NewGen Asset Management Ltd Invests $6.53 Million in West Fraser Timber Co. Ltd. $WFG

Key Points

• NewGen Asset Management initiated a new stake in West Fraser Timber during Q1, buying 100,000 shares worth about $6.53 million. The position now represents about 2.5% of NewGen’s portfolio and is its 10th largest holding.
• Institutional ownership in West Fraser Timber remains significant, with several firms recently adding to or starting positions; overall, institutions own about 40.23% of the stock.
• West Fraser Timber reported a quarterly EPS loss of $2.40, wider than analysts expected, even though revenue slightly topped estimates. Analysts are mixed on the stock, with an average rating of Hold and an average price target of $83.60.

NewGen Asset Management Ltd bought a new position in West Fraser Timber Co. Ltd. (NYSE:WFG - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 100,000 shares of the company's stock, valued at approximately $6,529,000. West Fraser Timber accounts for about 2.5% of NewGen Asset Management Ltd's holdings, making the stock its 10th biggest position. NewGen Asset Management Ltd owned 0.13% of West Fraser Timber as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Intact Investment Management Inc. boosted its holdings in West Fraser Timber by 820.9% in the fourth quarter. Intact Investment Management Inc. now owns 94,850 shares of the company's stock valued at $5,803,000 after acquiring an additional 84,550 shares in the last quarter. Lightrock Netherlands B.V. raised its holdings in West Fraser Timber by 16.1% in the 4th quarter. Lightrock Netherlands B.V. now owns 320,303 shares of the company's stock worth $19,574,000 after purchasing an additional 44,500 shares in the last quarter. Hudson Bay Capital Management LP bought a new position in West Fraser Timber in the 3rd quarter worth $952,000. Norges Bank purchased a new stake in shares of West Fraser Timber in the 4th quarter worth about $39,660,000. Finally, Pictet Asset Management Holding SA lifted its position in shares of West Fraser Timber by 2.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 867,974 shares of the company's stock worth $56,511,000 after purchasing an additional 21,224 shares during the period. 40.23% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

WFG has been the topic of several research analyst reports. TD Securities reiterated a "buy" rating and set a $86.00 price target on shares of West Fraser Timber in a research report on Friday, May 1st. TD Cowen lowered their price objective on shares of West Fraser Timber from $88.00 to $86.00 and set a "buy" rating for the company in a report on Friday, May 1st. Fraser Mackenzie cut their price objective on West Fraser Timber from $88.00 to $86.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Raymond James Financial downgraded West Fraser Timber from an "outperform" rating to a "market perform" rating and reduced their target price for the stock from $85.00 to $75.00 in a report on Thursday, April 23rd. Finally, Weiss Ratings restated a "sell (d)" rating on shares of West Fraser Timber in a research note on Friday. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, West Fraser Timber presently has an average rating of "Hold" and an average price target of $83.60.

West Fraser Timber Trading Down 3.2%

Shares of NYSE:WFG opened at $68.13 on Tuesday. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.84 and a quick ratio of 0.66. West Fraser Timber Co. Ltd. has a 1 year low of $57.34 and a 1 year high of $76.99. The company has a market cap of $5.33 billion, a P/E ratio of -4.53 and a beta of 1.00. The stock's fifty day moving average price is $66.70 and its 200-day moving average price is $66.59.

West Fraser Timber (NYSE:WFG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported ($2.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.23) by ($1.17). The company had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.32 billion. West Fraser Timber had a negative return on equity of 9.67% and a negative net margin of 21.86%. Sell-side analysts expect that West Fraser Timber Co. Ltd. will post -3.97 earnings per share for the current year.

West Fraser Timber Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Investors of record on Thursday, June 25th were given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Thursday, June 25th. West Fraser Timber's dividend payout ratio is -8.51%.

West Fraser Timber Company Profile

West Fraser Timber Co Ltd. NYSE: WFG is a leading North American diversified wood products company headquartered in Vancouver, British Columbia. The company operates a broad portfolio of manufacturing facilities that produce lumber, engineered wood products such as laminated veneer lumber (LVL), oriented strand board (OSB) and plywood, as well as medium density fibreboard (MDF), particleboard, pulp and paper. West Fraser's integrated production model spans harvesting, milling and finishing, allowing it to serve a wide range of residential, commercial and industrial construction markets.

Founded in 1955 as West Fraser Mills, the company has grown through both organic investment and strategic acquisitions to become one of the largest lumber producers in the world.

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