Clearwater Paper stock hits 52-week low at $27.59

Clearwater Paper Corporation (NYSE:CLW) shares have touched a 52-week low, dipping to $27.59, signaling a challenging period for the company amidst a volatile market. This latest price level reflects a significant downturn from the previous year, with the stock experiencing a 1-year change of -22.96%. Investors are closely monitoring the company's performance, as this new low point could represent a critical juncture for Clearwater Paper's market valuation and future prospects.

In other recent news, Clearwater Paper has been making significant strategic moves. The company announced the sale of its tissue unit to Sofidel America Corporation for $1.06 billion, a decision expected to allow Clearwater Paper to focus more on its paperboard operations. The transaction is anticipated to close in late 2024, pending customary conditions, including antitrust approvals.

Clearwater Paper's Q2 2024 report showed an adjusted EBITDA of $35.3 million, slightly lower than RBC Capital's forecast of $38.2 million. Despite this, RBC Capital raised its price target for Clearwater Paper to $48 while maintaining a Sector Perform rating, recognizing the company's efforts in executing two significant transactions and establishing a future strategy.

Furthermore, Clearwater Paper reported an adjusted EBITDA of $61.5 million for the first quarter of 2024, exceeding RBC Capital Markets' estimate, and announced net sales of $496 million, largely due to significant contributions from its tissue business. The company also disclosed a $23 million investment in a new facial tissue converting line at its Shelby, North Carolina plant. These are among the recent developments that investors are closely monitoring in relation to Clearwater Paper's financial health and strategic direction.

InvestingPro Insights

Clearwater Paper Corporation's recent touch of a 52-week low aligns with several key insights from InvestingPro. The stock's significant decline is reflected in InvestingPro data, which shows a 3-month price total return of -40.4% and a 6-month return of -34.74%. This downward trend is further emphasized by an InvestingPro Tip noting that the stock has "taken a big hit over the last six months."

Despite the challenging price action, Clearwater Paper's valuation metrics present a mixed picture. The company's P/E Ratio (Adjusted) stands at 7.05, suggesting a potentially undervalued position relative to earnings. This is supported by an InvestingPro Tip indicating that the "valuation implies a strong free cash flow yield," which could be of interest to value investors looking for opportunities in the current market.

It's worth noting that while the stock is facing headwinds, InvestingPro Tips also highlight that management has been "aggressively buying back shares," which may signal confidence in the company's long-term prospects. For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Clearwater Paper, providing a deeper understanding of the company's financial health and market position.

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