Sylvamo (NYSE:SLVM) Shares Gap Down - Here's What Happened

Key Points

• Sylvamo shares gapped lower, opening at $32.79 versus a previous close of $34.02 and last trading near $31.78.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $46.75; targets range from $45 to $47 among recent coverage.
• Sylvamo slightly exceeded quarterly EPS expectations but missed revenue estimates, while maintaining a quarterly dividend of $0.45 per share, representing a 5.6% annualized yield.

Sylvamo Corporation (NYSE:SLVM - Get Free Report)'s share price gapped down before the market opened on Thursday. The stock had previously closed at $34.02, but opened at $32.79. Sylvamo shares last traded at $31.7760, with a volume of 20,153 shares trading hands.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SLVM. Zacks Research cut shares of Sylvamo from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 14th. Wells Fargo & Company assumed coverage on Sylvamo in a research note on Wednesday, September 16th. They issued an "overweight" rating and a $47.00 price objective on the stock. Bank of America restated a "neutral" rating and set a $45.00 target price on shares of Sylvamo in a research note on Tuesday, July 14th. Wall Street Zen raised shares of Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, Royal Bank Of Canada decreased 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 note on Friday, July 17th. Two 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 stock. According to data from MarketBeat, Sylvamo presently has a consensus rating of "Hold" and an average price target of $46.75.

Sylvamo Stock 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 stock has a market cap of $1.29 billion, a PE ratio of 17.19, a price-to-earnings-growth ratio of 1.22 and a beta of 0.86. The firm has a fifty day moving average price of $36.84 and a 200 day moving average price of $38.95.

Sylvamo (NYSE:SLVM - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.03 earnings per share for the quarter, topping 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 company had revenue of $806.00 million for the quarter, compared to the consensus estimate of $811.25 million. During the same quarter in the prior year, the company earned $0.37 EPS. Sylvamo's quarterly revenue was up 1.5% on a year-over-year basis. Research analysts forecast 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. The ex-dividend date is Friday, October 2nd. This represents a $1.80 dividend on an annualized basis and a yield of 5.6%. Sylvamo's dividend payout ratio is currently 95.74%.

Institutional Trading of Sylvamo

Hedge funds have recently bought and sold shares of the business. Allianz Asset Management GmbH increased its stake in Sylvamo by 15.8% during the second 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 during the last quarter. Tidal Investments LLC acquired a new stake in shares of Sylvamo during the 2nd quarter worth about $1,299,000. SG Americas Securities LLC grew its holdings in shares of Sylvamo by 8.3% during the first 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 during the last quarter. Rokos Capital Management LLP acquired a new position in shares of Sylvamo in the 1st quarter valued at $10,802,000. Finally, Dimensional Fund Advisors LP grew 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 worth $57,547,000 after purchasing an additional 72,177 shares during the last quarter. Institutional investors and hedge funds own 91.16% of the company's stock.

About Sylvamo

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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