WH Smith PLC (LON:SMWH) Given Consensus Rating of “Moderate Buy” by Analysts

Shares of WH Smith PLC (LON:SMWH) have been assigned an average recommendation of “Moderate Buy” from the five brokerages that are presently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is GBX 868.60.

Several equities research analysts recently commented on the stock. Berenberg Bank reduced their price target on shares of WH Smith from GBX 700 to GBX 667 and set a “hold” rating for the company in a research report on Monday. Peel Hunt restated a “buy” rating and issued a GBX 800 target price on shares of WH Smith in a report on Friday, December 19th. Finally, JPMorgan Chase & Co. lifted their price target on WH Smith from GBX 750 to GBX 800 and gave the company an “overweight” rating in a report on Tuesday, December 2nd.

Insider Activity

In related news, insider Max Izzard sold 1,704 shares of the firm’s stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of GBX 637, for a total transaction of £10,854.48. Also, insider Helen Rose bought 7,972 shares of WH Smith stock in a transaction on Thursday, January 8th. The stock was acquired at an average price of GBX 627 per share, with a total value of £49,984.44. 1.01% of the stock is owned by insiders.

WH Smith Price Performance

Shares of LON:SMWH opened at GBX 682.86 on Wednesday. The stock has a market cap of £851.49 million, a price-to-earnings ratio of -6.02, a PEG ratio of 2.65 and a beta of 1.67. The company has a debt-to-equity ratio of 253.13, a current ratio of 0.85 and a quick ratio of 0.42. WH Smith has a 12 month low of GBX 585.50 and a 12 month high of GBX 1,315. The stock’s 50 day moving average price is GBX 650.32 and its 200 day moving average price is GBX 754.98.

WH Smith (LON:SMWH) last released its quarterly earnings data on Friday, December 19th. The company reported GBX (14.20) earnings per share for the quarter. WH Smith had a return on equity of 17.78% and a net margin of 3.44%. Equities research analysts anticipate that WH Smith will post 100.9372747 earnings per share for the current fiscal year.

Key Stories Impacting WH Smith

Here are the key news stories impacting WH Smith this week:

• Positive Sentiment: Appointment of Leo Quinn as Executive Chair signals a board-led push for a turnaround and higher governance experience; this is the main catalyst behind the initial share rally. UK’s WH Smith names Leo Quinn as new chair
• Positive Sentiment: Market reaction: coverage and trading note that the stock “soared” on the appointment, reflecting short-term investor enthusiasm for a seasoned turnaround chief. Momentum from this reaction can attract short-term buyers ahead of further strategic announcements. WH Smith stock soars after appointment of Leo Quinn as Executive Chairman
• Neutral Sentiment: Dividend timing: WH Smith is two days away from trading ex-dividend — investors wanting the dividend may buy ahead of the ex-date, while some selling typically happens on the ex-date itself. This timing can cause short-term volume and price swings independent of fundamentals. Two Days Left Until WH Smith PLC (LON:SMWH) Trades Ex-Dividend
• Negative Sentiment: Analyst downgrade/price-target cut: Berenberg lowered its target from GBX 700 to GBX 667 and now has a “hold” rating, reducing near-term analyst support for upside and providing a reason for profit-taking. Broker Ratings – Digital Look
• Negative Sentiment: Compensation scrutiny: reporting that Quinn’s hire may include a package “that could be worth £25m” risks investor concern over large pay awards, potential dilution or long-term cost commitments — a factor that can weigh on sentiment and governance-focused investors. WH Smith hire turnaround veteran with package that could be worth £25m

WH Smith Company Profile

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. The High Street segment sells stationery products, including greeting cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books.