Sylvamo (NYSE:SLVM) Shares Up 5.9% - Time to Buy?

Key Points

• Shares jumped ~5.9% to $43.59 on Monday, but the move occurred on light volume (94,204 shares traded, down about 71% from the average), suggesting the rally came on low liquidity.
• Analysts are mixed — Sylvamo has an average rating of "Hold" (2 Buy, 2 Hold, 1 Sell) with an average target of $54.33, while recent targets include $50 (RBC) and $54 (Truist, Buy).
• Key fundamentals: market cap ~$1.72B and P/E 13.3; the company beat quarterly EPS and revenue estimates but revenue was down 8.2% year-over-year, and it pays a quarterly dividend of $0.45 (annualized yield ~4.2%).

Sylvamo Corporation (NYSE:SLVM - Get Free Report) shot up 5.9% on Monday . The stock traded as high as $43.42 and last traded at $43.5940. 94,204 shares were traded during trading, a decline of 71% from the average session volume of 329,173 shares. The stock had previously closed at $41.18.

Analyst Ratings Changes

Several research firms have weighed in on SLVM. Royal Bank Of Canada set a $50.00 price target on Sylvamo in a report on Thursday, April 16th. Weiss Ratings restated a "hold (c)" rating on shares of Sylvamo in a report on Wednesday, January 21st. Finally, Truist Financial began coverage on Sylvamo in a report on Monday, March 30th. They set a "buy" rating and a $54.00 price target for the company. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Sylvamo currently has an average rating of "Hold" and an average target price of $54.33.

Sylvamo Trading Up 5.1%

The stock has a market cap of $1.72 billion, a PE ratio of 13.32, a PEG ratio of 0.50 and a beta of 0.99. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.92 and a current ratio of 1.50. The stock has a fifty day moving average price of $43.21 and a 200 day moving average price of $45.90.

Sylvamo (NYSE:SLVM - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $1.05 by $0.03. The firm had revenue of $890.00 million during the quarter, compared to analysts' expectations of $858.76 million. Sylvamo had a return on equity of 15.12% and a net margin of 3.94%.The company's quarterly revenue was down 8.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.96 EPS. Equities analysts expect that Sylvamo Corporation will post 2.75 EPS for the current year.

Sylvamo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 28th. Investors of record on Tuesday, April 7th will be issued a dividend of $0.45 per share. The ex-dividend date is Tuesday, April 7th. This represents a $1.80 dividend on an annualized basis and a yield of 4.2%. Sylvamo's payout ratio is presently 55.21%.

Insider Transactions at Sylvamo

In related news, SVP Rodrigo Davoli sold 3,250 shares of the business's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.46, for a total transaction of $150,995.00. Following the completion of the transaction, the senior vice president owned 46,484 shares in the company, valued at $2,159,646.64. The trade was a 6.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sylvamo

Large investors have recently bought and sold shares of the business. UMB Bank n.a. boosted its holdings in Sylvamo by 171.2% during the 4th quarter. UMB Bank n.a. now owns 564 shares of the company's stock valued at $27,000 after acquiring an additional 356 shares during the period. Versant Capital Management Inc boosted its holdings in Sylvamo by 328.3% during the 3rd quarter. Versant Capital Management Inc now owns 681 shares of the company's stock valued at $30,000 after acquiring an additional 522 shares during the period. GAMMA Investing LLC raised its position in Sylvamo by 222.8% during the 4th quarter. GAMMA Investing LLC now owns 765 shares of the company's stock valued at $37,000 after purchasing an additional 528 shares in the last quarter. International Assets Investment Management LLC bought a new stake in Sylvamo during the 4th quarter valued at $38,000. Finally, Farther Finance Advisors LLC raised its position in Sylvamo by 162.7% during the 4th quarter. Farther Finance Advisors LLC now owns 838 shares of the company's stock valued at $40,000 after purchasing an additional 519 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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