Sylvamo (NYSE:SLVM) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Sylvamo from “hold” to “strong sell,” adding to a more cautious analyst tone around the stock.
• Other firms have also turned less optimistic: Royal Bank of Canada cut its price target to $49, Weiss Ratings moved to “sell,” and Bank of America kept a “neutral” view, while Truist trimmed its target to $51. The consensus rating now sits at “Reduce” with an average price target of $48.33.
• Sylvamo’s latest results were weak on earnings, as it posted a Q1 EPS loss of $0.53 versus expectations for a $0.25 loss, even though revenue topped estimates at $755 million. The stock was trading around $37.70, near its 52-week low range.

Sylvamo (NYSE:SLVM - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Royal Bank Of Canada decreased their price objective on Sylvamo from $50.00 to $49.00 and set a "sector perform" rating for the company in a report on Monday, May 11th. Weiss Ratings lowered Sylvamo from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 11th. Bank of America reiterated a "neutral" rating and set a $45.00 price target on shares of Sylvamo in a research report on Tuesday. Finally, Truist Financial decreased their price target on Sylvamo from $54.00 to $51.00 and set a "buy" rating for the company in a report on Wednesday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $48.33.

Sylvamo Stock Down 0.4%

NYSE:SLVM opened at $37.70 on Tuesday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.45 and a quick ratio of 0.81. The company's fifty day moving average price is $39.05 and its 200-day moving average price is $43.50. Sylvamo has a 1-year low of $35.53 and a 1-year high of $56.80. The firm has a market capitalization of $1.50 billion, a P/E ratio of 14.90, a PEG ratio of 0.60 and a beta of 0.87.

Sylvamo (NYSE:SLVM - Get Free Report) last posted its earnings results on Friday, May 8th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.28). The business had revenue of $755.00 million for 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 revenue for the quarter was down 8.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.68 earnings per share. As a group, equities research analysts anticipate that Sylvamo will post 2.25 EPS for the current year.

Insider Activity at Sylvamo

In related news, Director Lizanne M. Bruce sold 1,230 shares of Sylvamo stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $41.70, for a total value of $51,291.00. Following the completion of the transaction, the director owned 14,475 shares in the company, valued at $603,607.50. The trade was a 7.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.81% of the stock is owned by company insiders.

Institutional Trading of Sylvamo

A number of institutional investors and hedge funds have recently made changes to their positions in the business. UMB Bank n.a. grew its stake in Sylvamo by 171.2% in 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. GAMMA Investing LLC lifted its holdings in Sylvamo by 222.8% during 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 in the last quarter. International Assets Investment Management LLC acquired a new stake in shares of Sylvamo in the fourth quarter valued at about $38,000. Advisory Services Network LLC purchased a new stake in shares of Sylvamo during the third quarter worth about $38,000. Finally, Farther Finance Advisors LLC raised its position in shares of Sylvamo by 162.7% during the 4th quarter. Farther Finance Advisors LLC now owns 838 shares of the company's stock worth $40,000 after purchasing an additional 519 shares during the last quarter. 91.16% of the stock is currently owned by hedge funds and other institutional investors.

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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