Sylvamo (NYSE:SLVM) Shares Down 5% – Should You Sell?

Shares of Sylvamo Corporation (NYSE:SLVM) traded down 5% 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 session volume of 345,622 shares. The stock had previously closed at $39.28.

Analyst Upgrades and Downgrades

SLVM has been the topic of a number of recent research reports. Bank of America reaffirmed a “neutral” rating and issued a $45.00 target price on shares of Sylvamo in a report on Tuesday. Zacks Research raised shares of Sylvamo from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. Weiss Ratings cut shares of Sylvamo from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 11th. Truist Financial started coverage on shares of Sylvamo in a research note on Monday, March 30th. They set a “buy” rating and a $54.00 target price for the company. Finally, Royal Bank Of Canada dropped 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. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $49.33.

Sylvamo Trading Down 4.2%

The company has a fifty day moving average of $39.31 and a two-hundred day moving average of $43.66. The company has a quick ratio of 0.81, a current ratio of 1.45 and a debt-to-equity ratio of 0.78. The stock has a market capitalization 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.

Sylvamo (NYSE:SLVM) last announced its quarterly earnings data on Friday, May 8th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.28). The firm had revenue of $755.00 million during 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 business’s quarterly revenue was down 8.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.68 earnings per share. On average, research analysts expect that Sylvamo Corporation will post 2.32 EPS for the current year.

Sylvamo Announces Dividend

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

Insider Activity

In related news, Director Lizanne M. Bruce sold 1,230 shares of the stock in a transaction dated 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 transaction, the director directly owned 14,475 shares of the company’s stock, valued at $603,607.50. This represents a 7.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.81% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sylvamo

A number of institutional investors have recently added to or reduced their stakes in SLVM. Millennium Management LLC increased its position in Sylvamo by 605.9% during the 4th quarter. Millennium Management LLC now owns 2,233,209 shares of the company’s stock worth $107,529,000 after purchasing an additional 1,916,829 shares during the period. 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 buying an additional 546,336 shares during the period. Dimensional Fund Advisors LP boosted 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. State Street Corp boosted its stake in shares of Sylvamo by 2.6% in the fourth quarter. State Street Corp now owns 1,341,850 shares of the company’s stock valued at $64,610,000 after buying an additional 34,551 shares in the last quarter. Finally, Wasatch Advisors LP grew its holdings in Sylvamo by 12.5% during the third quarter. Wasatch Advisors LP now owns 941,999 shares of the company’s stock worth $41,655,000 after acquiring an additional 104,778 shares during the period. Hedge funds and other institutional investors own 91.16% of the company’s stock.

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.