Sylvamo (NYSE:SLVM) Shares Gap Down on Disappointing Earnings

Sylvamo Co. (NYSE:SLVM)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $60.20, but opened at $57.76. Sylvamo shares last traded at $52.68, with a volume of 51,704 shares changing hands.

The company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.70 by ($0.02). The company had revenue of $821.00 million for the quarter, compared to analysts’ expectations of $819.61 million. Sylvamo had a return on equity of 34.72% and a net margin of 7.96%. The company’s revenue was down 9.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.07 EPS.

Sylvamo Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, April 29th. Stockholders of record on Tuesday, April 8th were given a $0.45 dividend. The ex-dividend date of this dividend was Tuesday, April 8th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 3.41%. Sylvamo’s dividend payout ratio (DPR) is currently 24.97%.

Analysts Set New Price Targets

Separately, Royal Bank of Canada cut their price target on shares of Sylvamo from $83.00 to $80.00 and set a “sector perform” rating for the company in a report on Thursday, February 13th.

Insider Activity

In other news, CEO Jeanmichel Ribieras sold 21,250 shares of the company’s stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $65.14, for a total value of $1,384,225.00. Following the completion of the transaction, the chief executive officer now directly owns 131,894 shares in the company, valued at approximately $8,591,575.16. This represents a 13.88 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.74% of the company’s stock.

Institutional Trading of Sylvamo

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Smartleaf Asset Management LLC lifted its stake in Sylvamo by 182.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 624 shares of the company’s stock worth $49,000 after purchasing an additional 403 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Sylvamo by 43.6% in the 4th quarter. GAMMA Investing LLC now owns 662 shares of the company’s stock valued at $52,000 after acquiring an additional 201 shares during the last quarter. Fifth Third Bancorp lifted its stake in shares of Sylvamo by 40.9% in the 4th quarter. Fifth Third Bancorp now owns 737 shares of the company’s stock valued at $58,000 after acquiring an additional 214 shares during the last quarter. Covestor Ltd boosted its holdings in Sylvamo by 464.5% during the 4th quarter. Covestor Ltd now owns 779 shares of the company’s stock valued at $62,000 after acquiring an additional 641 shares during the period. Finally, Wilmington Savings Fund Society FSB bought a new position in Sylvamo during the 3rd quarter worth approximately $82,000. Hedge funds and other institutional investors own 91.16% of the company’s stock.

Sylvamo Stock Down 12.4 %

The firm has a market capitalization of $2.15 billion, a PE ratio of 7.31, a PEG ratio of 2.23 and a beta of 1.18. The company has a current ratio of 1.56, a quick ratio of 1.03 and a debt-to-equity ratio of 0.92. The stock has a 50 day simple moving average of $62.41 and a 200 day simple moving average of $75.12.

Sylvamo Company Profile

Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and graphic and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers.