Sylvamo (NYSE:SLVM) Downgraded by Zacks Research to Strong Sell

Zacks Research cut shares of Sylvamo (NYSE:SLVM) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday morning,Zacks.com reports.

Several other equities analysts have also issued reports on SLVM. Royal Bank Of Canada lowered their price target on Sylvamo from $50.00 to $49.00 and set a “sector perform” rating on the stock in a research note on Monday, May 11th. Truist Financial reduced their price objective on Sylvamo from $54.00 to $51.00 and set a “buy” rating for the company in a research report on Wednesday. Weiss Ratings lowered Sylvamo from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 11th. Finally, Bank of America restated a “neutral” rating and set a $45.00 price objective on shares of Sylvamo in a research report on Tuesday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Sylvamo presently has a consensus rating of “Reduce” and a consensus target price of $48.33.

Sylvamo Stock Performance

NYSE SLVM opened at $37.70 on Tuesday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.45 and a quick ratio of 0.81. The firm has a market capitalization of $1.50 billion, a price-to-earnings ratio of 14.90, a P/E/G ratio of 0.60 and a beta of 0.87. The company’s fifty day moving average is $39.05 and its two-hundred day moving average is $43.50. Sylvamo has a 52-week low of $35.53 and a 52-week high of $56.80.

Sylvamo (NYSE:SLVM) last announced its quarterly earnings data on Friday, May 8th. The company reported ($0.53) EPS for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.28). Sylvamo had a net margin of 3.11% and a return on equity of 9.79%. The company had revenue of $755.00 million for the quarter, compared to analyst estimates of $740.85 million. During the same period in the prior year, the company posted $0.68 EPS. The firm’s quarterly revenue was down 8.0% on a year-over-year basis. Equities research analysts forecast that Sylvamo will post 2.25 EPS for the current year.

Sylvamo Announces Dividend

The business 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 dividend on an annualized basis and a dividend yield of 4.8%. Sylvamo’s dividend payout ratio is presently 71.15%.

Insider Activity at Sylvamo

In related news, Director Lizanne M. Bruce sold 1,230 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $41.70, for a total transaction of $51,291.00. Following the completion of the transaction, the director owned 14,475 shares in the company, valued at $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 available through the SEC website. 0.81% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Millennium Management LLC grew its holdings in shares of Sylvamo by 605.9% in 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 last quarter. Nomura Holdings Inc. increased its position in shares of Sylvamo by 34.1% during the 3rd quarter. Nomura Holdings Inc. now owns 2,150,000 shares of the company’s stock worth $95,073,000 after purchasing an additional 546,336 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Sylvamo by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,362,474 shares of the company’s stock valued at $57,547,000 after purchasing an additional 72,177 shares during the last quarter. State Street Corp lifted its holdings in Sylvamo by 2.6% during the 4th quarter. State Street Corp now owns 1,341,850 shares of the company’s stock valued at $64,610,000 after purchasing an additional 34,551 shares during the last quarter. Finally, Wasatch Advisors LP boosted its position in Sylvamo by 12.5% in the third quarter. Wasatch Advisors LP now owns 941,999 shares of the company’s stock valued at $41,655,000 after buying an additional 104,778 shares in the last quarter. 91.16% of the stock is currently owned by institutional investors and hedge funds.

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.