Domtar Corporation (NYSE:UFS) (TSE:UFS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, October 17th.
According to Zacks, “Domtar is seeking growth through profitable investment opportunities with a commitment to pollution-free environment and sustainable practices. The company is also streamlining the cost structure, improving revenue quality and maintaining a healthy cash flow. The company’s investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach to execute its growth strategy. Domtar has outperformed the industry year to date. However, strengthening U.S. dollar against pulp purchasing currencies is expected to hamper price realizations of Domtar's pulp products. The company is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members post Brxit referendum. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering its productivity.”
Other equities analysts have also issued reports about the company. BidaskClub lowered Domtar Corporation from a “hold” rating to a “sell” rating in a research note on Thursday, July 27th. ValuEngine downgraded Domtar Corporation from a “buy” rating to a “hold” rating in a research report on Friday, July 28th. KeyCorp set a $33.00 price target on Domtar Corporation and gave the company a “sell” rating in a research report on Thursday, October 12th. Citigroup Inc. reissued a “sell” rating and set a $40.00 price target (down previously from $41.00) on shares of Domtar Corporation in a research report on Thursday, October 5th. Finally, Scotiabank lowered their price target on Domtar Corporation from $40.50 to $40.00 and set a “sector perform” rating for the company in a research report on Monday, July 31st. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $42.33.
Domtar Corporation (UFS) opened at 44.19 on Tuesday. Domtar Corporation has a 12-month low of $33.99 and a 12-month high of $44.72. The stock has a market capitalization of $2.77 billion, a price-to-earnings ratio of 16.85 and a beta of 1.49. The company has a 50 day moving average of $43.03 and a 200-day moving average of $39.41.
Domtar Corporation (NYSE:UFS) (TSE:UFS) last released its quarterly earnings results on Friday, July 28th. The basic materials company reported $0.61 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.08. Domtar Corporation had a return on equity of 6.47% and a net margin of 3.23%. The company had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.31 billion. During the same period in the previous year, the firm posted $0.61 earnings per share. The business’s revenue for the quarter was down 3.4% compared to the same quarter last year. On average, equities research analysts forecast that Domtar Corporation will post $2.53 earnings per share for the current year.
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In related news, VP Daniel Buron sold 4,900 shares of the stock in a transaction dated Monday, August 21st. The stock was sold at an average price of $40.10, for a total value of $196,490.00. Following the completion of the transaction, the vice president now owns 15,126 shares of the company’s stock, valued at $606,552.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Michael Fagan sold 4,154 shares of the stock in a transaction dated Monday, September 11th. The shares were sold at an average price of $41.40, for a total value of $171,975.60. Following the completion of the transaction, the insider now directly owns 10,649 shares of the company’s stock, valued at approximately $440,868.60. The disclosure for this sale can be found here. Insiders sold 13,766 shares of company stock valued at $569,809 in the last ninety days. Company insiders own 1.04% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in UFS. BlackRock Inc. raised its stake in Domtar Corporation by 8,753.9% during the first quarter. BlackRock Inc. now owns 10,377,062 shares of the basic materials company’s stock valued at $378,971,000 after buying an additional 10,259,859 shares in the last quarter. QV Investors Inc. acquired a new stake in Domtar Corporation during the second quarter valued at approximately $219,260,000. Pictet Asset Management Ltd. acquired a new stake in Domtar Corporation during the third quarter valued at approximately $20,535,000. First Eagle Investment Management LLC acquired a new stake in Domtar Corporation during the second quarter valued at approximately $10,436,000. Finally, Renaissance Technologies LLC raised its stake in Domtar Corporation by 1,243.6% during the first quarter. Renaissance Technologies LLC now owns 280,042 shares of the basic materials company’s stock valued at $10,227,000 after buying an additional 259,200 shares in the last quarter. Hedge funds and other institutional investors own 90.89% of the company’s stock.
About Domtar Corporation
Domtar Corporation designs, manufactures, markets and distributes a range of fiber-based products, including communication papers, specialty and packaging papers and absorbent hygiene products. The Company segments include Pulp and Paper and Personal Care. The Pulp and Paper segment consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp.
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