Sylvamo (NYSE:SLVM) Stock Price Down 5% – Here’s Why

Sylvamo Corporation (NYSE:SLVM)’s stock price dropped 5% during trading on Tuesday . The stock traded as low as $36.87 and last traded at $37.3020. 47,574 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 345,622 shares. The stock had previously closed at $39.28.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Bank of America reaffirmed a “neutral” rating and set a $45.00 price objective on shares of Sylvamo in a research report on Tuesday. Zacks Research raised Sylvamo from a “strong sell” rating to a “hold” rating in a research note on Monday, April 27th. Weiss Ratings downgraded Sylvamo from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 11th. Royal Bank Of Canada reduced their price target on Sylvamo from $50.00 to $49.00 and set a “sector perform” rating on the stock in a research report on Monday, May 11th. Finally, Truist Financial began coverage on Sylvamo in a research note on Monday, March 30th. They issued a “buy” rating and a $54.00 price objective for the company. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $49.33.

Sylvamo Trading Down 4.2%

The stock has a market cap of $1.49 billion, a price-to-earnings ratio of 14.87, a P/E/G ratio of 0.60 and a beta of 0.87. The business’s 50 day moving average is $39.31 and its 200 day moving average is $43.66. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.45 and a quick ratio of 0.81.

Sylvamo (NYSE:SLVM) last announced its quarterly 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). Sylvamo had a return on equity of 9.79% and a net margin of 3.11%.The business had revenue of $755.00 million for the quarter, compared to analysts’ expectations of $740.85 million. During the same period last year, the firm earned $0.68 earnings per share. The firm’s quarterly revenue was down 8.0% on a year-over-year basis. As a group, equities analysts expect that Sylvamo Corporation will post 2.32 earnings per share for the current fiscal year.

Sylvamo Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 28th. Shareholders of record on Tuesday, July 7th will be paid a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 4.8%. The ex-dividend date is Tuesday, July 7th. Sylvamo’s dividend payout ratio is currently 71.15%.

Insiders Place Their Bets

In other news, Director Lizanne M. Bruce sold 1,230 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $41.70, for a total transaction of $51,291.00. Following the completion of the sale, the director owned 14,475 shares in the company, valued at approximately $603,607.50. The trade was a 7.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On Sylvamo

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Millennium Management LLC boosted its stake in Sylvamo by 605.9% in the fourth quarter. Millennium Management LLC now owns 2,233,209 shares of the company’s stock valued at $107,529,000 after acquiring an additional 1,916,829 shares in the last quarter. Nomura Holdings Inc. lifted its holdings in shares of Sylvamo by 34.1% in the 3rd quarter. Nomura Holdings Inc. now owns 2,150,000 shares of the company’s stock valued at $95,073,000 after purchasing an additional 546,336 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Sylvamo by 5.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company’s stock valued at $57,547,000 after purchasing an additional 72,177 shares during the last quarter. State Street Corp boosted its position in shares of Sylvamo by 2.6% in the 4th quarter. State Street Corp now owns 1,341,850 shares of the company’s stock valued at $64,610,000 after purchasing an additional 34,551 shares during the period. Finally, Wasatch Advisors LP grew its stake in Sylvamo by 12.5% during the 3rd quarter. Wasatch Advisors LP now owns 941,999 shares of the company’s stock worth $41,655,000 after buying an additional 104,778 shares during the last quarter. 91.16% of the stock is currently owned by institutional investors and hedge funds.

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.