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

Key Points

• Western Forest Products shares crossed above their 200-day moving average, reaching C$17.41 before closing at C$17.08, compared with a 200-day average of C$16.11.
• Analysts remain cautious: all five covering analysts rate the stock “Hold”, with an average price target of C$18.40 and individual targets ranging from C$18.00 to C$20.00.
• The company reported C$1.10 in quarterly EPS on C$239.6 million in revenue, but continues to post a negative net margin and return on equity; insiders have also sold shares worth about C$270,980 over the past 90 days.

Western Forest Products Inc. (TSE:WEF - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$16.11 and traded as high as C$17.41. Western Forest Products shares last traded at C$17.08, with a volume of 14,812 shares traded.

Wall Street Analyst Weigh In

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

Western Forest Products Price Performance

The company has a debt-to-equity ratio of 12.63, a quick ratio of 0.73 and a current ratio of 2.44. The firm has a market cap of C$180.33 million, a price-to-earnings ratio of -2.13, a price-to-earnings-growth ratio of 0.32 and a beta of 0.16. The company's fifty day moving average is C$17.92 and its two-hundred day moving average is C$16.11.

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

Insider Activity

In other news, Director Elizabeth Kernaghan sold 1,800 shares of the company's stock in a transaction dated Tuesday, July 14th. The stock was 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 C$35,985,450. This represents a 0.10% decrease in their ownership of the stock. Also, insider Kernwood Limited sold 1,800 shares of the stock in a transaction dated 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 insider owned 1,889,000 shares of the company's stock, valued at approximately C$35,985,450. This trade represents a 0.10% decrease in their position. Insiders sold 14,200 shares of company stock valued at $270,980 in the last ninety days. Company insiders own 0.67% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.