Western Forest Products (TSE:WEF) Shares Pass Above 200-Day Moving Average - Time to Sell?

Key Points

• Western Forest Products shares rose above their 200-day moving average of C$16.00, reaching C$17.28 before closing at C$16.79, though the stock was down 2.3% and below its 50-day average of C$18.01.
• Analysts remain cautious: all five covering analysts rate the stock “Hold,” with a consensus price target of C$18.40. Recent target increases ranged from C$18.00 to C$20.00.
• The company reported C$1.10 in quarterly EPS and C$239.6 million in revenue, but posted a negative 9.64% net margin and negative 17.78% return on equity; insiders have also sold 14,200 shares worth about C$270,980 over the past 90 days.

Western Forest Products Inc. (TSE:WEF - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$16.00 and traded as high as C$17.28. Western Forest Products shares last traded at C$16.79, with a volume of 27,973 shares traded.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on WEF shares. Raymond James Financial upped their price target on Western Forest Products from C$12.50 to C$20.00 and gave the company a "market perform" rating in a research report on Monday, July 27th. TD upped their target price on Western Forest Products from C$19.00 to C$20.00 and gave the company a "hold" rating in a report on Friday, August 14th. Finally, Royal Bank Of Canada raised their price target on shares of Western Forest Products from C$16.00 to C$18.00 and gave the stock a "sector perform" rating in a report on Friday, August 14th. Five analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of C$18.40.

Western Forest Products Trading Down 2.3%

The company has a 50 day moving average of C$18.01 and a 200 day moving average of C$16.00. The firm has a market cap of C$177.27 million, a P/E ratio of -2.10, a PEG ratio of 0.32 and a beta of 0.23. The company has a debt-to-equity ratio of 12.63, a quick ratio of 0.73 and a current ratio of 2.44.

Western Forest Products (TSE:WEF - Get Free Report) last posted its earnings results on Wednesday, August 12th. The company reported C$1.10 earnings per share (EPS) for the quarter. The firm had revenue of C$239.60 million during the quarter. Western Forest Products had a negative net margin of 9.64% and a negative return on equity of 17.78%. Analysts predict that Western Forest Products Inc. will post 0.004992 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Elizabeth Kernaghan sold 1,800 shares of Western Forest Products stock in a transaction on Tuesday, July 14th. The shares were sold at an average price of C$19.05, for a total value of C$34,290.00. Following the completion of the sale, the director owned 1,889,000 shares of the company's stock, valued at approximately C$35,985,450. The trade was a 0.10% decrease in their position. Also, insider Kernwood Limited sold 2,700 shares of the firm's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of C$19.00, for a total value of C$51,300.00. Following the transaction, the insider owned 1,900,800 shares in the company, valued at approximately C$36,115,200. This trade represents a 0.14% decrease in their ownership of the stock. Insiders have sold a total of 14,200 shares of company stock worth $270,980 in the last 90 days. 0.67% of the stock is owned by insiders.

About Western Forest Products

Western Forest Products Inc is a Canada-based softwood forest products company. The company's principal business activities include timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value-added lumber remanufacturing. Its operating business segment comprised of Timber harvesting, Log sales, and Lumber manufacturing and sales. The firm purchases and harvests logs which are then manufactured into lumber products at its sawmills, or sold. Canada and the United States, represent the company's largest markets and contribute the vast majority of its total revenue.

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