Traders Buy Weyerhaeuser (WY) on Weakness on Analyst Downgrade

Traders purchased shares of Weyerhaeuser Co (NYSE:WY) on weakness during trading hours on Tuesday after BMO Capital Markets lowered their price target on the stock from $36.00 to $33.00. $48.04 million flowed into the stock on the tick-up and $35.13 million flowed out of the stock on the tick-down, for a money net flow of $12.91 million into the stock. Of all companies tracked, Weyerhaeuser had the 27th highest net in-flow for the day. Weyerhaeuser traded down ($0.20) for the day and closed at $26.23

WY has been the subject of several other research reports. Citigroup cut their price target on Weyerhaeuser from $42.00 to $35.00 and set a “buy” rating for the company in a research note on Thursday, October 25th. Raymond James cut their price objective on Weyerhaeuser from $41.00 to $36.00 and set a “buy” rating for the company in a research report on Monday. Zacks Investment Research upgraded Weyerhaeuser from a “hold” rating to a “buy” rating and set a $38.00 price objective for the company in a research report on Friday, August 3rd. Vertical Research upgraded Weyerhaeuser from a “hold” rating to a “buy” rating in a research report on Wednesday, October 24th. Finally, DA Davidson upgraded Weyerhaeuser from a “neutral” rating to a “buy” rating and cut their price objective for the stock from $37.50 to $35.00 in a research report on Monday. One analyst has rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company. Weyerhaeuser has a consensus rating of “Buy” and a consensus price target of $35.83.

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. raised its position in Weyerhaeuser by 2.4% in the second quarter. BlackRock Inc. now owns 51,753,003 shares of the real estate investment trust’s stock worth $1,886,914,000 after acquiring an additional 1,220,115 shares in the last quarter. Northern Trust Corp grew its holdings in Weyerhaeuser by 1.9% in the second quarter. Northern Trust Corp now owns 11,178,600 shares of the real estate investment trust’s stock valued at $407,571,000 after purchasing an additional 207,103 shares during the last quarter. Bank of America Corp DE grew its holdings in Weyerhaeuser by 1.2% in the second quarter. Bank of America Corp DE now owns 7,983,841 shares of the real estate investment trust’s stock valued at $291,091,000 after purchasing an additional 97,337 shares during the last quarter. Morgan Stanley grew its holdings in Weyerhaeuser by 10.3% in the second quarter. Morgan Stanley now owns 7,555,419 shares of the real estate investment trust’s stock valued at $275,472,000 after purchasing an additional 706,848 shares during the last quarter. Finally, Principal Financial Group Inc. grew its holdings in Weyerhaeuser by 8.8% in the first quarter. Principal Financial Group Inc. now owns 4,958,363 shares of the real estate investment trust’s stock valued at $173,543,000 after purchasing an additional 401,218 shares during the last quarter. Hedge funds and other institutional investors own 76.31% of the company’s stock.

The company has a quick ratio of 1.04, a current ratio of 1.35 and a debt-to-equity ratio of 0.65. The firm has a market cap of $20.07 billion, a price-to-earnings ratio of 22.81, a price-to-earnings-growth ratio of 3.41 and a beta of 1.38.

Weyerhaeuser (NYSE:WY) last posted its earnings results on Friday, October 26th. The real estate investment trust reported $0.28 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.39 by ($0.11). The firm had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.95 billion. Weyerhaeuser had a net margin of 14.51% and a return on equity of 11.65%. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same period last year, the company posted $0.34 EPS. On average, research analysts anticipate that Weyerhaeuser Co will post 1.56 earnings per share for the current fiscal year.

About Weyerhaeuser (NYSE:WY)

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.4 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards.

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