Sylvamo (NYSE:SLVM) Sets New 12-Month Low - Should You Sell?

Key Points

• Sylvamo shares hit a new 52-week low at $31.58, trading below their 50-day and 200-day moving averages. The stock has a $1.29 billion market capitalization and a beta of 0.87.
• Analyst sentiment is mixed, with two Buy, two Hold, and two Sell ratings; the overall consensus is Hold, with an average price target of $46.75.
• The company narrowly exceeded quarterly EPS expectations, reporting $0.03 versus $0.02, while revenue reached $806 million. Sylvamo also declared a $0.45 quarterly dividend, equivalent to a 5.6% annual yield, though its payout ratio is high at 95.74%.

Sylvamo Corporation (NYSE:SLVM - Get Free Report) hit a new 52-week low during trading on Monday. The company traded as low as $31.58 and last traded at $32.2810, with a volume of 361637 shares traded. The stock had previously closed at $32.48.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Sylvamo in a report on Friday, August 7th. Truist Financial reissued a "buy" rating and set a $49.00 price target (down from $51.00) on shares of Sylvamo in a report on Monday, August 10th. Royal Bank Of Canada dropped their price target on shares of Sylvamo from $49.00 to $46.00 and set a "sector perform" rating on the stock in a research report on Friday, July 17th. Wall Street Zen raised shares of Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, Wells Fargo & Company assumed coverage on shares of Sylvamo in a research report on Wednesday, September 16th. They issued an "overweight" rating and a $47.00 price objective for the company. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Sylvamo presently has a consensus rating of "Hold" and a consensus price target of $46.75.

Sylvamo Stock Performance

The firm has a market cap of $1.29 billion, a PE ratio of 17.20, a PEG ratio of 1.17 and a beta of 0.87. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.80 and a current ratio of 1.47. The firm's 50 day moving average price is $36.63 and its two-hundred day moving average price is $38.83.

Sylvamo (NYSE:SLVM - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported $0.03 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.01. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. The firm had revenue of $806.00 million during the quarter, compared to the consensus estimate of $811.25 million. During the same quarter last year, the firm earned $0.37 EPS. The firm's revenue for the quarter was up 1.5% on a year-over-year basis. On average, research analysts forecast that Sylvamo Corporation will post 1.53 earnings per share for the current year.

Sylvamo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, October 2nd will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.6%. Sylvamo's payout ratio is currently 95.74%.

Hedge Funds Weigh In On Sylvamo

A number of institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp lifted its holdings in shares of Sylvamo by 5.2% in the 2nd quarter. State Street Corp now owns 1,389,749 shares of the company's stock valued at $52,533,000 after purchasing an additional 69,299 shares during the last quarter. Sequoia Financial Advisors LLC acquired a new position in shares of Sylvamo in the 2nd quarter valued at $224,000. Tidal Investments LLC purchased a new stake in shares of Sylvamo during the second quarter worth approximately $1,299,000. Engineers Gate Manager LP lifted its holdings in shares of Sylvamo by 115.8% during the second quarter. Engineers Gate Manager LP now owns 15,757 shares of the company's stock worth $596,000 after purchasing an additional 8,457 shares during the period. Finally, Squarepoint Ops LLC acquired a new position in Sylvamo in the 2nd quarter valued at $746,000. Institutional investors and hedge funds own 91.16% of the company's stock.

Sylvamo Company Profile

Sylvamo Corporation NYSE: SLVM is a global producer of uncoated paper products. The company manufactures paper used for printing, writing, copying, office applications, and other commercial and industrial purposes. Its portfolio includes cut-size office paper, offset and publishing papers, and specialty paper products sold under brands such as Hammermill, Springhill, and Williamsburg.

Headquartered in Memphis, Tennessee, Sylvamo serves customers through operations and sales networks in North America, Latin America, and Europe.

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