American Century Companies Inc. has increased its holdings in Sylvamo Corporation (NYSE: SLVM) by 7.2% during the third quarter of 2023. According to the latest disclosure submitted to the Securities and Exchange Commission, the firm now owns 1,290,957 shares of Sylvamo after acquiring an additional 87,095 shares in that period. This stake is valued at approximately $57.1 million, constituting about 3.27% of Sylvamo’s total shares.
A number of other institutional investors have also adjusted their positions in Sylvamo recently. Notably, the Royal Bank of Canada boosted its stake by 49.4% in the first quarter, bringing its total to 22,853 shares worth $1.5 million. Similarly, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings by 4.5%, while Empowered Funds LLC increased its position by 16.9%. Intech Investment Management LLC also boosted its holdings by 25.9%. Collectively, institutional investors and hedge funds own 91.16% of Sylvamo’s stock.
Insider Transactions and Stock Performance
In related news, Sylvamo’s Senior Vice President, Rodrigo Davoli, sold 3,250 shares of the company’s stock on March 4, 2024, at an average price of $46.46. This transaction amounted to $150,995, reducing Davoli’s ownership to 46,484 shares, valued at approximately $2.16 million. Insider ownership accounts for 0.74% of the company’s stock.
As of the latest trading session, shares of Sylvamo opened at $45.25, reflecting a 2.9% decline. The company has a market capitalization of $1.79 billion and a price-to-earnings ratio of 13.88. Over the past year, the stock has fluctuated between a low of $37.51 and a high of $69.42. The 50-day moving average stands at $49.24, while the 200-day moving average is $46.48.
Financial Performance and Future Outlook
Sylvamo Corporation last reported its earnings on February 12, 2024, revealing earnings per share (EPS) of $1.08, surpassing analysts’ expectations of $1.05 by $0.03. Despite this positive performance, the company’s revenue for the quarter was $890 million, down 8.2% year-over-year, compared to the analyst estimate of $858.76 million. Analysts forecast that Sylvamo will achieve an EPS of $7.45 in the current fiscal year.
In terms of dividends, Sylvamo announced a quarterly dividend of $0.45 per share, set to be distributed on April 28, 2024, to shareholders of record on April 7, 2024. This represents an annualized dividend of $1.80 with a yield of 4.0%. The company’s dividend payout ratio currently stands at 55.21%.
Analyst sentiment surrounding Sylvamo has been mixed. Bank of America upgraded the company from “underperform” to “buy” and adjusted its price target from $41.00 to $59.00 in a report dated November 17, 2023. Royal Bank of Canada reiterated a “sector perform” rating with a target of $53.00, while Weiss Ratings maintained a “hold (c)” rating.
Overall, Sylvamo Corporation, founded in October 2021 as a spin-off from International Paper, continues to position itself as a key player in the global uncoated freesheet paper market, headquartered in Memphis, Tennessee. The company aims to meet the evolving needs of customers in paper-based communications and packaging applications.
