California Pension Fund Increases Stake in Weyerhaeuser Company

The California Public Employees Retirement System (CalPERS) has increased its investment in Weyerhaeuser Company, a leading real estate investment trust, by 5.5% during the second quarter of 2023. This move follows the acquisition of an additional 69,391 shares, bringing CalPERS’ total holdings to 1,324,695 shares valued at approximately $34.03 million.

This investment decision reflects a broader trend among institutional investors. Various hedge funds and investment firms have also adjusted their stakes in Weyerhaeuser recently. Notably, JPMorgan Chase & Co. raised its position by 11.5%, acquiring an additional 1,374,109 shares, resulting in a total of 13,306,064 shares worth $341.83 million. Additionally, OFI Invest Asset Management entered a new stake valued at $1.37 million, while Prudential Financial Inc. increased its holdings by 7.4%, owning 423,889 shares worth $10.89 million.

Norges Bank made a significant investment, purchasing a new position valued at $600.5 million. Vanguard Group Inc. also slightly boosted its holdings by 0.5%, now controlling 114,318,728 shares valued at approximately $2.94 billion. Overall, institutional investors now own 82.99% of Weyerhaeuser’s stock.

Weyerhaeuser’s Stock Performance and Dividend Announcement

As of Thursday, Weyerhaeuser’s stock opened at $23.03. The company’s performance indicators include a 50-day moving average price of $22.95 and a 200-day moving average price of $24.79. Weyerhaeuser boasts a market capitalization of $16.6 billion and a price-to-earnings (PE) ratio of 51.17, alongside a price-to-earnings-growth ratio of 129.27.

Weyerhaeuser recently announced a quarterly dividend of $0.21 per share, scheduled for payment on December 12. Shareholders of record on November 28 will receive this dividend, resulting in an annualized payout of $0.84 and a yield of 3.6%. The company currently has a payout ratio of 186.67%.

Analysts Update Price Targets for Weyerhaeuser

Recent analyses from several brokerages have adjusted their price targets for Weyerhaeuser. Citigroup revised its target from $28.00 to $26.00, maintaining a “buy” rating. Similarly, JPMorgan Chase & Co. lowered its target from $28.00 to $27.00 with an “overweight” rating. Royal Bank of Canada reduced its target from $31.00 to $30.00, while CIBC adjusted theirs from $32.00 to $31.00, both issuing “outperform” ratings.

Additionally, Bank of America reissued a “neutral” rating with a target price of $26.00, down from $29.00. Current consensus indicates that one analyst has rated the stock as a Strong Buy, six have assigned it a Buy rating, three have issued a Hold rating, and two have recommended a Sell. According to MarketBeat data, Weyerhaeuser holds a consensus rating of “Moderate Buy” with an average target price of $28.75.

Weyerhaeuser Company, established in 1900, is one of the largest private owners of timberlands globally, controlling approximately 11 million acres in the U.S. and managing additional lands under long-term licenses in Canada. The company adheres to sustainable forestry practices in compliance with internationally recognized standards.