West Fraser Timber (NYSE:WFG) Stock Crosses Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Shares fell below their 200-day moving average: West Fraser Timber traded as low as $66.35 and last changed hands at $66.45, below the $67.23 average.
• Analyst sentiment remains positive overall: The stock carries a “Moderate Buy” consensus rating and an $83.80 average price target, despite some analysts trimming their targets.
• Latest quarterly results missed expectations: West Fraser reported a loss of $1.03 per share versus the $0.84 loss analysts expected, while revenue of $1.36 billion was below the $1.42 billion consensus.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $67.23 and traded as low as $66.35. West Fraser Timber shares last traded at $66.45, with a volume of 92,816 shares trading hands.

Analyst Upgrades and Downgrades

WFG has been the subject of a number of recent analyst reports. Royal Bank Of Canada dropped their price objective on West Fraser Timber from $83.00 to $81.00 and set an "outperform" rating for the company in a report on Friday, October 16th. Wall Street Zen raised West Fraser Timber from a "sell" rating to a "hold" rating in a research note on Saturday, October 31st. Raymond James Financial decreased their price objective on West Fraser Timber from $85.00 to $80.00 and set an "outperform" rating for the company in a research report on Thursday, October 29th. Zacks Research upgraded shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a report on Friday, July 17th. Finally, Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating on shares of West Fraser Timber in a research report on Friday, July 31st. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, West Fraser Timber presently has an average rating of "Moderate Buy" and a consensus price target of $83.80.

West Fraser Timber Price Performance

The company has a 50 day moving average price of $68.18 and a 200 day moving average price of $67.23. The company has a current ratio of 2.29, a quick ratio of 1.07 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $5.20 billion, a P/E ratio of -4.80 and a beta of 1.12.

West Fraser Timber (NYSE:WFG - Get Free Report) last announced its earnings results on Wednesday, October 28th. The company reported ($1.03) EPS for the quarter, missing the consensus estimate of ($0.84) by ($0.19). West Fraser Timber had a negative return on equity of 9.19% and a negative net margin of 20.39%. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.42 billion. On average, equities analysts predict that West Fraser Timber Co. Ltd. will post -4.77 EPS for the current fiscal year.

West Fraser Timber Dividend Announcement

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

Institutional Investors Weigh In On West Fraser Timber

Large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada raised its stake in West Fraser Timber by 10.3% in the first quarter. Royal Bank of Canada now owns 3,450,867 shares of the company's stock valued at $225,306,000 after purchasing an additional 321,102 shares in the last quarter. Donald Smith & CO. Inc. bought a new stake in West Fraser Timber during the second quarter worth $110,334,000. Letko Brosseau & Associates Inc. lifted its position in shares of West Fraser Timber by 1.9% during the 3rd quarter. Letko Brosseau & Associates Inc. now owns 1,445,539 shares of the company's stock worth $100,462,000 after buying an additional 27,583 shares during the last quarter. Manning & Napier Advisors LLC acquired a new stake in West Fraser Timber in the second quarter valued at about $86,416,000. Finally, Atlas FRM LLC bought a new position in shares of West Fraser Timber in the second quarter worth about $50,090,600. Institutional investors and hedge funds own 40.23% of the company's stock.

West Fraser Timber Company Profile

West Fraser Timber Co. Ltd. is an integrated forest products company headquartered in Vancouver, British Columbia. Founded in 1955 as a sawmill in Quesnel, the company has grown into a producer of wood-based building materials and other forest products. Its products include lumber, oriented strand board (OSB), plywood, medium-density fibreboard, laminated veneer lumber, pulp, paper and related products. West Fraser also uses wood residuals to produce items such as wood chips and renewable energy.

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