Shares of Stella-Jones Inc. (TSE:SJ) have received an average target price of C$95.71 from analysts at seven research firms covering the company, according to data from Marketbeat Ratings. The consensus rating is “Moderate Buy,” with three analysts recommending a hold and four suggesting a buy.
Several notable adjustments to price targets have occurred recently. On November 6, 2023, TD Securities raised its target for Stella-Jones from C$90.00 to C$97.00 while maintaining a buy rating. Earlier, on October 8, 2023, the Royal Bank of Canada increased its price objective from C$78.00 to C$87.00, categorizing the stock as “sector perform.”
In another significant upgrade, National Bankshares elevated its target from C$95.00 to C$107.00, labeling the stock as “outperform” in a note dated December 15, 2023. Desjardins has set a target price of C$102.00 and also rated the stock as a buy following their analysis on December 12, 2023. However, CIBC adjusted its target downward from C$90.00 to C$89.00 in a report released on November 7, 2023.
Recent Financial Performance
Stella-Jones announced its quarterly earnings on November 5, 2023, reporting earnings per share (EPS) of C$1.59 and revenues totaling C$958 million for the quarter. The company posted a return on equity of 18.36% and a net margin of 9.43%. Analysts estimate that Stella-Jones will achieve an EPS of approximately 6.45 for the current fiscal year.
Insider Activity
In a related development, Michelle Annette Banik, a director at Stella-Jones, acquired 472 shares of the company on November 12, 2023, at an average price of C$84.60 per share. The total value of this transaction was approximately C$39,931.20. Following this purchase, Banik now holds a total of 472 shares, reflecting an increase in her ownership of the stock. Notably, company insiders own only 0.14% of Stella-Jones stock.
Stella-Jones Inc. specializes in the production and sale of lumber and wood products, operating primarily in 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 focuses on sales of logs deemed unsuitable for utility poles and excess lumber sold to local home-building markets.
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