Weyerhaeuser (NYSE:WY) Sets New 1-Year Low - Should You Sell?

Key Points

• Weyerhaeuser shares fell to a new 52-week low of $21.05, well below their 50-day and 200-day moving averages near $24.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $28.67, implying potential upside from current levels.
• The company reported quarterly earnings of $0.13 per share, exceeding estimates, while revenue declined 8.3% year over year. Weyerhaeuser also pays a $0.21 quarterly dividend, yielding about 4%, though its payout ratio is elevated at 129.23%.

Weyerhaeuser Company (NYSE:WY - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $21.05 and last traded at $21.0250, with a volume of 355918 shares trading hands. The stock had previously closed at $21.22.

Analyst Upgrades and Downgrades

WY has been the subject of a number of research reports. Weiss Ratings upgraded Weyerhaeuser from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, August 3rd. DA Davidson reaffirmed a "buy" rating and set a $31.00 price target on shares of Weyerhaeuser in a research report on Tuesday, June 30th. Wall Street Zen upgraded shares of Weyerhaeuser from a "sell" rating to a "hold" rating in a research note on Sunday, August 2nd. Citigroup dropped their price objective on shares of Weyerhaeuser from $30.00 to $29.00 and set a "buy" rating for the company in a research report on Tuesday, August 4th. Finally, Truist Financial reissued a "hold" rating and issued a $28.00 target price (up from $27.00) on shares of Weyerhaeuser in a research note on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $28.67.

Weyerhaeuser Price Performance

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.82 and a quick ratio of 1.15. The company has a market cap of $15.14 billion, a PE ratio of 32.35, a P/E/G ratio of 2.02 and a beta of 0.87. The company has a 50-day moving average price of $23.85 and a two-hundred day moving average price of $24.01.

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

Weyerhaeuser Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were paid a dividend of $0.21 per share. The ex-dividend date was Friday, September 4th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 4.0%. Weyerhaeuser's dividend payout ratio (DPR) is currently 129.23%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Essential Partners LLC increased its stake in Weyerhaeuser by 120,800.0% during the 1st quarter. Essential Partners LLC now owns 1,209 shares of the real estate investment trust's stock worth $30,000 after buying an additional 1,208 shares during the period. Nvwm LLC boosted its position in Weyerhaeuser by 174.7% in the 2nd quarter. Nvwm LLC now owns 1,258 shares of the real estate investment trust's stock valued at $30,000 after buying an additional 800 shares during the last quarter. Versant Capital Management Inc grew its stake in shares of Weyerhaeuser by 77.6% during the second quarter. Versant Capital Management Inc now owns 1,412 shares of the real estate investment trust's stock valued at $34,000 after acquiring an additional 617 shares in the last quarter. Compass Financial Management LLC acquired a new stake in shares of Weyerhaeuser during the second quarter valued at about $35,000. Finally, Bayban purchased a new stake in shares of Weyerhaeuser during the fourth quarter worth about $41,000. 82.99% of the stock is currently owned by hedge funds and other institutional investors.

Weyerhaeuser Company Profile

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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