Royal Bank Of Canada Cuts Clearwater Paper (NYSE:CLW) Price Target to $36.00

Key Points

• Royal Bank of Canada has reduced its price target for Clearwater Paper from $37.00 to $36.00, maintaining an "outperform" rating which indicates a potential upside of 35.59% from the current stock price.
• Clearwater Paper shares are trading down 9.8% at $26.55, following a disappointing earnings report which included a loss of $0.36 per share, significantly missing analysts' expectations.
• Institutional investors have recently shown strong interest in Clearwater Paper, with hedge funds owning 89.98% of the company's stock, reflecting a significant increase in stakes by various investment groups.

Clearwater Paper (NYSE:CLW - Get Free Report) had its target price dropped by Royal Bank Of Canada from $37.00 to $36.00 in a report issued on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the basic materials company's stock. Royal Bank Of Canada's target price points to a potential upside of 61.42% from the stock's previous close.

Separately, Wall Street Zen cut Clearwater Paper from a "hold" rating to a "sell" rating in a research note on Saturday, July 12th.

Clearwater Paper Price Performance

Shares of NYSE:CLW opened at $22.30 on Wednesday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.97 and a quick ratio of 0.87. The company has a market capitalization of $359.06 million, a PE ratio of 1.85 and a beta of 0.08. Clearwater Paper has a 1-year low of $21.93 and a 1-year high of $53.12. The business has a fifty day moving average price of $28.46 and a 200-day moving average price of $27.48.

Clearwater Paper (NYSE:CLW - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The basic materials company reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.73 by ($0.51). Clearwater Paper had a net margin of 12.98% and a negative return on equity of 4.11%. The business had revenue of $391.80 million during the quarter, compared to analysts' expectations of $397.00 million.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in Clearwater Paper by 1.9% during the first quarter. Vanguard Group Inc. now owns 1,142,392 shares of the basic materials company's stock valued at $28,982,000 after acquiring an additional 20,936 shares in the last quarter. Nuveen LLC purchased a new position in Clearwater Paper during the first quarter valued at approximately $15,314,000. Readystate Asset Management LP raised its position in Clearwater Paper by 56.7% during the first quarter. Readystate Asset Management LP now owns 580,856 shares of the basic materials company's stock valued at $14,736,000 after acquiring an additional 210,141 shares in the last quarter. Millennium Management LLC raised its position in Clearwater Paper by 1,102.7% during the fourth quarter. Millennium Management LLC now owns 429,264 shares of the basic materials company's stock valued at $12,779,000 after acquiring an additional 393,572 shares in the last quarter. Finally, D. E. Shaw & Co. Inc. raised its position in Clearwater Paper by 101.4% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 388,339 shares of the basic materials company's stock valued at $11,561,000 after acquiring an additional 195,487 shares in the last quarter. 89.98% of the stock is currently owned by hedge funds and other institutional investors.

Clearwater Paper Company Profile

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting.