Short Interest in West Fraser Timber Co. Ltd. (NYSE:WFG) Grows By 69,900.0%

Key Points

• Short interest in West Fraser Timber Co. Ltd. rose dramatically by 69,900.0% in July, reaching a total of 1,470,000 shares, indicating heightened investor concern.
• The company reported a loss of ($0.38) EPS for the last quarter, missing the consensus estimate of a profit, and had revenues of $1.53 billion against expectations of $1.61 billion.
• West Fraser Timber has a dividend yield of 1.8%, with a recent quarterly dividend of $0.32, though its payout ratio stands at -73.14%, indicating potential sustainability concerns.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report) was the target of a significant growth in short interest in the month of July. As of July 15th, there was short interest totaling 1,470,000 shares, agrowthof69,900.0% from the June 30th total of 2,100 shares. Currently,2.8% of the shares of the company are short sold. Based on an average daily volume of 202,000 shares, the short-interest ratio is currently 7.3 days. Based on an average daily volume of 202,000 shares, the short-interest ratio is currently 7.3 days. Currently,2.8% of the shares of the company are short sold.

West Fraser Timber Price Performance

NYSE WFG traded up $1.51 during trading on Tuesday, reaching $71.62. 87,920 shares of the company traded hands, compared to its average volume of 203,711. The company has a market cap of $5.49 billion, a price-to-earnings ratio of -40.92 and a beta of 1.15. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.61 and a current ratio of 2.89. West Fraser Timber has a 1-year low of $68.63 and a 1-year high of $102.40. The stock's 50 day moving average price is $74.09 and its two-hundred day moving average price is $76.67.

West Fraser Timber (NYSE:WFG - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported ($0.38) EPS for the quarter, missing the consensus estimate of $0.36 by ($0.74). The business had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.61 billion. West Fraser Timber had a negative return on equity of 0.85% and a negative net margin of 2.18%. As a group, analysts anticipate that West Fraser Timber will post 4.45 EPS for the current year.

West Fraser Timber Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, July 14th. Stockholders of record on Thursday, June 26th were issued a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Thursday, June 26th. West Fraser Timber's payout ratio is presently -73.14%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on WFG. Royal Bank Of Canada decreased their target price on West Fraser Timber from $117.00 to $99.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 22nd. TD Securities decreased their target price on West Fraser Timber from $98.00 to $96.00 and set a "buy" rating on the stock in a research report on Friday, July 25th. Wall Street Zen downgraded West Fraser Timber from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. Finally, Raymond James Financial reaffirmed a "market perform" rating on shares of West Fraser Timber in a report on Monday, July 21st. One analyst has rated the stock with a sell rating, one has given a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, West Fraser Timber has a consensus rating of "Moderate Buy" and an average price target of $100.00.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. FIL Ltd raised its position in West Fraser Timber by 35.5% in the 4th quarter. FIL Ltd now owns 5,041,873 shares of the company's stock worth $436,861,000 after purchasing an additional 1,319,843 shares during the last quarter. Norges Bank bought a new position in West Fraser Timber in the 4th quarter worth approximately $81,605,000. Price T Rowe Associates Inc. MD raised its position in West Fraser Timber by 56.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,162,049 shares of the company's stock worth $187,126,000 after purchasing an additional 780,313 shares during the last quarter. Deutsche Bank AG raised its position in West Fraser Timber by 202.1% in the 1st quarter. Deutsche Bank AG now owns 395,101 shares of the company's stock worth $30,399,000 after purchasing an additional 264,322 shares during the last quarter. Finally, Lightrock Netherlands B.V. raised its position in West Fraser Timber by 1,075.2% in the 2nd quarter. Lightrock Netherlands B.V. now owns 259,303 shares of the company's stock worth $19,007,000 after purchasing an additional 237,239 shares during the last quarter. 40.23% of the stock is owned by institutional investors and hedge funds.

West Fraser Timber Company Profile

West Fraser Timber Co Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards.