Sylvamo (NYSE:SLVM) Share Price Crosses Above Fifty Day Moving Average - Should You Sell?

Key Points

• Sylvamo shares rose above their 50-day moving average, trading as high as $41.16 and last at about $39.70.
• Third-quarter EPS of $1.33 beat analyst estimates, but revenue of $645 million fell well short of forecasts and declined 23.8% year over year.
• Sylvamo is pursuing a potential sale of its European operations, with a deal closing targeted for Q1 2027; analysts’ average rating is Hold, with a $41 consensus price target.

Sylvamo Corporation (NYSE:SLVM - Get Free Report) shares passed above its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $34.01 and traded as high as $41.16. Sylvamo shares last traded at $39.7010, with a volume of 848,136 shares.

Key Stories Impacting Sylvamo

Here are the key news stories impacting Sylvamo this week:

• Positive Sentiment: Sylvamo reported third-quarter earnings of $1.33 per share, above analyst estimates of roughly $1.04–$1.13. The earnings surprise likely helped lift investor sentiment. Sylvamo Surpasses Q3 Earnings Estimates
• Positive Sentiment: The company entered a put option agreement for a potential sale of its European operations to Midas Atlantic Partners and The Najafi Companies. The proposed deal covers its mills in France and Sweden, plus related forestry and support operations; closing is expected in Q1 2027, subject to required processes. A divestiture could let Sylvamo focus its business, though terms and proceeds were not disclosed in the provided reports. Sylvamo Announces Plans to Sell Europe Business
• Negative Sentiment: Revenue was $645 million, well below the cited analyst estimate of $817.79 million and down 23.8% year over year. EPS also declined from $1.44 in the year-ago quarter, highlighting pressure on the business despite the estimate beat. Sylvamo Q3 Earnings Results

Wall Street Analyst Weigh In

SLVM has been the subject of several recent analyst reports. Truist Financial decreased their target price on Sylvamo from $49.00 to $40.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Bank of America reduced their price objective on shares of Sylvamo from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, October 14th. Wall Street Zen raised Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Royal Bank Of Canada decreased their price objective on shares of Sylvamo from $46.00 to $35.00 and set a "sector perform" rating for the company in a research report on Friday, October 16th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Sylvamo in a research report on Wednesday. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $41.00.

Sylvamo Stock Performance

The business has a fifty day moving average of $34.01 and a 200-day moving average of $39.77. 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 company has a market cap of $1.58 billion, a PE ratio of 21.12, a P/E/G ratio of 1.56 and a beta of 0.87.

Sylvamo (NYSE:SLVM - Get Free Report) last posted its quarterly earnings results on Friday, November 6th. The company reported $1.33 earnings per share for the quarter, topping analysts' consensus estimates of $1.13 by $0.20. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. The firm had revenue of $645.00 million for the quarter, compared to analyst estimates of $817.79 million. During the same period in the previous year, the business posted $1.44 earnings per share. Sylvamo's quarterly revenue was down 23.8% on a year-over-year basis. Equities research analysts anticipate that Sylvamo Corporation will post 1.32 earnings per share for the current fiscal year.

Sylvamo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Friday, October 2nd were issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend was Friday, October 2nd. Sylvamo's dividend payout ratio is 95.74%.

Institutional Trading of Sylvamo

Hedge funds have recently bought and sold shares of the stock. Nykredit A S acquired a new stake in Sylvamo in the second quarter valued at $33,000. Farther Finance Advisors LLC raised its stake in Sylvamo by 68.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 1,094 shares of the company's stock worth $36,000 after buying an additional 446 shares during the period. Signaturefd LLC lifted its position in shares of Sylvamo by 54.9% during the 3rd quarter. Signaturefd LLC now owns 1,380 shares of the company's stock valued at $45,000 after acquiring an additional 489 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of Sylvamo during the 2nd quarter valued at $68,000. Finally, Versant Capital Management Inc raised its holdings in Sylvamo by 378.3% during the 2nd quarter. Versant Capital Management Inc now owns 2,645 shares of the company's stock valued at $100,000 after acquiring an additional 2,092 shares during the period. Hedge funds and other institutional investors own 91.16% of the company's stock.

Sylvamo Company Profile

Sylvamo Corporation is a global producer of uncoated paper products. The company manufactures papers used for printing, copying, writing, publishing, commercial applications, notebooks, envelopes and other everyday communication needs. Its portfolio includes branded and private-label products serving businesses, retailers, publishers, printers and consumers.

Sylvamo operates paper mills and related facilities in North America, Latin America and Europe, with products sold to customers in numerous markets worldwide.

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