Clearwater Paper (NYSE:CLW) Shares Gap Up – Still a Buy?

Clearwater Paper Co. (NYSE:CLW)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $24.71, but opened at $30.00. Clearwater Paper shares last traded at $30.34, with a volume of 579,812 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CLW shares. Royal Bank of Canada reaffirmed an “outperform” rating and set a $37.00 price objective on shares of Clearwater Paper in a research report on Tuesday, November 5th. StockNews.com downgraded Clearwater Paper from a “hold” rating to a “sell” rating in a research report on Wednesday, November 6th.

Clearwater Paper Price Performance

The stock has a market cap of $501.35 million, a price-to-earnings ratio of 35.19 and a beta of 0.33. The company has a debt-to-equity ratio of 1.72, a current ratio of 1.78 and a quick ratio of 1.13. The stock’s 50 day simple moving average is $26.76 and its two-hundred day simple moving average is $35.54.

Clearwater Paper announced that its board has authorized a share buyback plan on Monday, November 4th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the basic materials company to buy up to 23.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CLW. Pacer Advisors Inc. grew its stake in shares of Clearwater Paper by 45.2% in the 3rd quarter. Pacer Advisors Inc. now owns 1,887,015 shares of the basic materials company’s stock valued at $53,855,000 after purchasing an additional 587,043 shares during the period. Dimensional Fund Advisors LP boosted its stake in Clearwater Paper by 0.7% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,408,298 shares of the basic materials company’s stock valued at $68,261,000 after buying an additional 10,074 shares in the last quarter. American Century Companies Inc. grew its position in Clearwater Paper by 23.2% in the second quarter. American Century Companies Inc. now owns 495,358 shares of the basic materials company’s stock valued at $24,010,000 after acquiring an additional 93,123 shares during the period. Acadian Asset Management LLC raised its stake in Clearwater Paper by 39.1% during the second quarter. Acadian Asset Management LLC now owns 218,505 shares of the basic materials company’s stock worth $10,586,000 after acquiring an additional 61,366 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its holdings in shares of Clearwater Paper by 35.7% during the second quarter. Allspring Global Investments Holdings LLC now owns 148,051 shares of the basic materials company’s stock valued at $7,176,000 after acquiring an additional 38,917 shares during the period. Institutional investors and hedge funds own 89.98% of the company’s stock.

About Clearwater Paper

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting.