Weyerhaeuser (WY) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of Weyerhaeuser (NYSE:WY) from a buy rating to a hold rating in a report published on Saturday. Zacks Investment Research currently has $39.00 price objective on the real estate investment trust’s stock.
According to Zacks, “We believe that Weyerhaeuser is poised to benefit from the recovery of the housing market in the United States, its inorganic policies and cost-control measures in the years ahead. In November, the company hiked its quarterly dividend rate by 3.2%. Such disbursements reflect the company's strong cash position and its commitment toward rewarding its shareholders handsomely. For the fourth quarter (results not yet released), the company anticipates sequentially higher earnings for the Timberland and Real Estate, Energy & Natural Resources segments. Savings from operational initiatives will be within $95-$125 million in 2017. On the flip side, headwinds like high debt levels, unfavorable foreign currency movements and industry competition might restrict the company's growth in the quarters ahead. In the last three months, the company's shares have underperformed the industry and look overvalued comparatively.”
Other equities analysts have also recently issued research reports about the stock. TheStreet raised shares of Weyerhaeuser from a c+ rating to a b- rating in a research report on Wednesday, November 8th. Argus raised their price target on shares of Weyerhaeuser from $37.00 to $39.00 and gave the company a buy rating in a research report on Thursday, November 2nd. Finally, Stephens started coverage on shares of Weyerhaeuser in a research report on Tuesday, October 24th. They issued an equal weight rating and a $35.00 price target on the stock. Seven equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Weyerhaeuser presently has a consensus rating of Hold and an average price target of $37.44.
Shares of Weyerhaeuser (NYSE:WY) traded up $0.27 during midday trading on Friday, reaching $35.26. 2,891,478 shares of the company traded hands, compared to its average volume of 2,576,338. Weyerhaeuser has a twelve month low of $29.88 and a twelve month high of $36.92. The company has a market cap of $26,615.27, a PE ratio of 30.93, a price-to-earnings-growth ratio of 5.26 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.15 and a current ratio of 1.48.
Weyerhaeuser (NYSE:WY) last announced its quarterly earnings results on Friday, October 27th. The real estate investment trust reported $0.34 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.31 by $0.03. Weyerhaeuser had a net margin of 12.37% and a return on equity of 8.15%. The business had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.85 billion. During the same quarter last year, the firm earned $0.30 EPS. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year. equities analysts predict that Weyerhaeuser will post 1.2 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, December 15th. Shareholders of record on Friday, December 1st were paid a $0.32 dividend. This is a positive change from Weyerhaeuser’s previous quarterly dividend of $0.31. The ex-dividend date of this dividend was Thursday, November 30th. This represents a $1.28 annualized dividend and a yield of 3.63%. Weyerhaeuser’s dividend payout ratio (DPR) is 112.28%.
In other Weyerhaeuser news, insider Rhonda D. Hunter sold 45,939 shares of the stock in a transaction dated Tuesday, November 14th. The shares were sold at an average price of $35.72, for a total value of $1,640,941.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Rick R. Holley sold 227,341 shares of the stock in a transaction dated Monday, October 16th. The shares were sold at an average price of $35.05, for a total transaction of $7,968,302.05. The disclosure for this sale can be found here. In the last quarter, insiders sold 296,623 shares of company stock valued at $10,452,392. Company insiders own 1.20% of the company’s stock.
A number of large investors have recently bought and sold shares of WY. Hexavest Inc. increased its stake in shares of Weyerhaeuser by 3.1% during the 4th quarter. Hexavest Inc. now owns 1,462,554 shares of the real estate investment trust’s stock worth $51,570,000 after purchasing an additional 43,465 shares during the last quarter. Nisa Investment Advisors LLC increased its stake in shares of Weyerhaeuser by 99.5% during the 4th quarter. Nisa Investment Advisors LLC now owns 307,148 shares of the real estate investment trust’s stock worth $10,882,000 after purchasing an additional 153,170 shares during the last quarter. Bristol Advisors LLC purchased a new stake in shares of Weyerhaeuser during the 4th quarter worth approximately $215,000. Sawyer & Company Inc purchased a new stake in shares of Weyerhaeuser during the 4th quarter worth approximately $535,000. Finally, North Star Investment Management Corp. increased its stake in shares of Weyerhaeuser by 3.8% during the 4th quarter. North Star Investment Management Corp. now owns 54,024 shares of the real estate investment trust’s stock worth $1,905,000 after purchasing an additional 1,978 shares during the last quarter. Hedge funds and other institutional investors own 74.77% of the company’s stock.
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Weyerhaeuser Company is a timber, land and forest products company. As of December 31, 2016, the Company owned or controlled 13.1 million acres of timberlands, primarily in the United States, and manages additional timberlands under long-term licenses in Canada. The Company’s segments include Timberlands; Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products.
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