William Blair Investment Management LLC Invests $33.78 Million in Sylvamo Corporation $SLVM

Key Points

• William Blair Investment Management opened a new position in Sylvamo during the fourth quarter, buying 701,497 shares worth about $33.78 million and ending with roughly 1.78% ownership.
• Sylvamo reported mixed quarterly results: EPS of ($0.53) missed expectations, while revenue of $755 million came in above estimates but was still down 8% year over year.
• The company declared a quarterly dividend of $0.45 per share, implying a 4.7% yield, while analysts currently rate the stock a consensus “Hold” with a $54 price target.

William Blair Investment Management LLC acquired a new position in Sylvamo Corporation (NYSE:SLVM - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 701,497 shares of the company's stock, valued at approximately $33,777,000. William Blair Investment Management LLC owned about 1.78% of Sylvamo at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the business. Life Cycle Investment Partners Ltd acquired a new position in shares of Sylvamo in the 4th quarter worth approximately $13,438,000. Covestor Ltd increased its position in shares of Sylvamo by 16.4% in the fourth quarter. Covestor Ltd now owns 5,184 shares of the company's stock worth $249,000 after acquiring an additional 731 shares in the last quarter. Larson Financial Group LLC increased its position in shares of Sylvamo by 20,271.4% in the fourth quarter. Larson Financial Group LLC now owns 2,852 shares of the company's stock worth $137,000 after acquiring an additional 2,838 shares in the last quarter. Handelsbanken Fonder AB increased its position in shares of Sylvamo by 41.8% in the fourth quarter. Handelsbanken Fonder AB now owns 9,500 shares of the company's stock worth $457,000 after acquiring an additional 2,800 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of Sylvamo by 84,243.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 128,202 shares of the company's stock worth $6,173,000 after acquiring an additional 128,050 shares in the last quarter. Institutional investors and hedge funds own 91.16% of the company's stock.

Sylvamo Stock Performance

SLVM stock opened at $38.13 on Monday. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.81 and a current ratio of 1.45. The stock has a market cap of $1.52 billion, a P/E ratio of 15.07, a P/E/G ratio of 0.58 and a beta of 0.91. The firm has a 50 day simple moving average of $41.11 and a 200 day simple moving average of $45.69. Sylvamo Corporation has a 52 week low of $35.53 and a 52 week high of $56.80.

Sylvamo (NYSE:SLVM - Get Free Report) last posted its quarterly earnings results on Friday, May 8th. The company reported ($0.53) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.28). The company had revenue of $755.00 million for the quarter, compared to analyst estimates of $740.85 million. Sylvamo had a return on equity of 9.79% and a net margin of 3.11%.The business's revenue for the quarter was down 8.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.68 earnings per share. Research analysts anticipate that Sylvamo Corporation will post 2.32 earnings per share for the current fiscal year.

Sylvamo Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 28th. Investors of record on Tuesday, July 7th will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 4.7%. The ex-dividend date is Tuesday, July 7th. Sylvamo's dividend payout ratio (DPR) is currently 71.15%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Weiss Ratings downgraded shares of Sylvamo from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Truist Financial assumed coverage on shares of Sylvamo in a research report on Monday, March 30th. They issued a "buy" rating and a $54.00 target price on the stock. Zacks Research raised shares of Sylvamo from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Royal Bank Of Canada dropped their target price on shares of Sylvamo from $50.00 to $49.00 and set a "sector perform" rating on the stock in a research report on Monday, May 11th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Sylvamo presently has an average rating of "Hold" and a consensus target price of $54.00.

Insider Activity at Sylvamo

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

Sylvamo Company 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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