Sylvamo (NYSE:SLVM) Shares Gap Up After Strong Earnings

Key Points

• Sylvamo shares surged after earnings, rising from a prior close of $33.07 to trade near $40.10 after opening at $37.89.
• Quarterly EPS of $1.33 beat the $1.13 consensus, but revenue of $645 million fell short of estimates and declined 23.8% year over year.
• The company’s quarterly dividend is $0.45 per share, equivalent to a 4.4% yield; analysts’ consensus rating is Hold, with an average price target of $41.

Sylvamo Corporation (NYSE:SLVM - Get Free Report)'s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $33.07, but opened at $37.89. Sylvamo shares last traded at $40.1040, with a volume of 115,691 shares trading hands.

The company reported $1.33 EPS for the quarter, topping the consensus estimate of $1.13 by $0.20. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. The business had revenue of $645.00 million for the quarter, compared to the consensus estimate of $817.79 million. During the same period last year, the company earned $1.44 EPS. The firm's revenue was down 23.8% compared to the same quarter last year.

Sylvamo Announces Dividend

The firm 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 4.4%. The ex-dividend date was Friday, October 2nd. Sylvamo's payout ratio is 95.74%.

Analyst Ratings Changes

A number of research firms recently weighed in on SLVM. Wall Street Zen upgraded Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Royal Bank Of Canada cut their target price on Sylvamo from $46.00 to $35.00 and set a "sector perform" rating on the stock in a report on Friday, October 16th. Zacks Research raised Sylvamo from a "strong sell" rating to a "hold" rating in a report on Monday, October 12th. Wells Fargo & Company started coverage on Sylvamo in a research report on Wednesday, September 16th. They issued an "overweight" rating and a $47.00 price target on the stock. Finally, Bank of America decreased their price target on Sylvamo from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, October 14th. 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 stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $41.00.

Institutional Investors Weigh In On Sylvamo

Several large investors have recently modified their holdings of SLVM. Nykredit A S bought a new stake in Sylvamo during the second quarter valued at $33,000. Farther Finance Advisors LLC grew its holdings 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 acquiring an additional 446 shares during the period. Signaturefd LLC grew its holdings in Sylvamo by 54.9% during the 3rd quarter. Signaturefd LLC now owns 1,380 shares of the company's stock worth $45,000 after acquiring an additional 489 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of Sylvamo in the 2nd quarter worth about $68,000. Finally, Versant Capital Management Inc raised its position in shares of Sylvamo by 378.3% in the 2nd quarter. Versant Capital Management Inc now owns 2,645 shares of the company's stock worth $100,000 after acquiring an additional 2,092 shares in the last quarter. 91.16% of the stock is currently owned by institutional investors and hedge funds.

Sylvamo Stock Performance

The stock has a market capitalization of $1.62 billion, a P/E ratio of 21.65, a price-to-earnings-growth ratio of 1.58 and a beta of 0.87. 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 50-day moving average price of $33.95 and a two-hundred day moving average price of $39.82.

About Sylvamo

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.

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.