In a year marked by significant volatility, JELD-WEN Holding Inc. (NYSE:JELD) stock has recorded a new 52-week low, dipping to $8.13. With a beta of 2.13 and a market capitalization of $693 million, this latest price level reflects a stark contrast to the company's performance over the past year, with JELD experiencing a substantial 1-year decline of nearly 57%. According to InvestingPro analysis, the stock's RSI suggests it's currently in oversold territory, and the company maintains a healthy current ratio of 2.03, indicating strong short-term liquidity. Investors have been closely monitoring the stock as it struggles to regain momentum in a challenging economic environment, with market analysts citing various industry and macroeconomic factors contributing to the stock's downward trajectory. The 52-week low serves as a critical indicator for the company's valuation and investor sentiment, as stakeholders consider the implications of such a significant decline over the past year. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of JELD-WEN among 1,400+ US equities.
In other recent news, JELD-WEN Holding, Inc. has reported several significant developments. The company has decided to sell its Towanda, Pennsylvania unit to Woodgrain Inc. for approximately $115 million, a move resulting from a court-ordered divestiture. This sale is expected to decrease 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.
Simultaneously, JELD-WEN has experienced a decline in its third-quarter financial performance, with a 13% year-over-year decrease in revenue, dropping to $935 million. The company's adjusted EBITDA also fell to $82 million. In response to these results, Loop Capital has reduced their price target for JELD-WEN from $16 to $12, while maintaining a hold rating on the stock. RBC Capital also adjusted its stance on JELD-WEN, reducing the company's price target to $8 from the previous $9 while maintaining an Underperform rating on the stock.
These recent developments come amid a challenging period for JELD-WEN. The company has lost a major Midwest retailer's stock business, which is expected to impact annual sales by $75 million to $100 million. Despite these challenges, the company is implementing cost-reduction measures and focusing on operational efficiency to mitigate losses. JELD-WEN has revised its 2024 revenue guidance downward to between $3.7 billion and $3.75 billion, and anticipates $115 million in cost savings for the fiscal year. The company also expects an additional $100 million growth in EBITDA in 2025 due to transformation efforts.
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