Clearwater Paper (NYSE:CLW) Stock Price Breaks Below Two Hundred Day Moving Average After Earnings Miss

Clearwater Paper Corporation (NYSE:CLW)’s stock price passed below its 200-day moving average during trading on Tuesday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $17.24 and traded as low as $12.90. Clearwater Paper shares last traded at $13.5810, with a volume of 1,471,128 shares trading hands.

The basic materials company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.07). The company had revenue of $384.90 million for the quarter, compared to analysts’ expectations of $388.39 million.

Clearwater Paper News Roundup

Here are the key news stories impacting Clearwater Paper this week:

• Positive Sentiment: Clearwater Paper narrowed its third-quarter net loss to approximately $1.6 million, or $0.10 per share, from a $53.3 million loss a year earlier. The company also completed a refinancing of all debt, received $17.5 million in additional insurance proceeds, and reduced net debt to $260.7 million from $316.7 million at year-end. Clearwater Paper Posts Third-Quarter Results
• Positive Sentiment: Royal Bank of Canada maintained an “outperform” rating, although it lowered its price target from $23 to $22, implying substantial potential upside from recent levels. Royal Bank of Canada Clearwater Paper Rating
• Neutral Sentiment: Unusual options activity saw investors purchase 5,097 call contracts, roughly 790% above typical volume. This may signal speculative bullish interest, but options activity alone does not establish a change in Clearwater Paper’s fundamentals.
• Neutral Sentiment: Truist Financial lowered its price target from $20 to $17 and kept a “hold” rating, indicating a more cautious outlook even though the target remains above the current share price. Truist Financial Clearwater Paper Rating
• Negative Sentiment: Quarterly adjusted EPS was $0.23 below analysts’ expected loss of $0.16, while revenue of $384.9 million also missed the $388.4 million consensus estimate. Sales declined from $399 million a year earlier, primarily because of lower market pricing.
• Negative Sentiment: Disruptions at the Augusta mill hurt late-quarter volumes and costs. Sales volume fell 1% year over year, and paperboard’s average selling price declined 4%, reinforcing concerns about near-term profitability and execution. Clearwater Paper Augusta Mill Update

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Truist Financial reduced their price objective on Clearwater Paper from $20.00 to $17.00 and set a “hold” rating for the company in a research note on Tuesday. Bank of America lifted their target price on Clearwater Paper from $24.00 to $25.00 and gave the stock a “neutral” rating in a report on Friday, September 11th. TD Securities reaffirmed a “hold” rating and set a $20.00 target price on shares of Clearwater Paper in a research report on Wednesday, July 29th. Royal Bank Of Canada cut their target price on Clearwater Paper from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Clearwater Paper in a report on Wednesday, August 5th. One research analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $19.67.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Corient Private Wealth LP raised its holdings in shares of Clearwater Paper by 2.4% during the second quarter. Corient Private Wealth LP now owns 23,100 shares of the basic materials company’s stock valued at $362,000 after acquiring an additional 542 shares during the period. Versant Capital Management Inc boosted its stake in Clearwater Paper by 26.4% in the 2nd quarter. Versant Capital Management Inc now owns 4,627 shares of the basic materials company’s stock worth $73,000 after purchasing an additional 965 shares during the period. Farther Finance Advisors LLC boosted its stake in Clearwater Paper by 110.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,069 shares of the basic materials company’s stock worth $40,000 after purchasing an additional 1,087 shares during the period. Allspring Global Investments Holdings LLC boosted its stake in Clearwater Paper by 11.0% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 14,678 shares of the basic materials company’s stock worth $211,000 after purchasing an additional 1,450 shares during the period. Finally, Group One Trading LLC acquired a new position in Clearwater Paper in the 2nd quarter worth approximately $25,000. 89.98% of the stock is owned by hedge funds and other institutional investors.

Clearwater Paper Stock Performance

The firm’s 50-day simple moving average is $20.09 and its two-hundred day simple moving average is $17.24.

About Clearwater Paper

Clearwater Paper Corporation is a manufacturer of bleached paperboard and pulp products. Its paperboard is used in packaging applications such as folding cartons, food and beverage packaging, and other consumer and industrial products. The company also produces pulp used in the manufacture of paper and tissue products.

Clearwater Paper primarily serves customers in North America, supplying packaging manufacturers, consumer-products companies, and other converters. Its operations have included paper mills in the United States, including facilities in Idaho and Arkansas, with products marketed to a range of food, beverage, household, and commercial markets.

The company was formed in 2008 through the separation of Potlatch Corporation’s pulp and paperboard businesses.