Clearwater Paper (NYSE:CLW) Shares Break Below 200-Day Moving Average After Earnings Miss

Clearwater Paper Corporation (NYSE:CLW) crossed below its two hundred day moving average during trading on Tuesday following a weaker than expected earnings announcement. The stock has a two hundred day moving average of $17.24 and traded as low as $12.90. Clearwater Paper shares last traded at $13.5810, with a volume of 1,471,128 shares.

The basic materials company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.07). The firm had revenue of $384.90 million during the quarter, compared to analyst estimates of $388.39 million.

Trending Headlines about Clearwater Paper

Here are the key news stories impacting Clearwater Paper this week:

• Positive Sentiment: Clearwater Paper narrowed its third-quarter net loss to approximately $1.6 million, or $0.10 per share, from a $53.3 million loss a year earlier. The company also completed a refinancing of all debt, received $17.5 million in additional insurance proceeds, and reduced net debt to $260.7 million from $316.7 million at year-end. Clearwater Paper Posts Third-Quarter Results
• Positive Sentiment: Royal Bank of Canada maintained an “outperform” rating, although it lowered its price target from $23 to $22, implying substantial potential upside from recent levels. Royal Bank of Canada Clearwater Paper Rating
• Neutral Sentiment: Unusual options activity saw investors purchase 5,097 call contracts, roughly 790% above typical volume. This may signal speculative bullish interest, but options activity alone does not establish a change in Clearwater Paper’s fundamentals.
• Neutral Sentiment: Truist Financial lowered its price target from $20 to $17 and kept a “hold” rating, indicating a more cautious outlook even though the target remains above the current share price. Truist Financial Clearwater Paper Rating
• Negative Sentiment: Quarterly adjusted EPS was $0.23 below analysts’ expected loss of $0.16, while revenue of $384.9 million also missed the $388.4 million consensus estimate. Sales declined from $399 million a year earlier, primarily because of lower market pricing.
• Negative Sentiment: Disruptions at the Augusta mill hurt late-quarter volumes and costs. Sales volume fell 1% year over year, and paperboard’s average selling price declined 4%, reinforcing concerns about near-term profitability and execution. Clearwater Paper Augusta Mill Update

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Royal Bank Of Canada decreased their price objective on Clearwater Paper from $23.00 to $22.00 and set an “outperform” rating for the company in a research report on Tuesday. Truist Financial dropped their target price on Clearwater Paper from $20.00 to $17.00 and set a “hold” rating on the stock in a report on Tuesday. Zacks Research upgraded Clearwater Paper to a “hold” rating in a report on Monday, July 6th. Bank of America increased their price target on shares of Clearwater Paper from $24.00 to $25.00 and gave the stock a “neutral” rating in a research report on Friday, September 11th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Clearwater Paper in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $19.67.

Institutional Investors Weigh In On Clearwater Paper

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Group One Trading LLC acquired a new stake in shares of Clearwater Paper during the 2nd quarter valued at about $25,000. Quantbot Technologies LP bought a new stake in shares of Clearwater Paper in the 2nd quarter valued at approximately $27,000. Farther Finance Advisors LLC increased its holdings in Clearwater Paper by 110.7% in the third quarter. Farther Finance Advisors LLC now owns 2,069 shares of the basic materials company’s stock worth $40,000 after buying an additional 1,087 shares during the last quarter. Versant Capital Management Inc increased its holdings in Clearwater Paper by 26.4% in the second quarter. Versant Capital Management Inc now owns 4,627 shares of the basic materials company’s stock worth $73,000 after buying an additional 965 shares during the last quarter. Finally, Hsbc Holdings PLC acquired a new position in Clearwater Paper in the second quarter worth approximately $210,000. 89.98% of the stock is owned by hedge funds and other institutional investors.

Clearwater Paper Stock Down 29.3%

The business has a fifty day moving average of $20.09 and a 200 day moving average of $17.24.

About Clearwater Paper

Clearwater Paper Corporation is a manufacturer of bleached paperboard and pulp products. Its paperboard is used in packaging applications such as folding cartons, food and beverage packaging, and other consumer and industrial products. The company also produces pulp used in the manufacture of paper and tissue products.

Clearwater Paper primarily serves customers in North America, supplying packaging manufacturers, consumer-products companies, and other converters. Its operations have included paper mills in the United States, including facilities in Idaho and Arkansas, with products marketed to a range of food, beverage, household, and commercial markets.

The company was formed in 2008 through the separation of Potlatch Corporation’s pulp and paperboard businesses.