One basic materials player that insiders are snapping up a large amount of stock in here is Weyerhaeuser ( WY), a real estate investment trust that grows, harvests, manufactures and sells timbers, softwood lumber, engineered lumber, structural panel, pulp among others. Insiders are buying this stock into notable weakness, since shares are off by 10.6% in the last three months.
Weyerhaeuser has a market cap of $15 billion and an enterprise value of $18 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 31.13 and a forward price-to-earnings of 18.60. Its estimated growth rate for this year is 108.6%, and for next year it's pegged at 23.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $639 million and its total debt is $4.14 billion. This stock currently sports a dividend yield of 2.9%.>>5 Stocks the Pros Love This Summer A director just bought 50,000 shares, or about $1.37 million worth of stock, at $27.50 per share. From a technical perspective, WY is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last month and change, with shares dropping from its high of $33.24 to its recent low of $26.38 a share. During that downtrend, shares of WY have been consistently making lower highs and lower lows, which is bearish technical price action. That said, WY has started to bounce off that $26.38 low and it's now moving within range of triggering a near-term breakout trade. If you're bullish on WY, then look for long-biased trades as long as this stock is trending above $26.38, and then once it breaks out above its 200-day moving average at $28.72 a share and then above more resistance at $29.36 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 5.95 million shares. If that breakout hits soon, then WY will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $30.03 to possible $31.50 a share.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV