBX 549.50 and last traded at GBX 552.50, with a volume of 589555 shares changing hands. The stock had previously closed at GBX 561.

Analyst Upgrades and Downgrades

SMWH has been the subject of several research reports. JPMorgan Chase & Co. raised their price objective on WH Smith from GBX 750 to GBX 800 and gave the stock an "overweight" rating in a research note on Tuesday, December 2nd. Berenberg Bank reduced their target price on WH Smith from GBX 700 to GBX 667 and set a "hold" rating for the company in a report on Monday, January 19th. Finally, Peel Hunt reiterated a "buy" rating and issued a GBX 800 price target on shares of WH Smith in a research report on Friday, December 19th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of GBX 868.60.

WH Smith Stock Down 1.5%

The company has a debt-to-equity ratio of 872.78, a quick ratio of 0.42 and a current ratio of 0.39. The stock has a market cap of £688.94 million, a price-to-earnings ratio of -4.87, a price-to-earnings-growth ratio of 2.65 and a beta of 0.96. The business's 50 day moving average is GBX 653.02 and its 200 day moving average is GBX 660.19.

WH Smith (LON:SMWH - Get Free Report) last announced its earnings results on Friday, December 19th. The company reported GBX (14.20) earnings per share (EPS) for the quarter. WH Smith had a negative net margin of 9.27% and a negative return on equity of 62.07%. Equities analysts expect that WH Smith PLC will post 100.9372747 earnings per share for the current year.

Insider Buying and Selling at WH Smith

In other WH Smith news, insider Max Izzard purchased 25,000 shares of the company's stock in a transaction that occurred on Thursday, January 29th. The shares were purchased at an average cost of GBX 675 per share, with a total value of £168,750. Also, insider Helen Rose acquired 7,972 shares of WH Smith stock in a transaction that occurred on Thursday, January 8th. The stock was acquired at an average cost of GBX 627 per share, with a total value of £49,984.44. Insiders have purchased 32,992 shares of company stock worth $21,886,244 over the last three months. 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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