Weyerhaeuser Company (WY) traded on unusually high volume on Dec. 19, as the stock lost 1.86% to close at $23.20. On the day, Weyerhaeuser Company saw 10.47 million shares trade hands on 54,180 trades. Considering that the stock averages only a daily volume of 5.17 million shares a day over the last month, this represents a pretty significant bump in volume over the norm.
Generally speaking, when a stock experiences a sudden spike in trading volume, it may be seen as a bullish signal for investors. An increase in volume means more market awareness for the company, potentially setting up a more meaningful move in stock price. The added volume also provides a level of support and stability for price advances.
The stock has traded between $38.39 and $23.46 over the last 52-weeks, its 50-day SMA is now $26.78, and its 200-day SMA $32.60. Weyerhaeuser Company has a P/B ratio of 1.92. It also has a P/E ratio of 16.3.
Weyerhaeuser ranks among the world’s largest forest product companies. Following the 2016 sale of its pulp business to International Paper, Weyerhaeuser operates three business segments: timberlands, wood products, and real estate. Weyerhaeuser is structured as a real estate investment trust and is not required to pay federal income taxes on earnings generated by timber harvest activities. Earnings from its wood products segment are subject to federal income tax. Weyerhaeuser acquired fellow timber REIT Plum Creek in 2016.
Headquartered in Seattle, WA, Weyerhaeuser Company has 9,300 employees and is currently under the leadership of CEO Doyle R. Simons.