Weyerhaeuser (NYSE:WY) Sets New 52-Week Low - Should You Sell?

Key Points

• Weyerhaeuser shares fell to a new 52-week low of $18.31, well below their 50-day and 200-day moving averages of $23.05 and $23.72, respectively.
• Analysts remain moderately bullish, with a consensus “Moderate Buy” rating and an average price target of $28.67, despite mixed recent rating changes.
• The company beat quarterly earnings and revenue expectations, but revenue declined 8.3% year over year. Weyerhaeuser also pays a $0.21 quarterly dividend, equivalent to a 4.5% yield, although its 129.23% payout ratio is elevated.

Shares of Weyerhaeuser Company (NYSE:WY - Get Free Report) reached a new 52-week low during trading on Monday. The stock traded as low as $18.31 and last traded at $18.3380, with a volume of 378759 shares changing hands. The stock had previously closed at $18.47.

Analyst Upgrades and Downgrades

Several brokerages have commented on WY. Wall Street Zen upgraded shares of Weyerhaeuser from a "sell" rating to a "hold" rating in a research note on Sunday, August 2nd. Raymond James Financial raised Weyerhaeuser from an "outperform" rating to a "strong-buy" rating and set a $30.00 target price for the company in a research note on Friday, July 10th. Truist Financial reiterated a "hold" rating and issued a $28.00 price objective (up from $27.00) on shares of Weyerhaeuser in a report on Monday, August 3rd. Citigroup lowered their price target on Weyerhaeuser from $30.00 to $29.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Finally, Weiss Ratings cut Weyerhaeuser from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday. One equities 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 company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $28.67.

Weyerhaeuser Stock Up 0.8%

The business has a 50-day moving average of $23.05 and a 200-day moving average of $23.72. The stock has a market capitalization of $13.42 billion, a price-to-earnings ratio of 28.62, a P/E/G ratio of 1.83 and a beta of 0.92. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.15 and a current ratio of 1.82.

Weyerhaeuser (NYSE:WY - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.13 EPS for the quarter, topping the consensus estimate of $0.08 by $0.05. Weyerhaeuser had a net margin of 6.89% and a return on equity of 1.49%. The firm had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.85 billion. During the same period in the prior year, the business posted $0.12 EPS. The business's revenue for the quarter was down 8.3% compared to the same quarter last year. On average, sell-side analysts expect that Weyerhaeuser Company will post 0.32 EPS for the current year.

Weyerhaeuser Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were issued 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 yield of 4.5%. Weyerhaeuser's dividend payout ratio is 129.23%.

Hedge Funds Weigh In On Weyerhaeuser

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Essential Partners LLC lifted its stake in Weyerhaeuser by 120,800.0% in the first quarter. Essential Partners LLC now owns 1,209 shares of the real estate investment trust's stock worth $30,000 after acquiring an additional 1,208 shares during the last quarter. Nvwm LLC boosted its stake in Weyerhaeuser by 174.7% in the second quarter. Nvwm LLC now owns 1,258 shares of the real estate investment trust's stock valued at $30,000 after acquiring an additional 800 shares in the last quarter. Versant Capital Management Inc boosted its stake in Weyerhaeuser by 77.6% in 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 purchased a new position in shares of Weyerhaeuser during the second quarter worth about $35,000. Finally, Bayban purchased a new position in shares of Weyerhaeuser during the fourth quarter worth about $41,000. Hedge funds and other institutional investors own 82.99% of the company's stock.

Weyerhaeuser Company Profile

Weyerhaeuser NYSE: WY is one of the world's largest private owners of timberlands and a major producer of forest products. The company owns and manages timberlands in the United States and operates manufacturing facilities in the United States and Canada, serving residential, commercial and industrial markets.

Its principal products include lumber, structural panels, engineered wood products and other materials used in homebuilding and construction. Weyerhaeuser also manages its timberlands for sustainable wood production and generates revenue from real estate, energy and natural-resource activities associated with those properties.

Founded in 1900, Weyerhaeuser has developed from a regional timber company into an integrated forest-products business.

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.