Stella-Jones (TSE:SJ) Shares Up 8.4% Following Dividend Announcement

Stella-Jones Inc. (TSE:SJ) rose 8.4% during mid-day trading on Wednesday after the company announced a dividend. The stock traded as high as C$81.00 and last traded at C$78.78. Approximately 114,493 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 139,655 shares. The stock had previously closed at C$72.67.

The newly announced dividend which will be paid on Friday, June 21st. Stockholders of record on Monday, June 3rd will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 1.42%. The ex-dividend date of this dividend is Monday, June 3rd. Stella-Jones’s dividend payout ratio (DPR) is presently 19.93%.

Analysts Set New Price Targets

Several equities research analysts have weighed in on SJ shares. Scotiabank upped their target price on Stella-Jones from C$86.00 to C$88.00 in a research note on Thursday. National Bankshares raised their price target on shares of Stella-Jones from C$87.00 to C$89.00 and gave the company an “outperform” rating in a research note on Friday, March 1st. Desjardins decreased their price target on shares of Stella-Jones from C$94.00 to C$92.00 and set a “buy” rating on the stock in a report on Friday, March 1st. TD Securities decreased their target price on shares of Stella-Jones from C$96.00 to C$94.00 and set a “buy” rating on the stock in a research note on Friday, March 1st. Finally, Royal Bank of Canada increased their price target on Stella-Jones from C$91.00 to C$94.00 and gave the company an “outperform” rating in a research note on Friday, March 1st. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of C$89.00.

Stella-Jones Price Performance

The firm’s 50 day moving average is C$77.76 and its 200 day moving average is C$78.30. The firm has a market cap of C$4.48 billion, a P/E ratio of 14.00, a price-to-earnings-growth ratio of 2.40 and a beta of 0.68. The company has a debt-to-equity ratio of 97.46, a current ratio of 5.07 and a quick ratio of 1.20.

Stella-Jones (TSE:SJ) last issued its earnings results on Thursday, February 29th. The company reported C$0.98 earnings per share (EPS) for the quarter, topping the consensus estimate of C$0.90 by C$0.08. The company had revenue of C$688.00 million for the quarter, compared to analysts’ expectations of C$722.50 million. Stella-Jones had a net margin of 9.82% and a return on equity of 20.32%. As a group, analysts anticipate that Stella-Jones Inc. will post 5.7169407 earnings per share for the current year.

Insider Buying and Selling

In other Stella-Jones news, Director Kevin Patrick Comerford bought 1,300 shares of the firm’s stock in a transaction that occurred on Tuesday, March 5th. The shares were bought at an average price of C$53.39 per share, with a total value of C$69,407.00. In other news, Director Kevin Patrick Comerford purchased 1,300 shares of the business’s stock in a transaction dated Tuesday, March 5th. The shares were purchased at an average price of C$53.39 per share, for a total transaction of C$69,407.00. Also, Director Simon Pelletier bought 2,000 shares of the company’s stock in a transaction on Wednesday, March 13th. The shares were bought at an average cost of C$73.15 per share, for a total transaction of C$146,290.00. In the last quarter, insiders bought 3,800 shares of company stock valued at $251,922. Company insiders own 0.14% of the company’s stock.

About Stella-Jones

Stella-Jones Inc produces and sells pressure-treated wood products in Canada and the United States. It operates through two segments, Pressure-Treated Wood; and Logs and Lumber. The company offers railway ties and timbers for short line and commercial railroad operators; and wood utility poles for electrical utilities and telecommunication companies.