Berenberg Bank Has Lowered Expectations for WH Smith (LON:SMWH) Stock Price

WH Smith (LON:SMWH) had its price target cut by Berenberg Bank from GBX 700 to GBX 667 in a research note issued to investors on Monday, Marketbeat.com reports. The firm presently has a “hold” rating on the stock. Berenberg Bank’s price objective would indicate a potential downside of 2.32% from the stock’s current price.

Several other equities analysts also recently commented on the company. Peel Hunt restated a “buy” rating and set a GBX 800 target price on shares of WH Smith in a research report on Friday, December 19th. JPMorgan Chase & Co. lifted their price objective on WH Smith from GBX 750 to GBX 800 and gave the company an “overweight” rating in a report on Tuesday, December 2nd. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of GBX 868.60.

WH Smith Stock Performance

Shares of LON SMWH opened at GBX 682.86 on Monday. The firm has a market capitalization of £851.49 million, a price-to-earnings ratio of -6.02, a PEG ratio of 2.65 and a beta of 1.67. WH Smith has a one year low of GBX 585.50 and a one year high of GBX 1,315. The business has a fifty day simple moving average of GBX 650.32 and a 200 day simple moving average of GBX 754.98. The company has a current ratio of 0.85, a quick ratio of 0.42 and a debt-to-equity ratio of 253.13.

WH Smith (LON:SMWH) last announced its quarterly earnings results on Friday, December 19th. The company reported GBX (14.20) earnings per share (EPS) for the quarter. WH Smith had a net margin of 3.44% and a return on equity of 17.78%. Sell-side analysts expect that WH Smith will post 100.9372747 EPS for the current year.

Insider Buying and Selling at WH Smith

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

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.