Sylvamo (NYSE:SLVM) Trading 8.5% Higher After Better-Than-Expected Earnings

Sylvamo Corporation (NYSE:SLVM) shares traded up 8.5% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $56.73 and last traded at $56.48. 180,307 shares were traded during mid-day trading, a decline of 32% from the average session volume of 264,678 shares. The stock had previously closed at $52.06.

The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.05 by $0.03. Sylvamo had a return on equity of 19.72% and a net margin of 5.25%.The business had revenue of $890.00 million during the quarter, compared to analyst estimates of $858.76 million. During the same period in the prior year, the company posted $1.96 EPS. The business’s revenue for the quarter was down 8.2% compared to the same quarter last year.

Sylvamo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Shareholders of record on Monday, January 5th were issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 3.3%. The ex-dividend date was Monday, January 5th. Sylvamo’s payout ratio is presently 41.19%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on SLVM. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $53.00 target price on shares of Sylvamo in a research report on Thursday, December 18th. Bank of America raised Sylvamo from an “underperform” rating to a “buy” rating and increased their price objective for the stock from $41.00 to $59.00 in a research note on Monday, November 17th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sylvamo in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $56.00.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Versant Capital Management Inc increased its position in shares of Sylvamo by 328.3% during the third quarter. Versant Capital Management Inc now owns 681 shares of the company’s stock valued at $30,000 after purchasing an additional 522 shares during the period. GAMMA Investing LLC boosted its stake in Sylvamo by 222.8% during the fourth quarter. GAMMA Investing LLC now owns 765 shares of the company’s stock worth $37,000 after buying an additional 528 shares in the last quarter. International Assets Investment Management LLC bought a new stake in Sylvamo in the 4th quarter valued at $38,000. Farther Finance Advisors LLC raised its stake in shares of Sylvamo by 162.7% in the 4th quarter. Farther Finance Advisors LLC now owns 838 shares of the company’s stock valued at $40,000 after buying an additional 519 shares in the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of Sylvamo during the 3rd quarter worth about $38,000. 91.16% of the stock is currently owned by institutional investors and hedge funds.

Sylvamo Stock Up 5.2%

The company has a current ratio of 1.52, a quick ratio of 0.85 and a debt-to-equity ratio of 0.80. The business’s fifty day moving average price is $49.94 and its 200 day moving average price is $46.29. The company has a market capitalization of $2.16 billion, a P/E ratio of 12.53 and a beta of 0.95.

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.