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

Key Points

• Shares of WH Smith hit a new 52-week low, trading as low as GBX 512.50 on heavy volume (437,829) after a prior close of GBX 544.50.
• The company reported a quarterly EPS of GBX (20) with a negative net margin (−9.48%) and ROE (−90.46%), plus weak liquidity (quick ratio 0.42, current ratio 0.33) and extremely high debt-to-equity (846.40), signaling strained fundamentals.
• Analysts have cut price targets (recent downgrades from Berenberg, Canaccord and RBC) but the consensus remains a Moderate Buy, with an average target of GBX 720.50 (three Buy, three Hold).

Shares of WH Smith PLC (LON:SMWH - Get Free Report) hit a new 52-week low on Wednesday . The stock traded as low as GBX 512 and last traded at GBX 512.50, with a volume of 437829 shares. The stock had previously closed at GBX 544.50.

Wall Street Analyst Weigh In

SMWH has been the topic of several recent analyst reports. Berenberg Bank cut their price objective on shares of WH Smith from GBX 700 to GBX 667 and set a "hold" rating on the stock in a report on Monday, January 19th. Canaccord Genuity Group cut their price objective on shares of WH Smith from GBX 762 to GBX 680 and set a "buy" rating on the stock in a report on Friday, April 24th. Finally, Royal Bank Of Canada cut their price target on shares of WH Smith from GBX 675 to GBX 650 and set a "sector perform" rating on the stock in a report on Monday, April 13th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of GBX 720.50.

WH Smith Price Performance

The company's fifty day moving average is GBX 599.10 and its 200 day moving average is GBX 638.72. The company has a quick ratio of 0.42, a current ratio of 0.33 and a debt-to-equity ratio of 846.40. The stock has a market cap of £635.94 million, a PE ratio of -4.50, a price-to-earnings-growth ratio of 2.65 and a beta of 1.00.

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

Insider Activity at WH Smith

In other WH Smith news, insider Leo Quinn purchased 17,764 shares of the company's 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. Also, insider Max Izzard purchased 25,000 shares of the business's stock in a transaction dated Thursday, January 29th. The shares were acquired at an average price of GBX 675 per share, with a total value of £168,750. 1.03% of the stock is owned by company 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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