WH Smith (LON:SMWH) Shares Down 40.5% Following Analyst Downgrade

Key Points

• WH Smith PLC saw its stock price plunge by 40.5% in a single trading session, reaching a low of GBX 628 ($8.43) before closing at GBX 660.33 ($8.86).
• Despite the sharp decline, analysts maintain a mixed outlook with a consensus rating of "Moderate Buy" and a target price of GBX 1,430.
• The company, which operates retail segments in Travel and High Street, has experienced a significant increase in trading volume, exceeding average levels by 1,624%.

WH Smith PLC (LON:SMWH - Get Free Report)'s stock price was down 40.5% during trading on Friday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 1,030 to GBX 726. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. WH Smith traded as low as GBX 628 ($8.48) and last traded at GBX 660.33 ($8.91). Approximately 8,394,045 shares were traded during trading, an increase of 1,624% from the average daily volume of 487,005 shares. The stock had previously closed at GBX 1,110 ($14.98).

A number of other equities analysts have also commented on SMWH. Canaccord Genuity Group reduced their target price on shares of WH Smith from GBX 1,460 to GBX 1,350 and set a "buy" rating on the stock in a research report on Monday, June 9th. JPMorgan Chase & Co. reaffirmed an "overweight" rating on shares of WH Smith in a research report on Wednesday, July 30th. Finally, Peel Hunt lowered shares of WH Smith to a "hold" rating and reduced their target price for the stock from GBX 1,400 to GBX 755 in a research report on Thursday, August 21st. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, WH Smith has a consensus rating of "Moderate Buy" and a consensus target price of GBX 1,178.20.

WH Smith Trading Down 1.6%

The company has a market capitalization of £887.10 million, a price-to-earnings ratio of 14.21, a P/E/G ratio of 2.65 and a beta of 1.67. The company has a quick ratio of 0.42, a current ratio of 0.85 and a debt-to-equity ratio of 253.13. The company's 50 day simple moving average is GBX 1,034.73 and its two-hundred day simple moving average is GBX 1,039.40.

About WH Smith

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.