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Jean-Michel Ribieras, Chairman and CEO of Sylvamo Corp (NYSE:SLVM), sold 21,250 shares of the company’s common stock on March 10, 2025. The transaction, executed under a Rule 10b5-1 trading plan, amounted to a total value of approximately $1.39 million, with an average sale price of $65.53 per share.
Following the sale, Ribieras retains ownership of 153,144 shares. The sale was carried out automatically as part of a pre-established trading plan adopted in November 2024. Despite this insider sale, InvestingPro data shows management has been actively buying back shares, demonstrating confidence in the company’s future.
Sylvamo Corp, headquartered in Memphis, Tennessee, operates in the paper mill industry. The company continues to be led by Ribieras, who holds both the Chairman and CEO positions. The company maintains a strong financial health score of "GREAT" according to InvestingPro, with a notable dividend yield of 2.69% and impressive return on equity of 35%.
In other recent news, Sylvamo reported its fourth-quarter earnings for 2024, surpassing analyst expectations with earnings per share (EPS) of $1.96, compared to the forecasted $1.80. The company’s revenue reached $970 million, slightly above the consensus estimate of $965.41 million. Despite this positive performance, Sylvamo’s stock experienced a decline, reflecting investor concerns about future market conditions and challenges. Additionally, Sylvamo announced a significant investment of approximately $145 million in its South Carolina operations, aimed at upgrading production capabilities and reducing costs. This includes a $100 million upgrade to a paper machine at the Eastover mill and a $45 million investment in a new cutsize sheeter at the Sumter sheeting plant.
The company also projected a cautious outlook for the first quarter of 2025, expecting adjusted EBITDA to be between $85 million and $105 million, with anticipated challenges in Europe due to maintenance costs. Sylvamo’s strategic initiatives include a 20-year partnership to outsource woodyard operations at Eastover, expected to enhance efficiency and avoid $75 million in capital expenditures. CEO Jean-Michel Ribiéras highlighted the company’s achievements, such as a 23% return on invested capital and significant debt repayment, while emphasizing ongoing cost reduction efforts through Project Horizon. Despite the positive full-year performance, investors appear focused on short-term cost increases and seasonal impacts on the company’s performance.
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