Weyerhaeuser Company (WY) Is No Stock for (Widows and) Orphans

On December 03, 2019, Weyerhaeuser Company (NYSE:WY) shares gained 0.41% or 0.12 points to close at $29.33 with a heavy trading volume of 4.373 million shares. It opened the trading session at $28.99, the shares rose to $29.39 and dropped to $28.93, the range by which the price of stock traded the whole day. The company now has a market cap of $22 billion and currently has 751.2 million outstanding shares. Weyerhaeuser Company (WY) stock has plunged -2.2 percent of market value in 21 trading days.

WY stock’s trailing 3-year beta is 1.62, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.21 share in the trailing 52 weeks. The stock’s value surged 34.17 percent year to date (YTD) compared to a rise of 11.06 percent in 52 week’s period. The firm’s shares are still trading -3.14 percent below its 1-year high of $30.28 and 42.93 percent up from 52-week low of $20.52. The average consensus ranking on the company is 1.8, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Weyerhaeuser Company (WY) is most likely going to rise 8.93 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $34-month high price target. This represents a whopping 15.92 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $32, which means a return possibility of 9.1 percent in comparison with the closing price of the stock of $29.33 on December 03. The lowest price set for the stock is $28.5 — just above -2.83 percent from WY share price now.

Past records have indicated that shares in Weyerhaeuser Company rose on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of WY’s Q4 earnings on January 31. Analysts are predicting revenue to suffer decline of -6 percent to $1.54B in the financial fourth quarter, while EPS will soar by about -40 percent to $0.06 per share. In the last quarter, it earnings of $0.16 per share came better than the $0.10488, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.67B, missing the $1.71B analysts had expected. Earnings are seen to rise by 18 percent this year, 86.65 percent in the coming year and the trend continues by 5 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Weyerhaeuser Company (NYSE:WY) and observe the pattern. The earliest insider trade happened on 06/06/2019. Stockfish Devin W gathered a total of 5.2 thousand shares of the firm at average share price of $23.03. The total amount for the purchase was set at $119.64 thousand. On completing this exchange, the President and CEO account balance was 220.86 thousand shares. The stock grew 26.83 percent from that insider purchase. On 02/01/2019, Hagen Russell S, Senior Vice President and CFO, did a sale of 8 thousand shares at a price of $26.32 per share. This got rid of 210.56 thousand shares from the insider’s fortune and the stock experienced a 10.98 percent rally in price since the news became public. This exchange saw 122.4 thousand shares get out from the Senior Vice President and CFO account.

On 11/13/2018, Senior Vice President Stockfish Devin W recorded a purchase transaction valued at $751.08 thousand. The purchase at $26.93 a share has added 27.89 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 8.47 percent increase since the transaction reporting date. The company insider is left with 99.17 thousand shares remaining in the account. HILLMAN JEANNE M, who works as VP & Chief Accounting Officer at the company, performed a sale of 15.39 thousand shares in a transaction worth $542 thousand. The disposal recorded on 02/23/2018 was priced at $35.22 per share. The stock price plunged -17.06 percent since the transaction. HILLMAN JEANNE M currently holds a stake of 63.94 thousand in WY stock which is worth $1.88 million after the insider selling.

The stock is lingering around the initial support level of $29.04. After this, the following support is at the zone of $28.76. Up until the time the WY stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 53.04 on the daily chart, and this may be a cause for concern. In case the price goes below $28.76 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $29.5 level may cause a pull-back move approaching $29.68 mark.

The industry WY deals with has an average P/E of 68. Its P/B ratio is standing at 2.5X compared to the 6.6 industry average. It is additionally sporting a 3.3 on the Price-to-Sales ratio, compared to the industry’s P/S average of 7.1. Weyerhaeuser Company has a 17.9% gross profit margin, with its operating margin around 1.2%. Alongside this, the company’s net profit margin currently stands at -2.3%.