In a turbulent market environment, JELD-WEN Holding Inc. (NYSE:) stock has reached a 52-week low, trading at $8.89. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while the company maintains a healthy liquidity position with a current ratio of 2.03. The company, known for its manufacturing of building products, has faced significant headwinds over the past year, reflected in a revenue decline of 12.58%. Despite current challenges, InvestingPro analysis suggests the company’s net income is expected to grow this year, with the stock currently trading below its Fair Value. Investors are closely monitoring the stock as it hovers at this low point, considering the broader economic factors at play that have contributed to the company’s performance. The current price level presents a critical juncture for JELD-WEN, as market participants weigh the potential for recovery against ongoing industry and economic pressures. InvestingPro subscribers have access to 10+ additional exclusive insights about JELD-WEN’s financial health and growth prospects.
In other recent news, JELD-WEN Holding, Inc. has been the subject of significant developments. The company has reported a decrease in third-quarter sales and earnings before interest, taxes, depreciation, and amortization (EBITDA), with revenues falling to $935 million and adjusted EBITDA dropping to $82 million. This decline has led to the revision of its 2024 revenue guidance downward to between $3.7 billion and $3.75 billion.
The company has also disclosed the sale of its Towanda, Pennsylvania business to Woodgrain Inc. for approximately $115 million. This sale is expected to reduce JELD-WEN’s annual revenue by $150 million to $200 million and EBITDA by $25 million to $50 million in the year following the transaction’s completion.
Analysts at RBC Capital Markets and Loop Capital have adjusted their stance on JELD-WEN. RBC has reduced the company’s price target to $8 from the previous $9 while maintaining an Underperform rating. Similarly, Loop Capital has reduced its price target from $16 to $12, while maintaining a Hold rating.
These recent developments follow the company’s loss of a major Midwest retailer’s stock business, which is expected to impact annual sales by $75 million to $100 million. Despite these challenges, JELD-WEN has implemented cost-reduction measures and is focusing on operational efficiency. The company also expects an additional $100 million growth in EBITDA in 2025 due to transformation efforts.
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