Sylvamo (NYSE:SLVM) Stock Price Down 6.2% - Here's What Happened

Key Points

• Sylvamo shares fell 6.2% to about $30.62 in midday trading, with volume roughly 90% below the average session level.
• Analyst sentiment remains mixed: the stock carries an overall “Hold” rating and a consensus price target of $46.75, despite bullish ratings from Wells Fargo and Truist and a “strong sell” downgrade from Zacks Research.
• Sylvamo reported quarterly EPS of $0.03, ahead of estimates, while revenue reached $806 million and rose 1.5% year over year. The company also declared a $0.45 quarterly dividend, implying a 5.7% yield.

Sylvamo Corporation (NYSE:SLVM - Get Free Report) fell 6.2% during mid-day trading on Monday. The company traded as low as $30.57 and last traded at $30.6150. Approximately 34,839 shares were traded during trading, a decline of 90% from the average session volume of 332,811 shares. The stock had previously closed at $32.65.

Analyst Upgrades and Downgrades

SLVM has been the topic of a number of research reports. Wells Fargo & Company began coverage on shares of Sylvamo in a report on Wednesday, September 16th. They issued an "overweight" rating and a $47.00 price target on the stock. Truist Financial reissued a "buy" rating and set a $49.00 price objective (down from $51.00) on shares of Sylvamo in a report on Monday, August 10th. Wall Street Zen raised Sylvamo from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Zacks Research downgraded Sylvamo from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 14th. Finally, Bank of America restated a "neutral" rating and issued a $45.00 target price on shares of Sylvamo in a research note on Tuesday, July 14th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $46.75.

Sylvamo Price Performance

The business has a fifty day moving average of $36.11 and a 200-day moving average of $38.60. The firm has a market cap of $1.25 billion, a PE ratio of 16.69, a PEG ratio of 1.17 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.

Sylvamo (NYSE:SLVM - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.03 EPS for the quarter, beating 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 firm had revenue of $806.00 million during the quarter, compared to the consensus estimate of $811.25 million. During the same period last year, the firm earned $0.37 EPS. The business's quarterly revenue was up 1.5% compared to the same quarter last year. As a group, research analysts predict that Sylvamo Corporation will post 1.53 earnings per share for the current year.

Sylvamo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders 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 annualized dividend and a dividend yield of 5.7%. Sylvamo's dividend payout ratio (DPR) is 95.74%.

Institutional Trading of Sylvamo

A number of hedge funds have recently made changes to their positions in the stock. Farther Finance Advisors LLC lifted its stake in Sylvamo by 68.8% during the third quarter. Farther Finance Advisors LLC now owns 1,094 shares of the company's stock worth $36,000 after purchasing an additional 446 shares during the last quarter. State Street Corp increased its position in shares of Sylvamo by 5.2% during the 2nd 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 during the last quarter. Sequoia Financial Advisors LLC bought a new position in shares of Sylvamo during the 2nd quarter valued at about $224,000. Tidal Investments LLC bought a new position in shares of Sylvamo during the 2nd quarter valued at about $1,299,000. Finally, Engineers Gate Manager LP raised its holdings in shares of Sylvamo by 115.8% during the 2nd quarter. Engineers Gate Manager LP now owns 15,757 shares of the company's stock valued at $596,000 after buying an additional 8,457 shares in the last quarter. 91.16% of the stock is owned by institutional investors.

Sylvamo Company Profile

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.

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