Weyerhaeuser Falls on Housing Recovery Concerns: Seattle Mover
Weyerhaeuser Co. (WY), a U.S. lumber producer and home builder, fell for a third day on concern there may not be a quick recovery in U.S. housing construction.
Weyerhaeuser dropped 1.3 percent to $19.96 at the close in New York. Shares of the Federal Way, Washington-based company have lost 5 percent since Jan. 19, when they reached a five- month high of $21.12 and U.S. data was released showing housing starts last month were lower than economists estimated.
“I just think Weyerhaeuser at $21 is kind of ridiculous,” Paul Quinn, a Vancouver-based analyst at RBC Capital Markets Quinn, said today in a telephone interview.“Everyone’s been expecting this quick housing recovery, but I just don’t see it. The stock is drifting down to where it should be.”
U.S. homebuilders began working on fewer houses than forecast in December, according to Commerce Department figures released last week. Starts fell to a 657,000 annual rate last month, less than the 680,000 starts estimated on average by 76 economists in a Bloomberg survey.
Building permits, indicators for future construction activity, were little changed, according to Commerce Department data.
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