Weyerhaeuser (NYSE:WY) Hits New 52-Week Low - Here's What Happened

Key Points

• Weyerhaeuser shares fell to a new 52-week low of $19.61, trading about 1.4% lower and well below their 50-day and 200-day moving averages.
• Analysts remain moderately bullish overall, with a consensus “Moderate Buy” rating and an average price target of $28.67, although JPMorgan and Citigroup recently lowered their targets.
• The company beat quarterly earnings expectations with $0.13 in EPS and $1.87 billion in revenue, but revenue declined 8.3% year over year. Weyerhaeuser also maintains a $0.21 quarterly dividend, yielding approximately 4.3%.

Shares of Weyerhaeuser Company (NYSE:WY - Get Free Report) reached a new 52-week low during mid-day trading on Monday. The stock traded as low as $19.61 and last traded at $19.7760, with a volume of 379574 shares changing hands. The stock had previously closed at $20.01.

Analyst Ratings Changes

WY has been the topic of a number of research analyst reports. JPMorgan Chase & Co. cut their price target on shares of Weyerhaeuser from $31.00 to $28.00 and set an "overweight" rating on the stock in a research report on Thursday, September 3rd. Truist Financial reiterated a "hold" rating and issued a $28.00 target price (up from $27.00) on shares of Weyerhaeuser in a report on Monday, August 3rd. Weiss Ratings raised Weyerhaeuser from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, August 3rd. Citigroup cut their price target on Weyerhaeuser from $30.00 to $29.00 and set a "buy" rating on the stock in a report on Tuesday, August 4th. Finally, Wall Street Zen raised shares of Weyerhaeuser from a "sell" rating to a "hold" rating in a research report on Sunday, August 2nd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $28.67.

Weyerhaeuser Trading Down 1.4%

The business has a fifty day moving average of $23.52 and a 200-day moving average of $23.88. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.15 and a current ratio of 1.82. The company has a market capitalization of $14.23 billion, a P/E ratio of 30.44, a PEG ratio of 1.90 and a beta of 0.87.

Weyerhaeuser (NYSE:WY - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.13 EPS for the quarter, beating analysts' consensus estimates of $0.08 by $0.05. Weyerhaeuser had a net margin of 6.89% and a return on equity of 1.49%. The business had revenue of $1.87 billion during the quarter, compared to analyst estimates of $1.85 billion. During the same quarter in the previous year, the business posted $0.12 EPS. Weyerhaeuser's quarterly revenue was down 8.3% on a year-over-year basis. Analysts anticipate that Weyerhaeuser Company will post 0.33 earnings per share for the current fiscal year.

Weyerhaeuser Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were given a dividend of $0.21 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.84 annualized dividend and a dividend yield of 4.3%. Weyerhaeuser's payout ratio is presently 129.23%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of WY. First Eagle Investment Management LLC raised its position in Weyerhaeuser by 10.6% in the 2nd quarter. First Eagle Investment Management LLC now owns 51,179,282 shares of the real estate investment trust's stock valued at $1,225,232,000 after buying an additional 4,885,818 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of Weyerhaeuser by 14.3% in the second quarter. Wellington Management Group LLP now owns 43,574,118 shares of the real estate investment trust's stock valued at $1,043,164,000 after purchasing an additional 5,437,685 shares during the last quarter. State Street Corp raised its holdings in shares of Weyerhaeuser by 3.3% in the second quarter. State Street Corp now owns 34,298,957 shares of the real estate investment trust's stock valued at $821,117,000 after purchasing an additional 1,106,553 shares during the last quarter. Norges Bank bought a new position in shares of Weyerhaeuser during the fourth quarter valued at about $549,531,000. Finally, Geode Capital Management LLC lifted its position in shares of Weyerhaeuser by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 20,299,110 shares of the real estate investment trust's stock valued at $479,155,000 after purchasing an additional 225,227 shares in the last quarter. Institutional investors own 82.99% of the company's stock.

About Weyerhaeuser

Weyerhaeuser NYSE: WY is a timberland owner and forest products company. Founded in 1900, the company owns or manages millions of acres of timberlands in the United States and Canada and sustainably grows, harvests and replenishes trees for use in construction and other applications.

Weyerhaeuser's products include lumber, oriented strand board, engineered wood products, structural panels and other building materials used in residential and commercial construction. The company also generates income from timber, logs, real estate and strategically managed natural-resource properties.

In addition to its forest products operations, Weyerhaeuser provides natural climate solutions, including carbon-storage opportunities associated with its timberlands.

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