Sylvamo (NYSE:SLVM) Hits New 1-Year Low - Should You Sell?

Key Points

• Sylvamo shares hit a new 52-week low of $35.28 and were trading down 2.4%, below both their 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the stock has a consensus rating of “Reduce” with an average price target of $46.67, while recent firms have cut targets and Zacks Research downgraded it to “strong sell.”
• Sylvamo slightly beat quarterly EPS estimates at $0.03 versus $0.02, but revenue of $806 million fell short of expectations and earnings declined sharply from $0.37 per share a year earlier.

Sylvamo Corporation (NYSE:SLVM - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $35.28 and last traded at $35.5650, with a volume of 11449 shares traded. The stock had previously closed at $35.92.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Bank of America restated a "neutral" rating and issued a $45.00 price objective on shares of Sylvamo in a research note on Tuesday, July 14th. Truist Financial reiterated a "buy" rating and issued a $49.00 target price (down from $51.00) on shares of Sylvamo in a report on Monday, August 10th. Royal Bank Of Canada decreased their price target on shares of Sylvamo from $49.00 to $46.00 and set a "sector perform" rating for the company in a report on Friday, July 17th. Weiss Ratings reissued a "sell (d+)" rating on shares of Sylvamo in a research report on Friday, August 7th. Finally, Zacks Research lowered Sylvamo from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 14th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $46.67.

Sylvamo Trading Down 2.4%

The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of 18.65, a P/E/G ratio of 1.31 and a beta of 0.87. The business has a 50-day moving average of $38.14 and a two-hundred day moving average of $40.73. The company has a quick ratio of 0.80, a current ratio of 1.47 and a debt-to-equity ratio of 0.88.

Sylvamo (NYSE:SLVM - Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The company reported $0.03 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.01. The company had revenue of $806.00 million during the quarter, compared to the consensus estimate of $811.25 million. Sylvamo had a return on equity of 8.36% and a net margin of 2.31%.The company's quarterly revenue was up 1.5% on a year-over-year basis. During the same quarter last year, the company earned $0.37 EPS. Research analysts predict that Sylvamo Corporation will post 1.53 EPS for the current fiscal year.

Insider Transactions at Sylvamo

In other news, Director Lizanne M. Bruce sold 1,230 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $41.70, for a total value of $51,291.00. Following the completion of the transaction, the director owned 14,475 shares in the company, valued at approximately $603,607.50. This represents a 7.83% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.81% of the stock is owned by company insiders.

Institutional Trading of Sylvamo

Institutional investors have recently made changes to their positions in the business. Millennium Management LLC lifted its stake in Sylvamo by 605.9% during the fourth quarter. Millennium Management LLC now owns 2,233,209 shares of the company's stock worth $107,529,000 after purchasing an additional 1,916,829 shares during the period. Nomura Holdings Inc. grew its stake in shares of Sylvamo by 34.1% in the 3rd quarter. Nomura Holdings Inc. now owns 2,150,000 shares of the company's stock valued at $95,073,000 after purchasing an additional 546,336 shares during the period. California State Teachers Retirement System raised its holdings in shares of Sylvamo by 3,572.4% in the 2nd quarter. California State Teachers Retirement System now owns 1,545,113 shares of the company's stock worth $58,405,000 after buying an additional 1,503,039 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Sylvamo by 5.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company's stock worth $57,547,000 after buying an additional 72,177 shares in the last quarter. Finally, State Street Corp lifted its position in shares of Sylvamo by 2.6% during the 4th quarter. State Street Corp now owns 1,341,850 shares of the company's stock worth $64,610,000 after buying an additional 34,551 shares during the period. 91.16% of the stock is currently owned by institutional investors and hedge funds.

About Sylvamo

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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