West Fraser Timber Co. Ltd. (NYSE:WFG) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts' consensus: West Fraser has an average rating of "Hold" from six analysts (1 sell, 3 hold, 2 buy) with an average 1‑year price target of $81.33.
• Recent performance and outlook: The stock trades near $66 (50/200‑day MAs ~$65), has a market cap of $5.02B and a negative P/E (-5.42); last quarter EPS was -$2.42 (beats estimate) with revenue slightly below expectations and analysts forecast -2.5 EPS for the fiscal year.
• Dividends and ownership: West Fraser paid a $0.32 quarterly dividend (annualized $1.28, ~1.9% yield) despite a negative payout ratio, and institutional investors hold about 40.23% of the shares.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report) has been assigned an average rating of "Hold" from the six analysts that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $81.3333.

Several research analysts have commented on WFG shares. Zacks Research upgraded shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 24th. Weiss Ratings reiterated a "sell (d)" rating on shares of West Fraser Timber in a research note on Monday, April 20th. Raymond James Financial downgraded West Fraser Timber from an "outperform" rating to a "market perform" rating and decreased their price target for the stock from $85.00 to $75.00 in a research note on Thursday, April 23rd. Finally, Royal Bank Of Canada set a $81.00 price objective on shares of West Fraser Timber in a research note on Thursday, April 16th.

West Fraser Timber Stock Performance

Shares of WFG opened at $65.98 on Tuesday. The firm's 50 day moving average is $65.32 and its 200-day moving average is $64.84. The stock has a market capitalization of $5.02 billion, a P/E ratio of -5.42 and a beta of 1.09. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.13 and a quick ratio of 0.86. West Fraser Timber has a 12-month low of $57.34 and a 12-month high of $78.55.

West Fraser Timber (NYSE:WFG - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The company reported ($2.42) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.71) by $0.29. West Fraser Timber had a negative net margin of 17.15% and a negative return on equity of 5.69%. The company had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.18 billion. Equities research analysts anticipate that West Fraser Timber will post -2.5 EPS for the current fiscal year.

West Fraser Timber Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Friday, March 13th were paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Friday, March 13th. West Fraser Timber's payout ratio is presently -10.51%.

Hedge Funds Weigh In On West Fraser Timber

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its holdings in shares of West Fraser Timber by 3.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 230,878 shares of the company's stock worth $17,764,000 after purchasing an additional 6,640 shares in the last quarter. Cetera Investment Advisers increased its position in shares of West Fraser Timber by 9.0% during the 2nd quarter. Cetera Investment Advisers now owns 7,800 shares of the company's stock worth $571,000 after purchasing an additional 641 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in shares of West Fraser Timber during the 2nd quarter worth about $5,248,000. Invesco Ltd. grew its holdings in West Fraser Timber by 2.2% during the 2nd quarter. Invesco Ltd. now owns 114,850 shares of the company's stock worth $8,419,000 after acquiring an additional 2,419 shares during the last quarter. Finally, Baird Financial Group Inc. grew its holdings in West Fraser Timber by 2.1% during the 2nd quarter. Baird Financial Group Inc. now owns 23,919 shares of the company's stock worth $1,753,000 after acquiring an additional 500 shares during the last quarter. Institutional investors own 40.23% of the company's stock.

About West Fraser Timber

West Fraser Timber Co Ltd. NYSE: WFG is a leading North American diversified wood products company headquartered in Vancouver, British Columbia. The company operates a broad portfolio of manufacturing facilities that produce lumber, engineered wood products such as laminated veneer lumber (LVL), oriented strand board (OSB) and plywood, as well as medium density fibreboard (MDF), particleboard, pulp and paper. West Fraser's integrated production model spans harvesting, milling and finishing, allowing it to serve a wide range of residential, commercial and industrial construction markets.

Founded in 1955 as West Fraser Mills, the company has grown through both organic investment and strategic acquisitions to become one of the largest lumber producers in the world.

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