Citigroup Cuts Weyerhaeuser (NYSE:WY) Price Target to $21.00

Key Points

• Citigroup lowered Weyerhaeuser’s price target from $29 to $21 while maintaining a “buy” rating, implying 13.15% upside from the stock’s previous close.
• Despite the cut, analyst sentiment remains positive: Weyerhaeuser has a “Moderate Buy” consensus rating and an average price target of $27.78.
• Shares rose 0.5% to $18.56, near their 52-week low. The company recently exceeded quarterly EPS estimates, though revenue declined 8.3% year over year.

Weyerhaeuser (NYSE:WY - Get Free Report) had its price objective cut by investment analysts at Citigroup from $29.00 to $21.00 in a research report issued on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the real estate investment trust's stock. Citigroup's target price suggests a potential upside of 13.15% from the stock's previous close.

Several other brokerages have also commented on WY. Weiss Ratings lowered Weyerhaeuser from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday. Raymond James Financial raised Weyerhaeuser from an "outperform" rating to a "strong-buy" rating and set a $30.00 target price on the stock in a research report on Friday, July 10th. DA Davidson reiterated a "buy" rating and issued a $31.00 price target on shares of Weyerhaeuser in a research note on Tuesday, June 30th. JPMorgan Chase & Co. lowered their price target on Weyerhaeuser from $31.00 to $28.00 and set an "overweight" rating for the company in a report on Thursday, September 3rd. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $30.00 price target on shares of Weyerhaeuser in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $27.78.

Weyerhaeuser Stock Up 0.5%

Weyerhaeuser stock traded up $0.09 during trading hours on Monday, reaching $18.56. The stock had a trading volume of 4,211,730 shares, compared to its average volume of 5,973,584. The company has a market cap of $13.38 billion, a price-to-earnings ratio of 28.59, a PEG ratio of 1.83 and a beta of 0.92. The business's 50 day moving average price is $23.05 and its 200-day moving average price is $23.72. Weyerhaeuser has a 52 week low of $18.25 and a 52 week high of $27.75. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.82 and a quick ratio of 1.15.

Weyerhaeuser (NYSE:WY - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.08 by $0.05. Weyerhaeuser had a net margin of 6.89% and a return on equity of 1.49%. The firm had revenue of $1.87 billion for the quarter, compared to the consensus estimate of $1.85 billion. During the same quarter in the previous year, the firm earned $0.12 EPS. The company's quarterly revenue was down 8.3% compared to the same quarter last year. Sell-side analysts anticipate that Weyerhaeuser will post 0.32 EPS for the current year.

Hedge Funds Weigh In On Weyerhaeuser

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Essential Partners LLC raised its stake in shares of Weyerhaeuser by 120,800.0% in the first quarter. Essential Partners LLC now owns 1,209 shares of the real estate investment trust's stock worth $30,000 after purchasing an additional 1,208 shares during the last quarter. Nvwm LLC increased its holdings in Weyerhaeuser by 174.7% in the 2nd quarter. Nvwm LLC now owns 1,258 shares of the real estate investment trust's stock worth $30,000 after buying an additional 800 shares during the period. Versant Capital Management Inc increased its holdings in Weyerhaeuser by 77.6% in the 2nd quarter. Versant Capital Management Inc now owns 1,412 shares of the real estate investment trust's stock worth $34,000 after buying an additional 617 shares during the period. Compass Financial Management LLC purchased a new position in Weyerhaeuser during the 2nd quarter worth approximately $35,000. Finally, Bayban purchased a new position in Weyerhaeuser during the 4th quarter worth approximately $41,000. Hedge funds and other institutional investors own 82.99% of the company's stock.

About Weyerhaeuser

Weyerhaeuser NYSE: WY is one of the world's largest private owners of timberlands and a major producer of forest products. The company owns and manages timberlands in the United States and operates manufacturing facilities in the United States and Canada, serving residential, commercial and industrial markets.

Its principal products include lumber, structural panels, engineered wood products and other materials used in homebuilding and construction. Weyerhaeuser also manages its timberlands for sustainable wood production and generates revenue from real estate, energy and natural-resource activities associated with those properties.

Founded in 1900, Weyerhaeuser has developed from a regional timber company into an integrated forest-products business.

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