Albert Monaco, a director at Weyerhaeuser (WY), recently bought 31,500 shares. The buy increased his stake by 80%, and came to a total cost of $988,376. This marks the only insider buy over the past two years.
Insiders have otherwise been sellers of shares, with the company CEO and CFO as the largest sellers, usually following the exercise of stock options. A few company directors have also been steady sellers of shares.
Overall, Weyerhaeuser insiders own 0.3% of shares.
The timberland owner and operator is down 7% over the past year, lagging the stock market’s overall gain. Earnings are off 25%, and revenues declined 3%.
Typically, timber assets hold up well over time, as lumber can grow and harden when not in demand. And timber tends to hold its own against inflation, making for a reasonable long-term investment.
Timber demand could also soar as demand for housing rises, which could occur as interest rates come down later this year.
Action to take: Weyerhaeuser shares are an attractive long-term play on lumber demand, which should remain robust as long as the economy continues expanding, particularly housing demand. Shares are a worthwhile buy here, and pay a 2.6% dividend at current prices.
For traders, the January 2025 $32 calls, last trading for about $1.15, could see mid-double-digit returns on a year-end uptrend for Weyerhaeuser shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
