Sylvamo (NYSE:SLVM) Sets New 52-Week Low - Time to Sell?

Key Points

• Sylvamo shares fell to a new 52-week low of $34.15, below both their 50-day and 200-day moving averages. Analysts have a consensus “Hold” rating and an average price target of $46.75, though ratings range from “Overweight” to “Strong Sell.”
• The company slightly exceeded quarterly EPS expectations, reporting $0.03 versus the $0.02 estimate, but revenue of $806 million fell short of forecasts and earnings declined sharply from $0.37 per share a year earlier.
• Sylvamo announced a quarterly dividend of $0.45 per share, equivalent to a 5.3% annualized yield, though its 95.74% payout ratio leaves limited earnings coverage. Institutional investors own approximately 91.16% of the company.

Shares of Sylvamo Corporation (NYSE:SLVM - Get Free Report) reached a new 52-week low during trading on Tuesday. The stock traded as low as $34.15 and last traded at $34.4330, with a volume of 27396 shares changing hands. The stock had previously closed at $34.98.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Royal Bank Of Canada cut their price target on shares of Sylvamo from $49.00 to $46.00 and set a "sector perform" rating for the company in a research report on Friday, July 17th. Bank of America restated a "neutral" rating and set a $45.00 price target on shares of Sylvamo in a research report on Tuesday, July 14th. Wells Fargo & Company began coverage on Sylvamo in a research report on Wednesday, September 16th. They issued an "overweight" rating and a $47.00 price objective for the company. Zacks Research lowered Sylvamo from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 14th. Finally, Wall Street Zen upgraded shares of Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $46.75.

Sylvamo Price Performance

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 business has a 50-day simple moving average of $37.00 and a 200 day simple moving average of $39.08. The firm has a market cap of $1.36 billion, a P/E ratio of 18.24, a price-to-earnings-growth ratio of 1.29 and a beta of 0.86.

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

Sylvamo Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Friday, October 2nd will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 5.3%. The ex-dividend date of this dividend is Friday, October 2nd. Sylvamo's payout ratio is presently 95.74%.

Hedge Funds Weigh In On Sylvamo

Hedge funds and other institutional investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP lifted its position in Sylvamo by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company's stock valued at $57,547,000 after acquiring an additional 72,177 shares during the period. State Street Corp increased its stake 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 purchasing an additional 69,299 shares in the last quarter. Allianz Asset Management GmbH lifted its holdings in shares of Sylvamo by 15.8% during the second quarter. Allianz Asset Management GmbH now owns 506,147 shares of the company's stock valued at $19,132,000 after purchasing an additional 69,195 shares during the last quarter. Rokos Capital Management LLP purchased a new position in shares of Sylvamo during the first quarter valued at approximately $10,802,000. Finally, SG Americas Securities LLC boosted its position in shares of Sylvamo by 8.3% in the 1st quarter. SG Americas Securities LLC now owns 242,221 shares of the company's stock worth $10,231,000 after purchasing an additional 18,653 shares in the last quarter. Hedge funds and other institutional investors 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, education, office applications, books, envelopes and other everyday communications. Its portfolio includes consumer and business paper brands such as Hammermill, along with products sold under regional and private-label brands.

Sylvamo serves customers through operations and distribution networks in North America, Latin America and Europe. Its products are sold to merchants, retailers, businesses, publishers, printers and other commercial customers.

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