Traders Purchase Large Volume of Domtar Call Options (UFS)

Domtar Corp (NYSE:UFS) (TSE:UFS) was the target of unusually large options trading on Thursday. Stock investors bought 2,486 call options on the company. This represents an increase of 1,483% compared to the typical daily volume of 157 call options.

Institutional investors and hedge funds have recently modified their holdings of the business. Principal Financial Group Inc. raised its stake in shares of Domtar by 2.5% in the first quarter. Principal Financial Group Inc. now owns 273,787 shares of the basic materials company’s stock valued at $11,647,000 after buying an additional 6,663 shares during the period. Renaissance Technologies LLC grew its position in shares of Domtar by 166.2% in the second quarter. Renaissance Technologies LLC now owns 223,442 shares of the basic materials company’s stock valued at $10,667,000 after purchasing an additional 139,500 shares in the last quarter. Cubist Systematic Strategies LLC purchased a new position in shares of Domtar in the second quarter valued at $547,000. BlackRock Inc. grew its position in shares of Domtar by 2.1% in the second quarter. BlackRock Inc. now owns 7,773,497 shares of the basic materials company’s stock valued at $371,108,000 after purchasing an additional 158,605 shares in the last quarter. Finally, Fox Run Management L.L.C. purchased a new position in shares of Domtar in the third quarter valued at $451,000. Hedge funds and other institutional investors own 90.46% of the company’s stock.

UFS has been the topic of a number of recent analyst reports. Citigroup lifted their price target on Domtar from $41.00 to $44.00 and gave the stock a “sell” rating in a report on Tuesday, July 10th. TheStreet lowered Domtar from a “b-” rating to a “c+” rating in a report on Monday, July 9th. National Bank Financial lifted their price target on Domtar from $45.00 to $48.00 and gave the stock a “sector perform” rating in a report on Monday, July 30th. KeyCorp upgraded Domtar from an “underweight” rating to a “sector weight” rating in a report on Wednesday, August 1st. Finally, Royal Bank of Canada lifted their price target on Domtar from $52.00 to $54.00 and gave the stock an “outperform” rating in a report on Thursday, August 2nd. Twelve investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Domtar currently has an average rating of “Hold” and a consensus target price of $48.69.

Shares of UFS opened at $47.02 on Friday. The firm has a market capitalization of $2.85 billion, a price-to-earnings ratio of 14.15, a PEG ratio of 2.37 and a beta of 1.57. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.31 and a current ratio of 2.31. Domtar has a 1 year low of $40.72 and a 1 year high of $54.50.

Domtar (NYSE:UFS) (TSE:UFS) last issued its earnings results on Thursday, November 1st. The basic materials company reported $1.46 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.14 by $0.32. The firm had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.42 billion. Domtar had a positive return on equity of 7.79% and a negative net margin of 3.25%. The business’s revenue was up 6.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.03 earnings per share. Research analysts anticipate that Domtar will post 3.82 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Monday, October 15th. Shareholders of record on Tuesday, October 2nd were paid a $0.435 dividend. The ex-dividend date was Monday, October 1st. This represents a $1.74 annualized dividend and a dividend yield of 3.70%. Domtar’s payout ratio is presently 66.92%.

Domtar Company Profile

Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use.

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