Zacks Investment Research downgraded shares of Weyerhaeuser (NYSE:WY) from a hold rating to a sell rating in a research note released on Saturday.
According to Zacks, “In the last three months, Weyerhaeuser's shares have underperformed the industry and look overvalued comparatively. In the fourth quarter of 2017, the company's earnings and revenues lagged the Zacks Consensus Estimate by 11.4% and 2.5%, respectively. Also, costs of sales in the quarter jumped 3% year over year. For the first quarter of 2018, the company predicts that earnings and adjusted EBITDA for the Real Estate, Energy & Natural Resources segment will be lower sequentially due to weakness in real estate sales and a decline in royalties generated from the Energy and Natural Resources businesses. Also, the company faces headwinds from high debt levels (roughly at $5.9 billion at the fourth-quarter end), unfavorable foreign currency movements and industry competition, which might restrict its growth in the quarters ahead.”
Other equities analysts also recently issued research reports about the stock. TheStreet raised shares of Weyerhaeuser from a c+ rating to a b- rating in a research note on Wednesday, November 8th. Bank of America raised shares of Weyerhaeuser from a neutral rating to a buy rating in a research note on Wednesday, January 24th. Argus raised their target price on shares of Weyerhaeuser from $37.00 to $39.00 and gave the company a buy rating in a research note on Thursday, November 2nd. Finally, Stephens initiated coverage on shares of Weyerhaeuser in a research note on Tuesday, October 24th. They set an equal weight rating and a $35.00 target price for the company. One research analyst has rated the stock with a sell rating, five have issued a hold rating and five have issued a buy rating to the company’s stock. Weyerhaeuser currently has a consensus rating of Hold and a consensus target price of $37.44.
Weyerhaeuser (NYSE:WY) last announced its earnings results on Friday, February 2nd. The real estate investment trust reported $0.31 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.35 by ($0.04). Weyerhaeuser had a net margin of 8.09% and a return on equity of 9.62%. The business had revenue of $1.82 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same period in the prior year, the business posted $0.14 EPS. Weyerhaeuser’s revenue for the quarter was up 14.2% on a year-over-year basis. analysts anticipate that Weyerhaeuser will post 1.34 EPS for the current year.
In other news, insider Rhonda D. Hunter sold 45,939 shares of the stock in a transaction that occurred on Tuesday, November 14th. The shares were sold at an average price of $35.72, for a total transaction of $1,640,941.08. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Rhonda D. Hunter sold 23,343 shares of the stock in a transaction that occurred on Friday, November 24th. The shares were sold at an average price of $36.12, for a total transaction of $843,149.16. Following the sale, the insider now owns 98,973 shares in the company, valued at approximately $3,574,904.76. The disclosure for this sale can be found here. 1.20% of the stock is currently owned by company insiders.
Several large investors have recently bought and sold shares of WY. Exane Derivatives boosted its holdings in Weyerhaeuser by 94,833.3% in the fourth quarter. Exane Derivatives now owns 2,848 shares of the real estate investment trust’s stock worth $100,000 after purchasing an additional 2,845 shares during the last quarter. Barrett Asset Management LLC boosted its holdings in Weyerhaeuser by 102.2% in the fourth quarter. Barrett Asset Management LLC now owns 3,134 shares of the real estate investment trust’s stock worth $111,000 after purchasing an additional 1,584 shares during the last quarter. Chicago Partners Investment Group LLC boosted its holdings in Weyerhaeuser by 60.5% in the third quarter. Chicago Partners Investment Group LLC now owns 3,853 shares of the real estate investment trust’s stock worth $131,000 after purchasing an additional 1,453 shares during the last quarter. Cornerstone Advisors Inc. boosted its holdings in Weyerhaeuser by 324.7% in the fourth quarter. Cornerstone Advisors Inc. now owns 4,565 shares of the real estate investment trust’s stock worth $161,000 after purchasing an additional 3,490 shares during the last quarter. Finally, Boston Private Wealth LLC purchased a new stake in Weyerhaeuser in the third quarter worth approximately $206,000. Hedge funds and other institutional investors own 74.79% of the company’s stock.
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Weyerhaeuser Company is a timber, land and forest products company. As of December 31, 2016, the Company owned or controlled 13.1 million acres of timberlands, primarily in the United States, and manages additional timberlands under long-term licenses in Canada. The Company’s segments include Timberlands; Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products.
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