West Fraser Timber (NYSE:WFG) Reaches New 1-Year Low - Here's Why

Key Points

• West Fraser Timber (NYSE:WFG) reached a new 52-week low at $66.08, down from a closing price of $67.14, with a trading volume of around 241,793 shares.
• Research firms have mixed ratings on the stock, with Weiss Ratings maintaining a sell rating, while Zacks upgraded it to a hold rating; analysts currently have a consensus price target of $96.00.
• The company reported a significant earnings miss with an EPS of ($0.38), falling short of the expected $0.36, and has a negative net margin of 2.18% for the last quarter.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report) reached a new 52-week low during trading on Friday . The stock traded as low as $66.13 and last traded at $66.08, with a volume of 241793 shares changing hands. The stock had previously closed at $67.14.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on WFG. Weiss Ratings reaffirmed a "sell (d)" rating on shares of West Fraser Timber in a report on Wednesday, October 8th. Raymond James Financial cut their price objective on shares of West Fraser Timber from $75.00 to $70.00 and set a "market perform" rating on the stock in a research report on Wednesday. Zacks Research upgraded shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a research report on Friday, September 26th. TD Securities cut their price objective on shares of 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. Finally, Wall Street Zen downgraded shares of West Fraser Timber from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $96.00.

West Fraser Timber Price Performance

The company has a quick ratio of 1.61, a current ratio of 2.89 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $5.24 billion, a PE ratio of -37.99 and a beta of 1.13. The stock's 50-day moving average is $71.66 and its 200 day moving average is $73.22.

West Fraser Timber (NYSE:WFG - Get Free Report) last released 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 company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.61 billion. West Fraser Timber had a negative net margin of 2.18% and a negative return on equity of 0.85%. As a group, equities analysts predict that West Fraser Timber Co. Ltd. will post 4.45 earnings per share for the current year.

West Fraser Timber Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 14th. Shareholders of record on Thursday, September 25th were issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Thursday, September 25th. West Fraser Timber's payout ratio is -73.14%.

Institutional Investors Weigh In On West Fraser Timber

Large investors have recently made changes to their positions in the company. Inspire Advisors LLC increased its position in West Fraser Timber by 3.3% in the first quarter. Inspire Advisors LLC now owns 4,637 shares of the company's stock worth $357,000 after buying an additional 146 shares in the last quarter. Comprehensive Money Management Services LLC increased its position in West Fraser Timber by 3.8% in the first quarter. Comprehensive Money Management Services LLC now owns 4,065 shares of the company's stock worth $313,000 after buying an additional 150 shares in the last quarter. Cambridge Investment Research Advisors Inc. increased its position in West Fraser Timber by 6.9% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 2,806 shares of the company's stock worth $216,000 after buying an additional 181 shares in the last quarter. MGO One Seven LLC increased its position in West Fraser Timber by 2.6% in the second quarter. MGO One Seven LLC now owns 8,868 shares of the company's stock worth $650,000 after buying an additional 227 shares in the last quarter. Finally, J.W. Cole Advisors Inc. increased its position in West Fraser Timber by 1.3% in the second quarter. J.W. Cole Advisors Inc. now owns 19,427 shares of the company's stock worth $1,424,000 after buying an additional 240 shares in the last quarter. Institutional investors own 40.23% of the company's stock.

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.

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