Sylvamo (NYSE:SLVM) Hits New 12-Month Low - Here's Why

Key Points

• Sylvamo Corporation's stock has reached a new 52-week low at $47.78, down from its previous close of $48.50.
• Analyst ratings have been downgraded, with Royal Bank of Canada reducing their price target from $70.00 to $61.00 and Bank of America lowering theirs from $67.00 to $64.00.
• The company's quarterly earnings report showed earnings of $0.68 per share, missing estimates by $0.02, and marked a 9.3% decline in revenue year-over-year.

Sylvamo Corporation (NYSE:SLVM - Get Free Report)'s share price hit a new 52-week low on Tuesday . The stock traded as low as $47.78 and last traded at $47.84, with a volume of 48123 shares trading hands. The stock had previously closed at $48.50.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Bank of America cut their price objective on Sylvamo from $67.00 to $64.00 and set an "underperform" rating for the company in a report on Wednesday, July 9th. Royal Bank Of Canada cut their price objective on Sylvamo from $70.00 to $61.00 and set a "sector perform" rating for the company in a report on Monday, May 12th.

Sylvamo Stock Performance

The company has a debt-to-equity ratio of 0.87, a current ratio of 1.64 and a quick ratio of 1.04. The firm has a market capitalization of $1.84 billion, a PE ratio of 6.61, a P/E/G ratio of 1.81 and a beta of 1.00. The firm has a fifty day moving average price of $51.19 and a 200 day moving average price of $61.20.

Sylvamo (NYSE:SLVM - Get Free Report) last issued its quarterly earnings results on Friday, May 9th. The company reported $0.68 earnings per share for the quarter, missing analysts' consensus estimates of $0.70 by ($0.02). The company had revenue of $821.00 million during the quarter, compared to analysts' expectations of $819.61 million. Sylvamo had a return on equity of 32.60% and a net margin of 7.71%. The company's revenue for the quarter was down 9.3% compared to the same quarter last year. During the same period in the prior year, the business posted $1.07 EPS. Research analysts anticipate that Sylvamo Corporation will post 7.45 earnings per share for the current fiscal year.

Sylvamo Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 29th. Investors of record on Tuesday, July 8th were paid a $0.45 dividend. The ex-dividend date of this dividend was Tuesday, July 8th. This represents a $1.80 dividend on an annualized basis and a yield of 4.0%. Sylvamo's dividend payout ratio (DPR) is currently 26.32%.

Institutional Investors Weigh In On Sylvamo

Several hedge funds have recently bought and sold shares of SLVM. Covestor Ltd lifted its stake in Sylvamo by 464.5% in the 4th quarter. Covestor Ltd now owns 779 shares of the company's stock worth $62,000 after acquiring an additional 641 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in Sylvamo in the 1st quarter worth about $61,000. Blue Trust Inc. lifted its stake in Sylvamo by 54.0% in the 2nd quarter. Blue Trust Inc. now owns 1,209 shares of the company's stock worth $61,000 after acquiring an additional 424 shares in the last quarter. DRW Securities LLC purchased a new stake in Sylvamo in the 4th quarter worth about $225,000. Finally, First Citizens Bank & Trust Co. purchased a new stake in Sylvamo in the 1st quarter worth about $200,000. 91.16% of the stock is owned by hedge funds and other institutional investors.

About Sylvamo

Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and graphic and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers.