Sylvamo (NYSE:SLVM) Sets New 52-Week Low After Analyst Downgrade

Key Points

• Sylvamo shares hit a new 52-week low of $30.40 after Truist Financial cut its price target from $49 to $40, though it maintained a Buy rating.
• Analyst sentiment is mixed, with two Buy, two Hold, and two Sell ratings; the consensus rating is Hold with an average price target of $44.50.
• Sylvamo reported quarterly EPS of $0.03, slightly above estimates, and declared a $0.45-per-share quarterly dividend, representing a 5.8% annualized yield.

Sylvamo Corporation (NYSE:SLVM - Get Free Report) reached a new 52-week low during trading on Tuesday after Truist Financial lowered their price target on the stock from $49.00 to $40.00. Truist Financial currently has a buy rating on the stock. Sylvamo traded as low as $30.40 and last traded at $31.2360, with a volume of 306,675 shares traded. The stock had previously closed at $32.65.

SLVM has been the subject of a number of other reports. Royal Bank Of Canada reduced their target price 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. Zacks Research lowered shares of Sylvamo from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 14th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Sylvamo in a report on Friday, August 7th. Wall Street Zen raised Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, Wells Fargo & Company started coverage on Sylvamo in a research report on Wednesday, September 16th. They set an "overweight" rating and a $47.00 price objective for the company. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Sylvamo presently has a consensus rating of "Hold" and an average price target of $44.50.

Hedge Funds Weigh In On Sylvamo

Institutional investors have recently bought and sold shares of the stock. State Street Corp grew its holdings in shares of Sylvamo by 5.2% during the second quarter. State Street Corp now owns 1,389,749 shares of the company's stock valued at $52,533,000 after buying an additional 69,299 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in 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 acquiring an additional 72,177 shares in the last quarter. Allianz Asset Management GmbH lifted its stake in Sylvamo by 15.8% in the 2nd quarter. Allianz Asset Management GmbH now owns 506,147 shares of the company's stock worth $19,132,000 after acquiring an additional 69,195 shares in the last quarter. Rokos Capital Management LLP purchased a new stake in Sylvamo in the 1st quarter worth about $10,802,000. Finally, SG Americas Securities LLC boosted its position in Sylvamo by 8.3% during the 1st quarter. SG Americas Securities LLC now owns 242,221 shares of the company's stock worth $10,231,000 after acquiring an additional 18,653 shares during the period. Hedge funds and other institutional investors own 91.16% of the company's stock.

Sylvamo Price Performance

The company has a current ratio of 1.47, a quick ratio of 0.80 and a debt-to-equity ratio of 0.88. The stock has a 50-day simple moving average of $35.96 and a 200 day simple moving average of $38.54. The stock has a market capitalization of $1.24 billion, a price-to-earnings ratio of 16.61, a price-to-earnings-growth ratio of 1.17 and a beta of 0.87.

Sylvamo (NYSE:SLVM - Get Free Report) last issued its earnings results on Friday, August 7th. The company reported $0.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.01. The company had revenue of $806.00 million for 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 firm's quarterly revenue was up 1.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.37 EPS. On average, equities research analysts forecast that Sylvamo Corporation will post 1.53 EPS for the current fiscal year.

Sylvamo Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors 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 yield of 5.8%. Sylvamo's payout ratio is presently 95.74%.

About Sylvamo

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.

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.