Clean Energy Transition LLP Makes New Investment in Weyerhaeuser Company (NYSE:WY)

Key Points

• Clean Energy Transition LLP has acquired a $55.43 million stake in Weyerhaeuser Company, holding about 6.9% of the firm, which makes it the firm's sixth largest holding.
• Weyerhaeuser recently declared a quarterly dividend of $0.21 per share, with an annualized yield of 3.3%, despite a high payout ratio of 221.05%.
• The company's recent earnings report indicated a net margin of 3.97% and revenue of $1.88 billion, falling short of analysts' expectations of $1.94 billion.

Clean Energy Transition LLP purchased a new stake in shares of Weyerhaeuser Company (NYSE:WY - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 1,893,056 shares of the real estate investment trust's stock, valued at approximately $55,429,000. Weyerhaeuser accounts for 6.9% of Clean Energy Transition LLP's investment portfolio, making the stock its 6th largest holding. Clean Energy Transition LLP owned about 0.26% of Weyerhaeuser at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the business. South Plains Financial Inc. purchased a new position in Weyerhaeuser in the 4th quarter worth approximately $25,000. Fourth Dimension Wealth LLC purchased a new position in Weyerhaeuser in the 4th quarter worth approximately $27,000. Barnes Dennig Private Wealth Management LLC purchased a new position in Weyerhaeuser in the 1st quarter worth approximately $31,000. Costello Asset Management INC purchased a new position in Weyerhaeuser in the 1st quarter worth approximately $32,000. Finally, Marshall Investment Management LLC purchased a new stake in Weyerhaeuser during the 1st quarter valued at $36,000. Hedge funds and other institutional investors own 82.99% of the company's stock.

Weyerhaeuser Trading Up 1.3%

NYSE WY traded up $0.34 during trading hours on Tuesday, hitting $25.62. 3,432,351 shares of the company were exchanged, compared to its average volume of 4,733,142. The stock has a 50-day moving average price of $26.07 and a 200 day moving average price of $27.29. The company has a quick ratio of 0.68, a current ratio of 1.04 and a debt-to-equity ratio of 0.45. Weyerhaeuser Company has a 52 week low of $24.10 and a 52 week high of $34.03. The stock has a market cap of $18.49 billion, a PE ratio of 67.42, a price-to-earnings-growth ratio of 73.25 and a beta of 1.08.

Weyerhaeuser (NYSE:WY - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The real estate investment trust reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.02. Weyerhaeuser had a return on equity of 2.95% and a net margin of 3.97%. The company had revenue of $1.88 billion for the quarter, compared to analysts' expectations of $1.94 billion. During the same period in the previous year, the firm posted $0.21 earnings per share. The firm's revenue for the quarter was down 2.8% on a year-over-year basis. Analysts forecast that Weyerhaeuser Company will post 0.78 earnings per share for the current fiscal year.

Weyerhaeuser Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Shareholders of record on Friday, August 29th will be paid a $0.21 dividend. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.84 annualized dividend and a yield of 3.3%. Weyerhaeuser's dividend payout ratio (DPR) is presently 221.05%.

Weyerhaeuser announced that its Board of Directors has initiated a stock buyback program on Thursday, May 8th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the real estate investment trust to reacquire up to 5.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. JPMorgan Chase & Co. decreased their target price on shares of Weyerhaeuser from $32.00 to $30.00 and set an "overweight" rating for the company in a research note on Tuesday, July 1st. Wall Street Zen lowered Weyerhaeuser from a "hold" rating to a "sell" rating in a research note on Sunday, August 3rd. Citigroup dropped their target price on shares of Weyerhaeuser from $35.00 to $31.00 and set a "buy" rating for the company in a report on Tuesday, June 3rd. CIBC dropped their target price on shares of Weyerhaeuser from $35.00 to $32.00 and set an "outperformer" rating for the company in a report on Tuesday, April 22nd. Finally, The Goldman Sachs Group downgraded shares of Weyerhaeuser from a "strong-buy" rating to a "strong sell" rating in a report on Friday, May 23rd. Two research analysts have rated the stock with a sell rating, one has given a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Weyerhaeuser has an average rating of "Moderate Buy" and a consensus target price of $32.88.

Weyerhaeuser Company Profile

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards.