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

West Fraser Timber Co. Ltd. (NYSE:WFG) gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.48. The firm had revenue of $1.63 billion during 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% on a year-over-year basis. During the same period in the previous year, the company earned ($0.52) earnings per share.

West Fraser Timber Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 4th. Investors of record on Friday, March 15th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.52%. The ex-dividend date of this dividend was Thursday, March 14th. West Fraser Timber’s dividend payout ratio is currently -27.91%.

Wall Street Analyst Weigh In

A number of brokerages have commented on WFG. TD Securities lifted their target price on West Fraser Timber from $115.00 to $118.00 and gave the company a “buy” rating in a research note on Tuesday, April 16th. Royal Bank of Canada restated an “outperform” rating and issued a $97.00 target price on shares of West Fraser Timber in a research note on Thursday, March 28th. Raymond James lifted their target price on West Fraser Timber from $100.00 to $105.00 and gave the company a “strong-buy” rating in a research note on Tuesday, February 6th. Finally, 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. Five analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock 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 made changes to their positions in WFG. Bfsg LLC acquired a new position in shares of West Fraser Timber during the fourth quarter worth approximately $42,000. Accordant Advisory Group Inc acquired a new position in shares of West Fraser Timber during the first quarter worth approximately $43,000. ICA Group Wealth Management LLC acquired a new position in shares of West Fraser Timber during the fourth quarter worth approximately $43,000. Tower Research Capital LLC TRC acquired a new position in shares of West Fraser Timber during the fourth quarter worth approximately $78,000. Finally, Dixon Mitchell Investment Counsel Inc. acquired a new position in shares of West Fraser Timber during the first quarter worth approximately $103,000. 40.23% of the stock is currently owned by institutional investors and hedge funds.

West Fraser Timber Stock 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 company has a 50-day moving average price of $81.46 and a 200-day moving average price of $78.70. The firm has a market capitalization of $6.25 billion, a price-to-earnings ratio of -36.61 and a beta of 1.15.

West Fraser Timber Company Profile

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.