West Fraser Timber (NYSE:WFG) Share Price Crosses Below 200-Day Moving Average - Here's What Happened

Key Points

• West Fraser Timber shares fell below their 200-day moving average, trading as low as $65.76 before last changing hands at $67.09, compared with the $67.31 average.
• The company reported a quarterly loss of $1.03 per share, missing the $0.84 consensus estimate, while revenue of $1.36 billion also came in below expectations.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and an average price target of $83.80, despite mixed individual rating changes.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report)'s share price passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $67.31 and traded as low as $65.76. West Fraser Timber shares last traded at $67.09, with a volume of 225,876 shares changing hands.

Analysts Set New Price Targets

Several research firms have weighed in on WFG. Royal Bank Of Canada lowered their price target on shares of West Fraser Timber from $83.00 to $81.00 and set an "outperform" rating for the company in a research note on Friday, October 16th. Weiss Ratings reiterated a "sell (d-)" rating on shares of West Fraser Timber in a report on Thursday. Zacks Research raised West Fraser Timber from a "strong sell" rating to a "hold" rating in a research note on Friday, July 17th. Wall Street Zen upgraded West Fraser Timber from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Cantor Fitzgerald upgraded West Fraser Timber to a "buy" rating in a research report on Thursday. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $83.80.

West Fraser Timber Price Performance

The firm has a market cap of $5.25 billion, a PE ratio of -4.85 and a beta of 1.06. The firm has a 50-day simple moving average of $68.32 and a 200 day simple moving average of $67.31. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.06 and a quick ratio of 0.83.

West Fraser Timber (NYSE:WFG - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported ($1.03) earnings per share for the quarter, missing analysts' consensus estimates of ($0.84) by ($0.19). West Fraser Timber had a negative net margin of 20.39% and a negative return on equity of 9.10%. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.42 billion. As a group, equities analysts expect that West Fraser Timber Co. Ltd. will post -3.44 EPS for the current year.

West Fraser Timber Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, October 19th. Investors of record on Tuesday, September 29th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Tuesday, September 29th. West Fraser Timber's payout ratio is presently -9.25%.

Hedge Funds Weigh In On West Fraser Timber

Several hedge funds and other institutional investors have recently bought and sold shares of WFG. Parallel Advisors LLC grew its position in West Fraser Timber by 72.2% during the first quarter. Parallel Advisors LLC now owns 439 shares of the company's stock valued at $29,000 after buying an additional 184 shares during the period. EFG International AG bought a new position in West Fraser Timber in the second quarter worth approximately $34,000. Physician Wealth Advisors Inc. raised its position in West Fraser Timber by 177.0% in the first quarter. Physician Wealth Advisors Inc. now owns 579 shares of the company's stock worth $38,000 after acquiring an additional 370 shares during the period. Integrated Wealth Concepts LLC purchased a new position in shares of West Fraser Timber during the 2nd quarter worth $40,000. Finally, Farther Finance Advisors LLC boosted its stake in shares of West Fraser Timber by 4,072.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 751 shares of the company's stock worth $52,000 after acquiring an additional 733 shares during the last quarter. Institutional investors own 40.23% of the company's stock.

About West Fraser Timber

West Fraser Timber Co Ltd. is a diversified wood products company that manufactures and sells building materials for residential, commercial and industrial applications. Its principal products include lumber, oriented strand board, laminated veneer lumber and other engineered wood products used in construction, remodeling and manufacturing.

The company operates wood product manufacturing facilities and manages timber resources across Canada and the United States, with a significant presence in Western Canada and the U.S.

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