Western Forest Products (TSE:WEF) Stock Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Western Forest Products shares fell below their 200-day moving average, trading as low as C$15.52 versus the C$16.67 average, with the latest price at C$15.74.
• Analysts remain cautious: all five covering analysts rate the stock “Hold,” although their average price target is C$18.40, above the current price.
• The company reported C$1.10 in quarterly EPS on C$239.6 million in revenue, but remains unprofitable, with a negative net margin of 9.64% and negative return on equity of 17.78%.

Western Forest Products Inc. (TSE:WEF - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of C$16.67 and traded as low as C$15.52. Western Forest Products shares last traded at C$15.74, with a volume of 16,226 shares changing hands.

Analysts Set New Price Targets

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

Western Forest Products Stock Performance

The business's fifty day moving average price is C$18.06 and its 200-day moving average price is C$16.67. The stock has a market cap of C$166.18 million, a PE ratio of -1.97, a P/E/G ratio of 0.32 and a beta of -0.06. 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 issued its quarterly earnings data 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 company had revenue of C$239.60 million for the quarter. As a group, equities research analysts forecast that Western Forest Products Inc. will post 0.004992 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Elizabeth Kernaghan sold 1,800 shares of the company's stock in a transaction dated Tuesday, July 14th. The shares were sold at an average price of C$19.05, for a total transaction 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 position. Also, insider Kernwood Limited sold 1,800 shares of the stock in a transaction that occurred on Tuesday, July 14th. The stock was sold at an average price of C$19.05, for a total transaction of C$34,290.00. Following the completion of the transaction, the insider owned 1,889,000 shares in the company, valued at C$35,985,450. The trade was a 0.10% decrease in their ownership of the stock. Company insiders own 0.67% of the company's stock.

Western Forest Products Company Profile

Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets. With operations and employees located primarily on the coast of British Columbia and Washington State, Western is a premier supplier of high-value, specialty forest products to worldwide markets. Western has a lumber capacity of 785 million board feet from five sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities.

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