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West Fraser Timber (NYSE:WFG) Sets New 1-Year Low on Disappointing Earnings

West Fraser Timber logo with Construction background

Key Points

  • West Fraser Timber set a new 52-week low of $64.09 after reporting disappointing quarterly earnings, with a loss of ($2.63) EPS that missed estimates by ($0.91).
  • The company announced a quarterly dividend of $0.32, translating to an annual yield of 1.9%, but currently has a negative dividend payout ratio of -73.14%.
  • Several analysts have lowered their price targets for West Fraser Timber, with Raymond James reducing its target from $75.00 to $70.00 and a consensus rating categorized as Hold.
  • MarketBeat previews top five stocks to own in November.

West Fraser Timber Co. Ltd. (NYSE:WFG - Get Free Report)'s share price reached a new 52-week low on Thursday following a dissappointing earnings announcement. The company traded as low as $64.09 and last traded at $64.10, with a volume of 1309 shares traded. The stock had previously closed at $66.93.

The company reported ($2.63) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.72) by ($0.91). West Fraser Timber had a negative return on equity of 0.85% and a negative net margin of 2.18%.The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.38 billion.

West Fraser Timber Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, October 14th. Shareholders of record on Thursday, September 25th were given 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 dividend payout ratio (DPR) is presently -73.14%.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Raymond James Financial lowered their price objective on West Fraser Timber from $75.00 to $70.00 and set a "market perform" rating on the stock in a research report on Wednesday, October 15th. Wall Street Zen cut West Fraser Timber from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. TD Securities lowered their price objective 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. Royal Bank Of Canada lowered their price target on West Fraser Timber from $97.00 to $92.00 and set an "outperform" rating on the stock in a report on Monday. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of West Fraser Timber in a report on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $89.50.

View Our Latest Stock Analysis on WFG

Institutional Investors Weigh In On West Fraser Timber

Hedge funds have recently made changes to their positions in the company. Ameritas Advisory Services LLC purchased a new stake in shares of West Fraser Timber during the 2nd quarter worth $27,000. Parallel Advisors LLC lifted its stake in shares of West Fraser Timber by 265.1% during the 2nd quarter. Parallel Advisors LLC now owns 398 shares of the company's stock worth $29,000 after purchasing an additional 289 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of West Fraser Timber by 7,588.9% during the 1st quarter. GAMMA Investing LLC now owns 692 shares of the company's stock worth $53,000 after purchasing an additional 683 shares during the last quarter. PNC Financial Services Group Inc. lifted its stake in shares of West Fraser Timber by 346.6% during the 2nd quarter. PNC Financial Services Group Inc. now owns 2,090 shares of the company's stock worth $153,000 after purchasing an additional 1,622 shares during the last quarter. Finally, Cambridge Investment Research Advisors Inc. lifted its stake in shares of West Fraser Timber by 6.9% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 2,806 shares of the company's stock worth $216,000 after purchasing an additional 181 shares during the last quarter. 40.23% of the stock is currently owned by hedge funds and other institutional investors.

West Fraser Timber Stock Down 1.7%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.61 and a current ratio of 2.89. The stock has a market capitalization of $5.19 billion, a PE ratio of -37.65 and a beta of 1.13. The business has a 50 day moving average of $71.18 and a two-hundred day moving average of $72.96.

West Fraser Timber Company Profile

(Get Free Report)

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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