Weyerhaeuser Company (NYSE:WY) has been downgraded by BofA/Merrill on January 02 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at Vertical Research, shed their negative views on October 24 by lifting it fromHold to Buy. The stock won favor of BofA/Merrill analysts who expressed their confidence in it using an upgrade from Neutral to Buy on January 24.
Weyerhaeuser Company (WY) hit an intraday high Thursday at $24.34. The shares finished at $24.3, after trading as low as $23.69 earlier in the session. It rose 2.53% in recent trade and currently has a stock-market value of $18.35B. Trading activity significantly weakened as the volume at ready counter decreased to 5,954,349 shares versus 7,758,770 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 6,535,800 shares. The stock is now 18.42% above against its bear-market low of $20.52 on December 26, 2018. It has retreated -57.98% since it’s 52-week high of $38.39 reached in June. Now the market price is down -31.08% on the year and up 11.16% YTD.
WY’s 50 day simple moving average (SMA 50) price is $25.11 and its 200-day simple moving average (SMA 200) price is $32.36. The company’s stock currently has a total float of 747.47M shares. Its weekly volatility is hovering around 2.75% and felt 3.32% volatility in price over a month. On the upside, the share price will test short term resistance at around $24.53. On a downside, the stock is likely to find some support, which begins at $23.88. The failure to get near-term support could push it to $23.46.
Separately, it has been reported that multiple insider activity took place at Weyerhaeuser Company (WY). Senior Vice President Stockfish Devin W acquired 27,890 shares for $99,171 in transaction occurred on 2018/11/13. After making this transaction, the Senior Vice President owns a direct stake of 751,078 shares, worth $2,409,855, as per the last closing price. On 2018/02/23 Hillman Jeanne M, VP & Chief Accounting Officer at WY, dumped 15,389 shares at an average price of $35.22 per share. The selling total is valued at $1,553,621.
Sr. Vice President, Hunter Rhonda D had divested 23,343 shares for $76,304 through a trade on 2017/11/24. Following this activity, the insider holds 843,149 shares worth $1,854,187 as of recent close. Wall Street’s most bullish Weyerhaeuser Company (NYSE:WY) analysts are predicting the share price to blow past $35 per share during the next 12 months. The current median share price forecast by them is $30, suggesting that the stock could increase 23.46% in that time frame. The average price target of $29.5 calls for a nearly 21.4% increase in the stock price.
When looking at valuations, Weyerhaeuser Company (WY) has a cheap P/E of 15.84x as compared to industry average of 47.22x. Moreover, it trades for 21.22 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.02x price/book and 2.39x price/sales. Compared to others, Weyerhaeuser Company is in a different league with regards to profitability, having net margins of 14.5%. To put some perspective around this, the industry’s average net margin is 35.6%. WY’s ROE is 12.3%, which is also considerably worse than the industry’s ROE of 14.32%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.71.
Shares of Weyerhaeuser Company (WY) have dropped -18.1% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Weyerhaeuser Company (NYSE:WY) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 4 quarters (33%), whereas at 1 occasion EPS met analyst expectations. WY last reported earnings on October 26, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.28 per share, -98.88% change on the same period last year. That was worse than consensus for $0.37. Revenue for the recent quarter stood at $1.91 billion, up 2% on last year and below the $1.98 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.74 billion to $1.79 billion, which should be compared with $0 generated last year. EPS is seen in a range of $0.2 to $0.41, against the $0.37 reported a year ago.