WH Smith (LON:SMWH) Trading Down 36.8% After Analyst Downgrade

Key Points

• WH Smith's share price fell significantly by 36.8%, trading as low as GBX 691.50 on Thursday, with a dramatic increase in trading volume.
• JPMorgan Chase & Co. maintains an "overweight" rating for WH Smith, while Canaccord Genuity reduced their price target from GBX 1,460 to GBX 1,350, indicating a buy rating.
• The company holds a market capitalization of £855.72 million and has a current ratio of 0.85, reflecting challenges in meeting short-term liabilities.

WH Smith PLC (LON:SMWH - Get Free Report)'s share price was down 36.8% during mid-day trading on Thursday 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 691.50 ($9.30) and last traded at GBX 701.46 ($9.44). Approximately 8,430,871 shares traded hands during mid-day trading, an increase of 1,630% from the average daily volume of 487,233 shares. The stock had previously closed at GBX 1,110 ($14.93).

Other research analysts have also issued reports about the stock. JPMorgan Chase & Co. reiterated an "overweight" rating on shares of WH Smith in a research note on Wednesday, July 30th. Canaccord Genuity Group cut their price objective 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. Finally, Peel Hunt downgraded shares of WH Smith to a "hold" rating and cut their price objective for the company 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 issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of GBX 1,178.20.

WH Smith Stock Performance

The business's fifty day moving average price is GBX 1,050.73 and its 200-day moving average price is GBX 1,044.22. The company has a debt-to-equity ratio of 253.13, a quick ratio of 0.42 and a current ratio of 0.85. The stock has a market cap of £901.27 million, a PE ratio of 14.44, a P/E/G ratio of 2.65 and a beta of 1.67.

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.