California Pension Fund Increases Stake in Weyerhaeuser Company

The California Public Employees Retirement System (CalPERS) has increased its investment in Weyerhaeuser Company (NYSE: WY) by 5.5% during the second quarter of 2023. The institutional investor now holds 1,324,695 shares of the real estate investment trust, having acquired an additional 69,391 shares during this period. At the end of the most recent quarter, CalPERS valued its holdings in Weyerhaeuser at approximately $34,031,000.

CalPERS is not alone in boosting its stake in Weyerhaeuser. Several other institutional investors have also made recent adjustments. For instance, JPMorgan Chase & Co. raised its position by 11.5%, bringing its total shares owned to 13,306,064, worth about $341,833,000 after acquiring an additional 1,374,109 shares.

Prudential Financial Inc. increased its holdings by 7.4%, now owning 423,889 shares valued at $10,890,000. Meanwhile, Norges Bank made a significant investment, purchasing a new stake valued at $600,502,000. Furthermore, Vanguard Group Inc. boosted its holdings by 0.5%, now owning 114,318,728 shares worth $2,936,848,000. Overall, hedge funds and institutional investors currently control 82.99% of Weyerhaeuser’s stock.

Weyerhaeuser’s Stock Performance and Dividend Announcement

As of the latest trading session, Weyerhaeuser shares opened at $23.03. The stock has a 50-day moving average price of $22.95 and a 200-day moving average of $24.79. The company boasts a market capitalization of $16.60 billion and a price-to-earnings (PE) ratio of 51.17. Its financial metrics include a debt-to-equity ratio of 0.52, a quick ratio of 0.78, and a current ratio of 1.23. Over the past year, Weyerhaeuser has seen stock prices fluctuate between a low of $21.16 and a high of $31.66.

The company has also announced a quarterly dividend of $0.21, payable on December 12, 2023. Shareholders of record by November 28, 2023 will qualify for this dividend, which translates to an annualized payout of $0.84 and a yield of 3.6%. Weyerhaeuser’s current payout ratio stands at 186.67%.

Analysts Adjust Price Targets for Weyerhaeuser

Analysts have been revising their price targets for Weyerhaeuser shares recently. Citigroup lowered its target from $28.00 to $26.00, maintaining a “buy” rating. Similarly, JPMorgan Chase & Co. adjusted its target from $28.00 to $27.00, while Royal Bank of Canada reduced its target from $31.00 to $30.00 and reiterated an “outperform” rating.

CIBC also decreased its price objective from $32.00 to $31.00 and set an “outperformer” rating. Bank of America reaffirmed a “neutral” rating, adjusting its price objective from $29.00 to $26.00. Overall, one analyst has rated Weyerhaeuser as a “Strong Buy,” six have issued a “Buy” rating, three have assigned a “Hold” rating, and two have recommended a “Sell.”

According to data from MarketBeat, Weyerhaeuser enjoys a consensus rating of “Moderate Buy” and a consensus target price of $28.75.

Weyerhaeuser Company, established in 1900, is one of the largest private owners of timberlands globally. It manages approximately 11 million acres of timberland in the United States and oversees additional timberlands under long-term licenses in Canada. The company is committed to sustainable management practices in line with internationally recognized forestry standards.