Sylvamo (NYSE:SLVM) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sylvamo from “hold” to “sell,” adding to a generally cautious analyst outlook on the stock. The consensus rating now stands at “Reduce,” with an average target price of $47.33.
• Sylvamo reported weaker-than-expected quarterly earnings, posting EPS of -$0.53 versus the -$0.25 estimate, though revenue of $755 million came in above forecasts. Revenue was still down 8% year over year.
• The stock was trading near $38.27, close to its 52-week low of $35.53 and well below its 52-week high of $56.80. Institutional investors own most of the shares, and hedge funds recently increased their positions.

Sylvamo (NYSE:SLVM - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

SLVM has been the subject of a number of other research reports. Bank of America reiterated a "neutral" rating and set a $45.00 target price on shares of Sylvamo in a report on Tuesday, July 14th. Weiss Ratings cut Sylvamo from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Truist Financial dropped their target price on Sylvamo from $54.00 to $51.00 and set a "buy" rating on the stock in a research report on Wednesday, July 15th. Zacks Research cut Sylvamo from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 14th. Finally, Royal Bank Of Canada reduced their price target on Sylvamo from $49.00 to $46.00 and set a "sector perform" rating for the company in a research report on Friday, July 17th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average target price of $47.33.

Sylvamo Stock Performance

Shares of SLVM stock opened at $38.27 on Friday. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.81 and a current ratio of 1.45. Sylvamo has a 52 week low of $35.53 and a 52 week high of $56.80. The company's 50 day moving average price is $38.77 and its two-hundred day moving average price is $43.03. The company has a market capitalization of $1.52 billion, a P/E ratio of 15.13, a price-to-earnings-growth ratio of 0.83 and a beta of 0.87.

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

Insiders Place Their Bets

In other Sylvamo news, Director Lizanne M. Bruce sold 1,230 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $41.70, for a total value of $51,291.00. Following the transaction, the director directly owned 14,475 shares in the company, valued at $603,607.50. The trade was a 7.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sylvamo

Several institutional investors have recently bought and sold shares of the company. Royal Bank of Canada increased its position in Sylvamo by 49.4% in the first quarter. Royal Bank of Canada now owns 22,853 shares of the company's stock worth $1,532,000 after buying an additional 7,556 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Sylvamo by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,690 shares of the company's stock valued at $1,388,000 after buying an additional 893 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Sylvamo by 16.9% during the 1st quarter. Empowered Funds LLC now owns 17,730 shares of the company's stock worth $1,189,000 after acquiring an additional 2,557 shares during the period. Intech Investment Management LLC increased its holdings in Sylvamo by 25.9% in the 1st quarter. Intech Investment Management LLC now owns 18,140 shares of the company's stock worth $1,217,000 after acquiring an additional 3,727 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in Sylvamo by 23.1% in the 2nd quarter. Russell Investments Group Ltd. now owns 24,621 shares of the company's stock valued at $1,234,000 after acquiring an additional 4,613 shares during the period. Hedge funds and other institutional investors own 91.16% of the company's stock.

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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