Domtar (NYSE:UFS) Price Target Cut to $45.00

Domtar (NYSE:UFS) (TSE:UFS) had its price target lowered by Raymond James from $48.00 to $45.00 in a report released on Friday, BayStreet.CA reports. The firm currently has a market perform rating on the basic materials company’s stock. Raymond James also issued estimates for Domtar’s Q4 2019 earnings at $1.05 EPS.

UFS has been the subject of a number of other research reports. BMO Capital Markets downgraded shares of Domtar from a market perform rating to an underperform rating and cut their price target for the stock from $52.00 to $39.00 in a report on Wednesday, July 3rd. Zacks Investment Research downgraded shares of Domtar from a buy rating to a hold rating in a report on Saturday, April 13th. ValuEngine downgraded shares of Domtar from a sell rating to a strong sell rating in a report on Thursday. Vertical Group downgraded shares of Domtar from a buy rating to a hold rating in a report on Tuesday, July 2nd. Finally, Vertical Research downgraded shares of Domtar from a buy rating to a hold rating in a report on Tuesday, July 2nd. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating and four have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $50.31.

UFS stock traded up $0.41 during mid-day trading on Friday, reaching $36.40. The company’s stock had a trading volume of 14,029 shares, compared to its average volume of 689,126. The stock has a market cap of $2.27 billion, a PE ratio of 7.81 and a beta of 1.89. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.11 and a current ratio of 2.20. Domtar has a fifty-two week low of $33.81 and a fifty-two week high of $54.50. The company’s 50 day moving average price is $42.52.

Domtar (NYSE:UFS) (TSE:UFS) last released its quarterly earnings data on Thursday, August 1st. The basic materials company reported $0.57 EPS for the quarter, missing the Zacks’ consensus estimate of $0.87 by ($0.30). The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.36 billion. Domtar had a net margin of 5.21% and a return on equity of 12.48%. The firm’s revenue was down 2.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.65 EPS. On average, research analysts forecast that Domtar will post 4.82 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 16th. Investors of record on Tuesday, July 2nd were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 5.00%. The ex-dividend date was Monday, July 1st. This is an increase from Domtar’s previous quarterly dividend of $0.44. Domtar’s dividend payout ratio (DPR) is 39.48%.

A number of institutional investors have recently bought and sold shares of UFS. Norges Bank acquired a new stake in Domtar in the 4th quarter valued at approximately $30,536,000. American Century Companies Inc. increased its holdings in Domtar by 5,973.2% in the 4th quarter. American Century Companies Inc. now owns 795,532 shares of the basic materials company’s stock valued at $27,947,000 after purchasing an additional 782,433 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Domtar by 2.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 5,163,540 shares of the basic materials company’s stock valued at $181,395,000 after purchasing an additional 145,552 shares during the last quarter. First Trust Advisors LP increased its holdings in Domtar by 139.7% in the 2nd quarter. First Trust Advisors LP now owns 204,192 shares of the basic materials company’s stock valued at $9,093,000 after purchasing an additional 118,995 shares during the last quarter. Finally, APG Asset Management N.V. increased its holdings in Domtar by 270.0% in the 4th quarter. APG Asset Management N.V. now owns 157,600 shares of the basic materials company’s stock valued at $4,843,000 after purchasing an additional 115,000 shares during the last quarter. Hedge funds and other institutional investors own 94.23% of the company’s stock.

About Domtar

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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Analyst Recommendations for Domtar (NYSE:UFS)

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