Sylvamo (NYSE:SLVM) Shares Gap Up After Earnings Beat

Shares of Sylvamo Corporation (NYSE:SLVM) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $33.07, but opened at $37.89. Sylvamo shares last traded at $40.1040, with a volume of 115,691 shares traded.

The company reported $1.33 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.20. Sylvamo had a return on equity of 8.36% and a net margin of 2.31%. The business had revenue of $645.00 million during the quarter, compared to the consensus estimate of $817.79 million. During the same period in the previous year, the company posted $1.44 earnings per share. The firm’s revenue for the quarter was down 23.8% on a year-over-year basis.

Sylvamo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Friday, October 2nd were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.80 annualized dividend and a dividend yield of 4.4%. Sylvamo’s dividend payout ratio (DPR) is 95.74%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on SLVM shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of Sylvamo in a research note on Wednesday. Bank of America cut their target price on shares of Sylvamo from $45.00 to $42.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 14th. Wall Street Zen upgraded shares of Sylvamo from a “sell” rating to a “hold” rating in a report on Sunday, August 2nd. Zacks Research raised shares of Sylvamo from a “strong sell” rating to a “hold” rating in a research note on Monday, October 12th. Finally, Royal Bank Of Canada decreased their price target on shares of Sylvamo from $46.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday, October 16th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $41.00.

Institutional Trading of Sylvamo

Hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp raised its holdings in Sylvamo by 5.2% during the second quarter. State Street Corp now owns 1,389,749 shares of the company’s stock worth $52,533,000 after buying an additional 69,299 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Sylvamo by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company’s stock valued at $57,547,000 after buying an additional 72,177 shares in the last quarter. Allianz Asset Management GmbH grew its holdings in shares of Sylvamo by 15.8% during the second quarter. Allianz Asset Management GmbH now owns 506,147 shares of the company’s stock valued at $19,132,000 after buying an additional 69,195 shares during the last quarter. Rokos Capital Management LLP acquired a new position in shares of Sylvamo during the first quarter valued at about $10,802,000. Finally, Bank of America Corp DE grew its holdings in shares of Sylvamo by 81.6% during the first quarter. Bank of America Corp DE now owns 224,199 shares of the company’s stock valued at $9,470,000 after buying an additional 100,746 shares during the last quarter. Institutional investors own 91.16% of the company’s stock.

Sylvamo Price Performance

The company has a debt-to-equity ratio of 0.88, a current ratio of 1.47 and a quick ratio of 0.80. The business’s fifty day moving average price is $33.95 and its 200-day moving average price is $39.82. The stock has a market capitalization of $1.62 billion, a price-to-earnings ratio of 21.65, a PEG ratio of 1.58 and a beta of 0.87.

Sylvamo Company Profile

Sylvamo Corporation is a global producer of uncoated paper products. The company manufactures papers used for printing, copying, writing, publishing, commercial applications, notebooks, envelopes and other everyday communication needs. Its portfolio includes branded and private-label products serving businesses, retailers, publishers, printers and consumers.

Sylvamo operates paper mills and related facilities in North America, Latin America and Europe, with products sold to customers in numerous markets worldwide.