Sylvamo Corporation (NYSE:SLVM) Given Average Rating of "Reduce" by Brokerages

Key Points

• Brokerages have given Sylvamo a consensus rating of "Reduce", with two sell ratings, two holds, and one buy; the average 12-month price target is $47.33.
• The company recently reported weaker-than-expected earnings, posting EPS of -$0.53 versus estimates of -$0.25, though revenue came in slightly above expectations at $755 million.
• Sylvamo also declared a quarterly dividend of $0.45 per share, equal to an annualized yield of about 4.7%, while its stock traded near $38.27, below its 200-day average of $43.03.

Shares of Sylvamo Corporation (NYSE:SLVM - Get Free Report) have been given a consensus rating of "Reduce" by the five brokerages that are covering the company, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, two have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $47.3333.

SLVM has been the topic of a number of recent research reports. Truist Financial reduced their target price on Sylvamo from $54.00 to $51.00 and set a "buy" rating on the stock in a research note on Wednesday, July 15th. Weiss Ratings downgraded Sylvamo from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Royal Bank Of Canada decreased their price objective on Sylvamo from $49.00 to $46.00 and set a "sector perform" rating on the stock in a research note on Friday, July 17th. Bank of America reiterated a "neutral" rating and set a $45.00 price objective on shares of Sylvamo in a research report on Tuesday, July 14th. Finally, Wall Street Zen downgraded shares of Sylvamo from a "hold" rating to a "sell" rating in a research note on Saturday.

Sylvamo Stock Performance

Shares of SLVM opened at $38.27 on Friday. The company has a current ratio of 1.45, a quick ratio of 0.81 and a debt-to-equity ratio of 0.78. The stock has a market cap of $1.52 billion, a P/E ratio of 15.13, a PEG ratio of 0.83 and a beta of 0.87. The company has a 50-day moving average of $38.77 and a two-hundred day moving average of $43.03. Sylvamo has a 12-month low of $35.53 and a 12-month high of $56.80.

Sylvamo (NYSE:SLVM - Get Free Report) last released its quarterly earnings results on Friday, May 8th. The company reported ($0.53) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.28). Sylvamo had a net margin of 3.11% and a return on equity of 9.79%. The business had revenue of $755.00 million during the quarter, compared to analyst estimates of $740.85 million. During the same quarter in the prior year, the company earned $0.68 earnings per share. The firm's revenue for the quarter was down 8.0% compared to the same quarter last year. As a group, research analysts predict that Sylvamo will post 2.2 EPS for the current fiscal year.

Sylvamo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 28th. Stockholders of record on Tuesday, July 7th will be issued a dividend of $0.45 per share. The ex-dividend date is Tuesday, July 7th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 4.7%. Sylvamo's payout ratio is 71.15%.

Insider Buying and Selling at Sylvamo

In related news, Director Lizanne M. Bruce sold 1,230 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $41.70, for a total transaction of $51,291.00. Following the transaction, the director owned 14,475 shares of the company's stock, valued at approximately $603,607.50. This represents a 7.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.81% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of SLVM. UMB Bank n.a. boosted its holdings in shares of Sylvamo by 171.2% during the fourth quarter. UMB Bank n.a. now owns 564 shares of the company's stock worth $27,000 after purchasing an additional 356 shares during the last quarter. GAMMA Investing LLC increased its stake in Sylvamo by 222.8% in the fourth quarter. GAMMA Investing LLC now owns 765 shares of the company's stock valued at $37,000 after purchasing an additional 528 shares during the last quarter. International Assets Investment Management LLC acquired a new position in Sylvamo in the fourth quarter valued at $38,000. Farther Finance Advisors LLC lifted its position in Sylvamo by 162.7% during the fourth quarter. Farther Finance Advisors LLC now owns 838 shares of the company's stock worth $40,000 after buying an additional 519 shares during the period. Finally, Advisory Services Network LLC purchased a new position in Sylvamo during the third quarter worth about $38,000. 91.16% of the stock is currently owned by institutional investors and hedge funds.

About Sylvamo

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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