Royal Bank Of Canada Has Lowered Expectations for Sylvamo (NYSE:SLVM) Stock Price

Key Points

• Royal Bank of Canada lowered its price target on Sylvamo from $50 to $49 while keeping a sector perform rating, implying modest upside from current levels.
• Sylvamo’s latest earnings missed expectations, with EPS of -$0.53 versus the expected -$0.25, even though revenue of $755 million came in slightly above estimates.
• The stock traded around $42.05 after rising 2.3%, and Wall Street’s overall view remains Hold with an average price target of $54.

Sylvamo (NYSE:SLVM - Get Free Report) had its price objective dropped by equities researchers at Royal Bank Of Canada from $50.00 to $49.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective suggests a potential upside of 16.54% from the stock's current price.

Several other equities analysts have also commented on SLVM. Weiss Ratings restated a "hold (c)" rating on shares of Sylvamo in a report on Wednesday, January 21st. Zacks Research raised Sylvamo from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Truist Financial began coverage on Sylvamo in a research note on Monday, March 30th. They set a "buy" rating and a $54.00 price target on the stock. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $54.00.

Sylvamo Trading Up 2.3%

Shares of Sylvamo stock traded up $0.95 during trading hours on Monday, hitting $42.05. The company's stock had a trading volume of 80,735 shares, compared to its average volume of 337,727. The firm has a fifty day moving average of $42.60 and a 200-day moving average of $45.97. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.81 and a current ratio of 1.45. The stock has a market cap of $1.67 billion, a price-to-earnings ratio of 16.62, a P/E/G ratio of 0.50 and a beta of 0.91. Sylvamo has a twelve month low of $37.09 and a twelve month high of $57.65.

Sylvamo (NYSE:SLVM - Get Free Report) last posted its earnings results on Friday, May 8th. The company reported ($0.53) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.28). The company had revenue of $755.00 million during the quarter, compared to analyst estimates of $740.85 million. Sylvamo had a net margin of 3.11% and a return on equity of 9.79%. The company's quarterly revenue was down 8.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.68 EPS. Research analysts forecast that Sylvamo will post 2.75 EPS for the current year.

Insiders Place Their Bets

In other Sylvamo news, SVP Rodrigo Davoli sold 3,250 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $46.46, for a total transaction of $150,995.00. Following the sale, the senior vice president directly owned 46,484 shares in the company, valued at $2,159,646.64. This represents a 6.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sylvamo

Large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP grew its position in shares of Sylvamo by 5.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company's stock worth $57,547,000 after buying an additional 72,177 shares in the last quarter. Allspring Global Investments Holdings LLC raised its holdings in Sylvamo by 11.2% in the first quarter. Allspring Global Investments Holdings LLC now owns 11,709 shares of the company's stock valued at $500,000 after acquiring an additional 1,177 shares in the last quarter. Illinois Municipal Retirement Fund raised its holdings in Sylvamo by 3.9% in the first quarter. Illinois Municipal Retirement Fund now owns 17,932 shares of the company's stock valued at $757,000 after acquiring an additional 666 shares in the last quarter. Advisors Preferred LLC purchased a new position in Sylvamo in the first quarter worth approximately $1,335,000. Finally, Fifth Third Bancorp grew its holdings in Sylvamo by 3,457.1% during the 1st quarter. Fifth Third Bancorp now owns 19,244 shares of the company's stock worth $813,000 after acquiring an additional 18,703 shares in the last quarter. Hedge funds and other institutional investors own 91.16% of the company's stock.

Sylvamo Company Profile

Sylvamo Corporation, trading on the New York Stock Exchange under the ticker SLVM, is a leading global producer of uncoated freesheet paper. The company was established in October 2021 through a spin-off from International Paper, creating an independent entity focused exclusively on the development, manufacturing and marketing of high-quality uncoated paper products. Headquartered in Memphis, Tennessee, Sylvamo draws on decades of industry experience inherited from its predecessor, positioning itself to meet evolving customer needs in paper-based communications and packaging applications.

The company’s core product portfolio includes office and digital print papers, direct mail and marketing materials, catalog and commercial printing papers, and a range of specialty and value-added grades.

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