WH Smith (LON:SMWH) Shares Down 38.9% After Analyst Downgrade

Key Points

• WH Smith's stock plunged 38.9% in trading, reaching a low of GBX 676 ($9.10) and a last trade of GBX 678.50 ($9.13), significantly down from a previous close of GBX 1,110 ($14.94).
• Despite the sharp decline, analysts maintain a consensus rating of "Moderate Buy" for WH Smith, with four analysts giving it a Buy rating and an average price target of GBX 1,430.
• The company operates primarily in the Travel and High Street segments, focusing on retailing news, books, and convenience products for travelers.

WH Smith PLC (LON:SMWH - Get Free Report) shares traded down 38.9% 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 676 ($9.14) and last traded at GBX 678.50 ($9.17). 9,162,330 shares traded hands during mid-day trading, an increase of 1,763% from the average session volume of 491,748 shares. The stock had previously closed at GBX 1,110 ($15.00).

A number of other research firms also recently commented on SMWH. Peel Hunt downgraded WH Smith to a "hold" rating and dropped their price objective for the stock from GBX 1,400 to GBX 755 in a report on Thursday. JPMorgan Chase & Co. restated an "overweight" rating on shares of WH Smith in a report on Wednesday, July 30th. Finally, Canaccord Genuity Group dropped their price objective on WH Smith from GBX 1,460 to GBX 1,350 and set a "buy" rating on the stock in a report on Monday, June 9th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of GBX 1,178.20.

WH Smith Stock Up 11.1%

The company has a current ratio of 0.85, a quick ratio of 0.42 and a debt-to-equity ratio of 253.13. The firm has a market cap of £915.43 million, a price-to-earnings ratio of 14.67, a PEG ratio of 2.65 and a beta of 1.67. The firm has a 50-day moving average of GBX 1,058.41 and a two-hundred day moving average of GBX 1,048.10.

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.