Clearwater Paper Corporation (NYSE:CLW), a premier supplier of private label tissue and paperboard products, has seen its stock price touch a 52-week low, trading at $24.15. According to InvestingPro data, the company maintains a GOOD financial health score and boasts a strong free cash flow yield, while management has been actively buying back shares. This latest price level reflects a significant downturn from the company's performance over the past year, with the stock experiencing a substantial decline of over 51% in the past six months alone. Investors are closely monitoring Clearwater Paper as it navigates through market pressures and industry-specific headwinds, which have contributed to the stock's downward trajectory and current low standing. For deeper insights into CLW's valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 7 additional key investment tips.
In other recent news, Clearwater Paper Corporation reported an adjusted EBITDA of $64 million for the third quarter of 2024, which aligned with the company's guidance range despite being affected by Hurricane Helene. The company also announced the completion of its tissue business sale to Sofidel for $1.06 billion, marking its transition towards becoming a leading paperboard packaging supplier. The net proceeds of around $850 million from this sale will be dedicated to debt reduction.
Clearwater Paper anticipates a decline in its fourth-quarter adjusted EBITDA due to the sale of the tissue business and a major maintenance outage. The company is also refocusing on paperboard packaging, targeting $1.8 billion in revenue at high utilization rates, and aims for $50 million in annual cost savings through fixed costs reduction and SG&A optimization. Despite the projected decline in adjusted EBITDA of $25 million to $30 million in Q4 and an additional $2 million to $3 million impact expected from Hurricane Helene, the company maintains a strong position in the paperboard packaging market post the tissue business sale.
The company is also exploring expansion into CUK supply due to its limited availability in the independent market. These are among the recent developments in the company's strategic direction and financial performance. In addition, Clearwater Paper has notified its executive officers and directors of an upcoming trading blackout period due to the anticipated completion of the sale of its consumer products division to Sofidel America Corp. This blackout period is part of the company's compliance with federal regulations during significant corporate events.
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