Vanguard Group Inc. Decreases Stock Holdings in Sylvamo Corporation $SLVM

Key Points

• Vanguard trimmed its Sylvamo stake: Vanguard Group cut its position in Sylvamo by 2.2% in the fourth quarter, selling 64,891 shares and ending with 2.93 million shares worth about $141 million.
• Mixed institutional and analyst sentiment: Several other institutions increased holdings, and institutional investors now own 91.16% of the company. Wall Street’s consensus rating is Hold with an average price target of $54.
• Recent results missed earnings expectations: Sylvamo reported Q1 EPS of -$0.53, missing estimates, though revenue of $755 million topped forecasts. The company also pays a quarterly dividend of $0.45, yielding about 4.4% annually.

Vanguard Group Inc. cut its stake in Sylvamo Corporation (NYSE:SLVM - Free Report) by 2.2% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,928,108 shares of the company's stock after selling 64,891 shares during the quarter. Vanguard Group Inc. owned 7.42% of Sylvamo worth $140,988,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Nomura Holdings Inc. lifted its holdings in Sylvamo by 34.1% in the third quarter. Nomura Holdings Inc. now owns 2,150,000 shares of the company's stock valued at $95,073,000 after acquiring an additional 546,336 shares during the period. Millennium Management LLC increased its position in shares of Sylvamo by 3,945.8% during the 3rd quarter. Millennium Management LLC now owns 316,380 shares of the company's stock valued at $13,990,000 after purchasing an additional 308,560 shares during the last quarter. Canada Pension Plan Investment Board bought a new position in shares of Sylvamo in the 2nd quarter worth approximately $15,030,000. SG Americas Securities LLC boosted its holdings in shares of Sylvamo by 2,246.7% in the fourth quarter. SG Americas Securities LLC now owns 223,568 shares of the company's stock worth $10,765,000 after buying an additional 214,041 shares during the last quarter. Finally, Bridgeway Capital Management LLC increased its holdings in Sylvamo by 334.1% during the third quarter. Bridgeway Capital Management LLC now owns 273,496 shares of the company's stock valued at $12,094,000 after buying an additional 210,496 shares during the last quarter. Institutional investors own 91.16% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Royal Bank Of Canada cut their price objective on shares of Sylvamo from $50.00 to $49.00 and set a "sector perform" rating for the company in a research report on Monday. Truist Financial started coverage on Sylvamo in a report on Monday, March 30th. They issued a "buy" rating and a $54.00 target price on the stock. Zacks Research raised Sylvamo from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Sylvamo in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Sylvamo has a consensus rating of "Hold" and an average price target of $54.00.

Sylvamo Stock Performance

SLVM opened at $41.14 on Tuesday. The company has a 50 day simple moving average of $42.40 and a two-hundred day simple moving average of $45.95. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.45 and a quick ratio of 0.81. The firm has a market cap of $1.63 billion, a P/E ratio of 16.26, a PEG ratio of 0.50 and a beta of 0.91. Sylvamo Corporation has a 1-year low of $37.09 and a 1-year high of $57.65.

Sylvamo (NYSE:SLVM - Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The company reported ($0.53) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.28). The firm had revenue of $755.00 million for the quarter, compared to the consensus estimate of $740.85 million. Sylvamo had a net margin of 3.11% and a return on equity of 9.79%. The firm's revenue for the quarter was down 8.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.68 earnings per share. Equities analysts forecast that Sylvamo Corporation will post 2.75 earnings per share for the current fiscal year.

Sylvamo Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, April 28th. Stockholders of record on Tuesday, April 7th were paid a $0.45 dividend. The ex-dividend date of this dividend was Tuesday, April 7th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 4.4%. Sylvamo's dividend payout ratio is 71.15%.

Insider Activity

In related news, SVP Rodrigo Davoli sold 3,250 shares of Sylvamo stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $46.46, for a total transaction of $150,995.00. Following the sale, the senior vice president owned 46,484 shares of the company's stock, valued at approximately $2,159,646.64. This trade represents a 6.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.81% of the company's stock.

Sylvamo Profile

Sylvamo Corporation, trading on the New York Stock Exchange under the ticker SLVM, is a leading global producer of uncoated freesheet paper. The company was established in October 2021 through a spin-off from International Paper, creating an independent entity focused exclusively on the development, manufacturing and marketing of high-quality uncoated paper products. Headquartered in Memphis, Tennessee, Sylvamo draws on decades of industry experience inherited from its predecessor, positioning itself to meet evolving customer needs in paper-based communications and packaging applications.

The company’s core product portfolio includes office and digital print papers, direct mail and marketing materials, catalog and commercial printing papers, and a range of specialty and value-added grades.

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