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

Key Points

• Analysts hold a neutral view: West Fraser Timber has a consensus “Hold” rating from eight analysts, with four buys, three holds and one sell. The average 12-month price target is $83.20 versus a recent share price of $70.21.
• Quarterly results fell short of expectations: The company reported a $0.78 loss per share, missing the $0.70-loss consensus, while revenue of $1.43 billion was below the $1.45 billion estimate. Analysts expect a full-year loss of approximately $3.49 per share.
• West Fraser maintains a modest dividend: The quarterly dividend is $0.32 per share, or $1.28 annualized, representing a yield of about 1.8%; institutional investors own approximately 40.23% of the stock.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report) has been assigned an average rating of "Hold" from the eight ratings firms that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, three have given a hold recommendation and four have given a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $83.20.

A number of research firms have commented on WFG. Weiss Ratings cut West Fraser Timber from a "sell (d)" rating to a "sell (d-)" rating in a research note on Friday, July 31st. Royal Bank Of Canada dropped their target price on shares of West Fraser Timber from $85.00 to $83.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Raymond James Financial cut shares of 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 report on Thursday, April 23rd. TD Securities reissued a "buy" rating on shares of West Fraser Timber in a research report on Friday, July 31st. Finally, Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating on shares of West Fraser Timber in a research report on Friday, July 31st.

West Fraser Timber Price Performance

Shares of WFG stock opened at $70.21 on Thursday. The company has a market cap of $5.50 billion, a P/E ratio of -4.55 and a beta of 1.00. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.06 and a quick ratio of 0.83. The stock's 50-day moving average is $67.94 and its 200 day moving average is $66.79. West Fraser Timber has a 1-year low of $57.34 and a 1-year high of $76.99.

West Fraser Timber (NYSE:WFG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported ($0.78) EPS for the quarter, missing the consensus estimate of ($0.70) by ($0.08). The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.45 billion. West Fraser Timber had a negative return on equity of 10.84% and a negative net margin of 22.98%. Research analysts predict that West Fraser Timber will post -3.49 earnings per share for the current fiscal year.

West Fraser Timber Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Thursday, June 25th were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.8%. The ex-dividend date was Thursday, June 25th. West Fraser Timber's payout ratio is presently -8.29%.

Hedge Funds Weigh In On West Fraser Timber

Institutional investors have recently modified their holdings of the stock. Donald Smith & CO. Inc. acquired a new position in shares of West Fraser Timber in the fourth quarter worth about $91,014,000. Price T Rowe Associates Inc. MD raised its holdings in West Fraser Timber by 28.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,613,139 shares of the company's stock worth $220,799,000 after purchasing an additional 802,477 shares during the period. Norges Bank acquired a new stake in West Fraser Timber in the fourth quarter valued at approximately $39,660,000. T. Rowe Price Investment Management Inc. increased its position in shares of West Fraser Timber by 500.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 530,573 shares of the company's stock valued at $32,424,000 after buying an additional 442,138 shares in the last quarter. Finally, Royal Bank of Canada raised its stake in shares of West Fraser Timber by 10.3% during the 1st quarter. Royal Bank of Canada now owns 3,450,867 shares of the company's stock worth $225,306,000 after buying an additional 321,102 shares during the period. Hedge funds and other institutional investors own 40.23% of the company's stock.

West Fraser Timber Company Profile

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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