Sylvamo (NYSE:SLVM) Hits New 1-Year Low – Should You Sell?

Sylvamo Corporation (NYSE:SLVM) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $35.28 and last traded at $35.5650, with a volume of 11449 shares changing hands. The stock had previously closed at $35.92.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on SLVM. Weiss Ratings reiterated a “sell (d+)” rating on shares of Sylvamo in a research report on Friday, August 7th. Royal Bank Of Canada reduced their price target on shares of Sylvamo from $49.00 to $46.00 and set a “sector perform” rating on the stock in a research report on Friday, July 17th. Bank of America reaffirmed a “neutral” rating and set a $45.00 price objective on shares of Sylvamo in a research note on Tuesday, July 14th. Truist Financial reiterated a “buy” rating and issued a $49.00 target price (down from $51.00) on shares of Sylvamo in a research note on Monday, August 10th. Finally, Zacks Research downgraded Sylvamo from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 14th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Sylvamo presently has an average rating of “Reduce” and a consensus target price of $46.67.

Sylvamo Price Performance

The company has a quick ratio of 0.80, a current ratio of 1.47 and a debt-to-equity ratio of 0.88. The stock’s 50-day moving average price is $38.14 and its 200-day moving average price is $40.73. The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of 18.65, a price-to-earnings-growth ratio of 1.31 and a beta of 0.87.

Sylvamo (NYSE:SLVM) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.03 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.01. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. The business had revenue of $806.00 million during the quarter, compared to analyst estimates of $811.25 million. During the same quarter last year, the business posted $0.37 earnings per share. Sylvamo’s revenue for the quarter was up 1.5% compared to the same quarter last year. Equities research analysts anticipate that Sylvamo Corporation will post 1.53 earnings per share for the current year.

Insider Activity at Sylvamo

In other news, Director Lizanne M. Bruce sold 1,230 shares of Sylvamo stock in a transaction on Monday, June 15th. The stock was sold at an average price of $41.70, for a total value of $51,291.00. Following the completion of the sale, the director directly owned 14,475 shares of the company’s stock, valued at approximately $603,607.50. This trade represents a 7.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On Sylvamo

Several hedge funds have recently added to or reduced their stakes in the company. Millennium Management LLC increased its position in Sylvamo by 605.9% in the fourth 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 position in Sylvamo by 34.1% during 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 period. California State Teachers Retirement System boosted its stake in shares of Sylvamo by 3,572.4% in the 2nd quarter. California State Teachers Retirement System now owns 1,545,113 shares of the company’s stock valued at $58,405,000 after purchasing an additional 1,503,039 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Sylvamo by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company’s stock worth $57,547,000 after buying an additional 72,177 shares during the period. Finally, State Street Corp grew its position in shares of Sylvamo by 2.6% during the 4th quarter. State Street Corp now owns 1,341,850 shares of the company’s stock worth $64,610,000 after buying an additional 34,551 shares during the period. 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.