West Fraser Timber (NYSE:WFG) Shares Gap Up on Strong Earnings

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 traded.

The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.48. The company had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.47 billion. West Fraser Timber had a positive return on equity of 2.34% and a negative net margin of 1.39%. The business’s quarterly revenue was up .0% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.52) earnings per share.

West Fraser Timber Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 4th. Investors of record on Friday, March 15th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.52%. The ex-dividend date of this dividend was Thursday, March 14th. West Fraser Timber’s dividend payout ratio is currently -49.59%.

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On West Fraser Timber

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in West Fraser Timber by 1.5% in the third quarter. Vanguard Group Inc. now owns 2,785,571 shares of the company’s stock valued at $202,065,000 after buying an additional 39,929 shares during the period. Bank of Nova Scotia Trust Co. raised its position in shares of West Fraser Timber by 16.3% during the third 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 during the period. Hudson Bay Capital Management LP raised its position in shares of West Fraser Timber by 47.6% during the third quarter. Hudson Bay Capital Management LP now owns 155,000 shares of the company’s stock worth $11,244,000 after purchasing an additional 50,000 shares during the period. Qube Research & Technologies Ltd acquired a new position in shares of West Fraser Timber during the third quarter worth approximately $1,798,000. Finally, Royal Bank of Canada raised its position in shares of West Fraser Timber by 9.0% during the third quarter. Royal Bank of Canada now owns 2,319,488 shares of the company’s stock worth $168,256,000 after purchasing an additional 191,613 shares during the period. 40.23% of the stock is owned by institutional investors and hedge funds.

West Fraser Timber Price Performance

The company has a quick ratio of 1.45, a current ratio of 2.26 and a debt-to-equity ratio of 0.03. The business has a 50-day moving average price of $81.42 and a two-hundred day moving average price of $78.70. The company has a market capitalization of $6.27 billion, a price-to-earnings ratio of -65.21 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.