West Fraser Timber (NYSE:WFG) Shares Gap Up After Earnings Beat

Shares of West Fraser Timber Co. Ltd. (NYSE:WFG) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $78.61, but opened at $82.05. West Fraser Timber shares last traded at $79.89, with a volume of 51,214 shares.

The company reported $0.42 EPS for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.48. The business had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.47 billion. West Fraser Timber had a positive return on equity of 1.29% and a negative net margin of 2.59%. West Fraser Timber’s quarterly revenue was up .0% compared to the same quarter last year. During the same period last year, the company posted ($0.52) earnings per share.

West Fraser Timber Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 4th. Investors of record on Friday, March 15th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Thursday, March 14th. This represents a $1.20 dividend on an annualized basis and a yield of 1.49%. West Fraser Timber’s dividend payout ratio (DPR) is currently -27.91%.

Analyst Ratings Changes

Several analysts have issued reports on the company. Scotiabank set a $100.00 target price on West Fraser Timber and gave the company an “outperform” rating in a research note on Monday, January 22nd. TD Securities lifted their price target on West Fraser Timber from $115.00 to $118.00 and gave the company a “buy” rating in a research report on Tuesday, April 16th. Royal Bank of Canada reiterated an “outperform” rating and issued a $97.00 price target on shares of West Fraser Timber in a research report on Thursday, March 28th. Finally, Raymond James lifted their price target on West Fraser Timber from $100.00 to $105.00 and gave the company a “strong-buy” rating in a research report on Tuesday, February 6th. Five equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $106.25.

Hedge Funds Weigh In On West Fraser Timber

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Zurcher Kantonalbank Zurich Cantonalbank grew its position in West Fraser Timber by 1.4% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 25,614 shares of the company’s stock worth $1,868,000 after buying an additional 347 shares in the last quarter. Raymond James & Associates grew its position in West Fraser Timber by 5.7% during the third quarter. Raymond James & Associates now owns 7,152 shares of the company’s stock worth $519,000 after buying an additional 385 shares in the last quarter. Bank of Nova Scotia Trust Co. boosted its holdings in shares of West Fraser Timber by 16.3% in the 3rd quarter. Bank of Nova Scotia Trust Co. now owns 3,248 shares of the company’s stock worth $236,000 after purchasing an additional 455 shares in the last quarter. Maryland State Retirement & Pension System boosted its holdings in shares of West Fraser Timber by 1.4% in the 1st quarter. Maryland State Retirement & Pension System now owns 36,053 shares of the company’s stock worth $3,116,000 after purchasing an additional 487 shares in the last quarter. Finally, Mraz Amerine & Associates Inc. boosted its holdings in shares of West Fraser Timber by 6.2% in the 3rd quarter. Mraz Amerine & Associates Inc. now owns 8,361 shares of the company’s stock worth $607,000 after purchasing an additional 490 shares in the last quarter. 40.23% of the stock is currently owned by hedge funds and other institutional investors.

West Fraser Timber Price Performance

The business has a fifty day moving average price of $81.46 and a 200-day moving average price of $78.70. The company has a current ratio of 2.26, a quick ratio of 1.45 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $6.39 billion, a PE ratio of -37.73 and a beta of 1.15.

About West Fraser Timber

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.