Weyerhaeuser Stock Story

WY -  USA Stock  

USD 37.86  0.06  0.16%

It appears Weyerhaeuser may not recover as fast as we have hopped for as its price went down 0.5% today. The company current daily volatility is 1.71 percent, with a beta of 1.14 and an alpha of 0.1 over DOW. Whilst many millenniums are getting more into investing against high market volatility, it is quite pruden to break down Weyerhaeuser based on its historical prices. We will cover the possibilities of making Weyerhaeuser into a steady grower in February.
Published over three months ago
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Should we continue shadow Weyerhaeuser (NYSE:WY) executives?
Weyerhaeuser reports roughly 2.33 B in cash with 3.11 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.11.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Weyerhaeuser has an asset utilization ratio of 35.65 percent. This suggests that the company is making $0.36 for each dollar of assets. An increasing asset utilization means that Weyerhaeuser is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Weyerhaeuser, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Weyerhaeuser along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Weyerhaeuser's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Weyerhaeuser in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Weyerhaeuser. Your research has to be compared to or analyzed against Weyerhaeuser's peers to derive any actionable benefits. When done correctly, Weyerhaeuser's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Weyerhaeuser.

How important is Weyerhaeuser's Liquidity

Weyerhaeuser financial leverage refers to using borrowed capital as a funding source to finance Weyerhaeuser ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Weyerhaeuser financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Weyerhaeuser's total debt and its cash.

How does Weyerhaeuser utilize its cash?

To perform a cash flow analysis of Weyerhaeuser, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Weyerhaeuser is receiving and how much cash it distributes out in a given period. The Weyerhaeuser cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Weyerhaeuser Correlation with Peers

Investors in Weyerhaeuser can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Weyerhaeuser. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Weyerhaeuser and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Weyerhaeuser is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Weyerhaeuser for more details

Acquisition by David Wold of 9351 shares of Weyerhaeuser subject to Rule 16b-3

Legal trades by Weyerhaeuser insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Weyerhaeuser insider trading alert for grant of common by David Wold, Senior Vice President & CFO, on 17th of May 2022. This event was filed by Weyerhaeuser Co with SEC on 2022-05-17. Statement of changes in beneficial ownership - SEC Form 4. David Wold currently serves as chief accounting officer, vice president of Weyerhaeuser [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

We consider Weyerhaeuser very steady. Weyerhaeuser shows Sharpe Ratio of 0.0361, which attests that the company had 0.0361% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Weyerhaeuser, which you can use to evaluate the future volatility of the company. Please check out Weyerhaeuser Mean Deviation of 1.37, downside deviation of 1.91, and Market Risk Adjusted Performance of 0.0269 to validate if the risk estimate we provide is consistent with the expected return of 0.0618%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Weyerhaeuser has 91 percent odds to go over $37 this year

Weyerhaeuser current maximum drawdown rises over 10.01. Weyerhaeuser has relatively low volatility with skewness of 0.17 and kurtosis of 0.88. However, we advise all investors to independently investigate Weyerhaeuser to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Weyerhaeuser's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Weyerhaeuser's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Weyerhaeuser Implied Volatility

Weyerhaeuser's implied volatility exposes the market's sentiment of Weyerhaeuser stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Weyerhaeuser's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Weyerhaeuser stock will not fluctuate a lot when Weyerhaeuser's options are near their expiration.

Our Final Take On Weyerhaeuser

While some firms within the reit—specialty industry are still a little expensive, even after the recent corrections, Weyerhaeuser may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Weyerhaeuser. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Weyerhaeuser.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Weyerhaeuser. Please refer to our Terms of Use for any information regarding our disclosure principles.

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