Sylvamo (NYSE:SLVM) Trading 8.5% Higher on Earnings Beat

Shares of Sylvamo Corporation (NYSE:SLVM) rose 8.5% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $56.73 and last traded at $56.48. Approximately 180,307 shares changed hands during trading, a decline of 32% from the average daily volume of 264,678 shares. The stock had previously closed at $52.06.

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

Sylvamo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Monday, January 5th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, January 5th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 3.2%. Sylvamo’s payout ratio is currently 41.19%.

Analyst Ratings Changes

Several equities analysts have weighed in on SLVM shares. Weiss Ratings reissued a “hold (c)” rating on shares of Sylvamo in a research report on Wednesday, January 21st. Royal Bank Of Canada reissued a “sector perform” rating and issued a $53.00 price target on shares of Sylvamo in a research report on Thursday, December 18th. Finally, Bank of America upgraded shares of Sylvamo from an “underperform” rating to a “buy” rating and boosted their target price for the company from $41.00 to $59.00 in a research note on Monday, November 17th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $56.00.

Hedge Funds Weigh In On Sylvamo

Several institutional investors have recently modified their holdings of SLVM. Royal Bank of Canada raised its stake in Sylvamo by 49.4% in the first quarter. Royal Bank of Canada now owns 22,853 shares of the company’s stock valued at $1,532,000 after purchasing an additional 7,556 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Sylvamo by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,690 shares of the company’s stock worth $1,388,000 after purchasing an additional 893 shares in the last quarter. Empowered Funds LLC lifted its stake in Sylvamo by 16.9% in the 1st quarter. Empowered Funds LLC now owns 17,730 shares of the company’s stock worth $1,189,000 after purchasing an additional 2,557 shares in the last quarter. Intech Investment Management LLC raised its position in shares of Sylvamo by 25.9% during the 1st quarter. Intech Investment Management LLC now owns 18,140 shares of the company’s stock valued at $1,217,000 after buying an additional 3,727 shares in the last quarter. Finally, KLP Kapitalforvaltning AS boosted its stake in Sylvamo by 8.6% during the second quarter. KLP Kapitalforvaltning AS now owns 11,400 shares of the company’s stock worth $571,000 after buying an additional 900 shares during the period. 91.16% of the stock is owned by institutional investors.

Sylvamo Price Performance

The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.85 and a current ratio of 1.52. The firm has a market capitalization of $2.20 billion, a P/E ratio of 12.81 and a beta of 0.95. The stock’s 50 day simple moving average is $49.80 and its 200 day simple moving average is $46.23.

Sylvamo Company Profile

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.