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Clearwater Paper Corp (NYSE:CLW) has reached a new 52-week high, with its stock price soaring to $55.57. This milestone reflects the company's strong performance over the past year, which has seen its stock value increase significantly. The 52-week high of $55.57 marks a notable achievement for Clearwater Paper Corp, demonstrating its robust financial health and positive market sentiment. Over the past year, the company has experienced a substantial growth of 66.65%, further solidifying its position in the market. This impressive 1-year change data underscores the company's successful strategies and its potential for future growth.
In other recent news, Clearwater Paper Corporation has made several significant developments. The company has agreed to sell its tissue business to Sofidel America Corporation for $1.06 billion, a strategic move to focus on its paperboard operations. The transaction, which involves a multiple of approximately six times the tissue business's Adjusted EBITDA, is expected to close in late 2024, subject to customary conditions, including antitrust approvals.
Clearwater Paper also reported strong first-quarter 2024 financial results, with an adjusted EBITDA of $61.5 million, surpassing RBC Capital Markets' estimate. Net sales reached $496 million, largely due to significant contributions from its tissue business. Following these results, RBC Capital Markets raised their price target for Clearwater Paper from $41 to $42, maintaining a sector perform rating.
The company has also announced a $23 million investment to introduce a new facial tissue converting line at its Shelby, North Carolina plant. This expansion aims to cater to growing customer needs and reinforce the company's commitment to delivering superior quality and service. These recent developments highlight Clearwater Paper's strategic efforts to bolster its operations and financial performance.
InvestingPro Insights
Clearwater Paper Corp (CLW) has not only hit a new 52-week high but also demonstrates strong financial metrics that could interest investors. With a market capitalization of $919.82 million and a P/E ratio that has improved to 8.24 over the last twelve months as of Q1 2024, the company shows signs of being attractively valued. Additionally, the stock has seen a remarkable 1-week price total return of 12.34%, indicating a significant return over a short period. Investors may also take note of the company's strong free cash flow yield, as suggested by its valuation, which is an important metric for assessing financial health and future growth potential.
Among the InvestingPro Tips, two particularly stand out for Clearwater Paper Corp: the aggressive share buyback management has undertaken and the high shareholder yield, which could be indicative of the company's commitment to returning value to its investors. It's also worth mentioning that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. For those interested in exploring further insights, there are additional 11 InvestingPro Tips available, which could provide a deeper understanding of the company's performance and outlook. To gain access to these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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