Traders Purchase Large Volume of Call Options on Clearwater Paper (NYSE:CLW)

Key Points

• Unusual options activity: Traders purchased 2,280 Clearwater Paper call options, roughly 559% above the typical daily volume of 346 contracts.
• Stock performance and earnings: CLW shares rose $4.34 to $21.85 on Wednesday, while the company reported a quarterly loss of $1.75 per share, missing estimates by $0.26.
• Analyst sentiment remains cautious: Clearwater Paper has a consensus “Hold” rating and an average price target of $18.17, despite substantial recent buying by institutional investors, which own nearly 90% of the stock.

Clearwater Paper Corporation (NYSE:CLW - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock traders purchased 2,280 call options on the stock. This is an increase of approximately 559% compared to the typical daily volume of 346 call options.

Hedge Funds Weigh In On Clearwater Paper

A number of hedge funds have recently modified their holdings of the business. Millennium Management LLC lifted its position in shares of Clearwater Paper by 158.1% during the 4th quarter. Millennium Management LLC now owns 360,795 shares of the basic materials company's stock valued at $6,278,000 after buying an additional 221,029 shares during the last quarter. UBS Group AG increased its holdings in Clearwater Paper by 228.3% in the 3rd quarter. UBS Group AG now owns 258,186 shares of the basic materials company's stock worth $5,360,000 after acquiring an additional 179,539 shares during the last quarter. Invenomic Capital Management LP increased its holdings in Clearwater Paper by 113.0% in the 4th quarter. Invenomic Capital Management LP now owns 320,212 shares of the basic materials company's stock worth $5,572,000 after acquiring an additional 169,880 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Clearwater Paper by 33.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 557,953 shares of the basic materials company's stock valued at $9,708,000 after acquiring an additional 139,013 shares during the period. Finally, Renaissance Technologies LLC lifted its holdings in Clearwater Paper by 107.4% during the first quarter. Renaissance Technologies LLC now owns 237,115 shares of the basic materials company's stock valued at $3,410,000 after purchasing an additional 122,815 shares during the last quarter. Institutional investors and hedge funds own 89.98% of the company's stock.

Clearwater Paper Price Performance

Shares of CLW traded up $4.34 during trading hours on Wednesday, hitting $21.85. 597,218 shares of the company were exchanged, compared to its average volume of 213,423. The company has a market cap of $352.27 million, a price-to-earnings ratio of -14.19 and a beta of 0.27. The company has a quick ratio of 1.26, a current ratio of 2.61 and a debt-to-equity ratio of 0.44. Clearwater Paper has a fifty-two week low of $11.73 and a fifty-two week high of $28.51. The firm's fifty day moving average is $16.04 and its 200 day moving average is $15.73.

Clearwater Paper (NYSE:CLW - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The basic materials company reported ($1.75) EPS for the quarter, missing the consensus estimate of ($1.49) by ($0.26). Clearwater Paper had a negative net margin of 1.63% and a negative return on equity of 3.94%. The firm had revenue of $374.80 million for the quarter, compared to analyst estimates of $374.80 million. On average, equities analysts anticipate that Clearwater Paper will post -3.41 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Bank of America assumed coverage on shares of Clearwater Paper in a research report on Thursday, July 2nd. They issued a "buy" rating and a $19.00 price objective on the stock. TD Securities reiterated a "hold" rating and set a $20.00 target price on shares of Clearwater Paper in a research note on Wednesday. Wall Street Zen cut Clearwater Paper from a "hold" rating to a "sell" rating in a research note on Sunday, June 28th. Truist Financial raised their price target on Clearwater Paper from $12.00 to $17.00 and gave the company a "hold" rating in a report on Wednesday, July 15th. Finally, TD downgraded shares of Clearwater Paper from a "buy" rating to a "hold" rating and decreased their price objective for the company from $19.00 to $17.00 in a report on Wednesday, April 29th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Clearwater Paper has a consensus rating of "Hold" and an average target price of $18.17.

About Clearwater Paper

Clearwater Paper Corporation is an independent manufacturer of premium tissue and pulp and paperboard products for private-label and commercial customers in North America. The company operates through two core segments: Consumer Products, which produces bathroom tissue, paper towels and other away-from-home tissue products under private-label contracts; and Pulp & Paperboard, which supplies bleached paperboard used in folding cartons, foodservice packaging and specialty paper applications.

The Consumer Products segment services retail grocers, warehouse clubs, online merchants and janitorial distributors, leveraging multiple converting facilities to produce roll and folded tissue items for both household and institutional use.

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