Nancy Lowe, CFO of Weyerhaeuser (WY) recently bought 10,000 more shares. The buy increased her stake by over 46 percent, and came to a purchase price of just over $385,000.
Insiders have been active buyers and sellers in the past few years, with large insider buys at the pandemic low last year giving buyers an edge. Overall, insiders own just 0.2 percent of company shares.
Shares are still below highs set back in 2007, although they are up nearly 97 percent in the past year, back to pre-pandemic prices. The company’s forestry services are likely to benefit from the rise in lumber prices in the past few months to record highs.
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With few companies with a direct play on timber as an asset class, producers like Weyerhaeuser will likely continue to attract investor attention.
Action to take: The company recently doubled its dividend, but the yield of 1.7 percent is a bit low. For an investment in the tight lumber market, however, it could continue to fare well.
For traders, the current uptrend suggests a simple call option trade. The September $40 calls are an at-the-money trade going for about $2.75. If the current rally in shares continues at its current pace, the option could easily have triple-digit profits. Traders may want to buy multiple contracts and scale out on a continued rally.
Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.