Shares of Stella-Jones Inc. (TSE:SJ) have received an average price target of C$95.71 from analysts, reflecting a “Moderate Buy” rating from the seven research firms currently covering the company, according to data from Marketbeat Ratings. This consensus is grounded in a combination of hold and buy ratings, with three analysts recommending a hold and four endorsing a buy.
Several investment firms have recently adjusted their target prices for Stella-Jones, highlighting varied optimism about the company’s future performance. TD Securities raised their price target from C$90.00 to C$97.00, affirming a “buy” rating in a report dated November 6, 2023. Meanwhile, the Royal Bank of Canada increased its forecast from C$78.00 to C$87.00, assigning a “sector perform” rating on October 8, 2023.
In a more bullish projection, National Bankshares elevated their target from C$95.00 to C$107.00, granting the stock an “outperform” rating on December 15, 2023. Conversely, CIBC lowered its target from C$90.00 to C$89.00 on November 7, 2023.
Stella-Jones Financial Performance
The company’s financial standing was recently highlighted in its quarterly earnings report issued on November 5, 2023. Stella-Jones reported earnings per share (EPS) of C$1.59 for the quarter, with a total revenue of C$958 million. The firm demonstrated a solid return on equity of 18.36% and a net margin of 9.43%. Analysts predict that Stella-Jones will achieve an EPS of approximately 6.45 for the current fiscal year.
Insider Activity and Ownership
In related developments, Michelle Annette Banik, a director at Stella-Jones, purchased 472 shares of the company’s stock on November 12, 2023. The shares were acquired at an average price of C$84.60 each, totaling C$39,931.20. Following this transaction, Banik increased her ownership stake in the company. Currently, company insiders hold approximately 0.14% of the stock.
Stella-Jones operates primarily in the lumber and wood products sector, focusing on two segments: pressure-treated wood and logs & lumber. The pressure-treated wood segment, which includes utility poles, railway ties, and residential lumber, constitutes the majority of the company’s revenue. The logs & lumber segment involves the sale of logs deemed unsuitable for utility poles and excess lumber to local building markets.
This comprehensive analysis of Stella-Jones reflects a generally positive outlook from analysts, indicating confidence in the company’s continued performance in the lumber industry.
