Insider Buying

Insider Buying Report: Weyerhaeuser Company (WY:US)

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Weyerhaeuser Company
WY:US
12 months:
+111%
Activity:
Bullish
Pattern:
Large purchase from CFO
News:
Strong Q1 results
Weyerhaeuser Company
WY:US
12 months:
+111%
Activity:
Bullish
Pattern:
Large purchase from CFO
News:
Strong Q1 results

CFO purchases can be very informative insider transactions. CFOs tend to have a good read on their firms’ financials and some studies have found that these insiders earn higher profits following their purchases of company shares than CEOs.

In this report, we are going to highlight a large CFO purchase at Weyerhaeuser Company (WY:US). Weyerhaeuser is a timber, land, and forest products company. Operating in the US and Canada, it manages around 11 million acres of forests on a continuous and fully sustainable cycle. The company is listed on the New York Stock Exchange and currently has a market capitalization of $29.4 billion.

Weyerhaeuser: Insider Buying

Our records show that on 5 May, Weyerhaeuser’s CFO Nancy Loewe bought 10,000 WY shares at a price of $38.56 per share. This purchase cost the insider a total of $385,562.

46% Increase in Holding

This trade stands out for two reasons. Firstly, it is a large purchase. Our data shows that it is the largest purchase from an insider at Weyerhaeuser for several years.

Secondly, it has increased the size of her holding by 46%. This suggests she is very confident the stock is set to rise.

It’s also worth noting that insider purchases at Weyerhaeuser are relatively uncommon. This is only the second purchase from an insider in the last 12 months.

Strong Momentum

Weyerhaeuser recently posted a strong set of first-quarter results. For the quarter, the company generated net sales and net earnings of $2,506 million and $681 million respectively, compared to figures of $1,728 million and $150 million in the same period in 2020. Earnings per share came in at $0.91, up from $0.20 in Q1 2020.

Looking ahead, the group said that it expects second-quarter earnings and Adjusted EBITDA in its Wood Products division – which makes up a large proportion of total sales – to be “significantly higher” than the first quarter. It noted that to date, second-quarter benchmark pricing for lumber and oriented strand board is significantly higher than the first quarter average.

“As 2021 progresses, new residential construction activity is exhibiting remarkable momentum, and repair and remodel demand remains very favorable,” commented Devin W. Stockfish, President and CEO.

Putting this all together, we see the purchase from the CFO here as a bullish signal.

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