Investors Buy High Volume of Call Options on Clearwater Paper (NYSE:CLW)

Key Points

• Call-option activity surged: Traders purchased 5,097 Clearwater Paper call options, roughly 790% above the average volume, suggesting heightened speculative interest.
• Q3 results improved year over year but missed expectations: The net loss narrowed to $1.6 million, while revenue fell to $384.9 million and EPS of $(0.23) came in below consensus. Debt also declined and the company completed a refinancing.
• Operational challenges weighed on the stock: Augusta mill disruptions reduced volumes and increased costs, while lower paperboard pricing pressured sales. Shares dropped to $13.20, and analysts maintained a consensus “Hold” rating with a $19.67 target.

Clearwater Paper Corporation (NYSE:CLW - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock traders purchased 5,097 call options on the company. This is an increase of approximately 790% compared to the average volume of 573 call options.

Key Stories Impacting Clearwater Paper

Here are the key news stories impacting Clearwater Paper this week:

• Positive Sentiment: Royal Bank of Canada maintained an “outperform” rating on CLW while lowering its price target from $23 to $22. The revised target still implies substantial upside from recent trading levels, signaling that RBC views the current weakness as excessive. Royal Bank of Canada Clearwater Paper rating
• Positive Sentiment: Third-quarter net loss narrowed sharply to approximately $1.6 million, or $0.10 per share, from a $53.3 million loss a year earlier. Clearwater also reduced net debt to $260.7 million from $316.7 million at the end of 2025 and completed a refinancing of its debt, improving its financial position. Clearwater Paper third-quarter results
• Neutral Sentiment: Options activity was unusually high, with traders purchasing 5,097 call contracts—about 790% above average daily call volume. The activity may indicate speculative bullish interest, but options flows alone do not establish a sustained change in investor sentiment.
• Negative Sentiment: Reported quarterly EPS of $(0.23) missed the $(0.16) consensus estimate, while revenue of $384.9 million was below expectations of $388.4 million. Sales also declined from $399.0 million a year earlier, primarily because of lower market pricing. Clearwater Paper reports third-quarter 2026 results
• Negative Sentiment: Disruptions at the Augusta mill persisted late in the quarter, reducing volumes and increasing costs. Sales volume fell 1% year over year to 322,265 tons, while the average paperboard selling price dropped 4% to $1,111 per ton. These issues likely explain why the stock has decreased despite the year-over-year improvement in losses. Clearwater Paper Augusta mill disruptions

Clearwater Paper Stock Performance

NYSE:CLW traded down $6.02 during mid-day trading on Tuesday, hitting $13.20. 781,693 shares of the stock were exchanged, compared to its average volume of 197,629. Clearwater Paper has a fifty-two week low of $11.73 and a fifty-two week high of $23.59. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.17 and a current ratio of 2.29. The firm's 50-day simple moving average is $20.22 and its 200 day simple moving average is $17.26. The stock has a market capitalization of $212.92 million, a price-to-earnings ratio of -4.34 and a beta of 0.33.

Clearwater Paper (NYSE:CLW - Get Free Report) last released its quarterly earnings results on Monday, October 26th. The basic materials company reported ($0.23) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.07). Clearwater Paper had a negative net margin of 3.24% and a negative return on equity of 7.95%. The business had revenue of $384.90 million during the quarter, compared to analyst estimates of $388.39 million. As a group, equities analysts anticipate that Clearwater Paper will post -2.33 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on CLW shares. Truist Financial decreased their price target on shares of Clearwater Paper from $20.00 to $17.00 and set a "hold" rating on the stock in a research note on Tuesday. Bank of America upped their target price on shares of Clearwater Paper from $24.00 to $25.00 and gave the company a "neutral" rating in a research report on Friday, September 11th. Royal Bank Of Canada lowered their target price on shares of Clearwater Paper from $23.00 to $22.00 and set an "outperform" rating for the company in a research note on Tuesday. Weiss Ratings reiterated a "sell (d)" rating on shares of Clearwater Paper in a report on Wednesday, August 5th. Finally, Zacks Research raised shares of Clearwater Paper to a "hold" rating in a research report on Monday, July 6th. One analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $19.67.

Institutional Investors Weigh In On Clearwater Paper

Hedge funds have recently made changes to their positions in the stock. SummerHaven Investment Management LLC bought a new stake in shares of Clearwater Paper during the third quarter worth about $318,000. Farther Finance Advisors LLC grew its position in Clearwater Paper by 110.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,069 shares of the basic materials company's stock worth $40,000 after purchasing an additional 1,087 shares in the last quarter. Corient Private Wealth LP boosted its holdings in shares of Clearwater Paper by 2.4% in the 2nd quarter. Corient Private Wealth LP now owns 23,100 shares of the basic materials company's stock worth $362,000 after buying an additional 542 shares during the last quarter. Empowered Funds LLC purchased a new position in shares of Clearwater Paper during the 2nd quarter valued at $1,303,000. Finally, Jefferies Financial Group Inc. purchased a new position in shares of Clearwater Paper in the second quarter valued at $1,014,000. 89.98% of the stock is currently owned by institutional investors and hedge funds.

About Clearwater Paper

Clearwater Paper Corporation is a manufacturer of bleached paperboard and pulp products. Its paperboard is used in packaging applications such as folding cartons, food and beverage packaging, and other consumer and industrial products. The company also produces pulp used in the manufacture of paper and tissue products.

Clearwater Paper primarily serves customers in North America, supplying packaging manufacturers, consumer-products companies, and other converters. Its operations have included paper mills in the United States, including facilities in Idaho and Arkansas, with products marketed to a range of food, beverage, household, and commercial markets.

The company was formed in 2008 through the separation of Potlatch Corporation's pulp and paperboard businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.