ValuEngine Lowers Domtar (NYSE:UFS) to Strong Sell

ValuEngine cut shares of Domtar (NYSE:UFS) (TSE:UFS) from a sell rating to a strong sell rating in a report issued on Thursday, ValuEngine reports.

Several other analysts have also recently commented on UFS. Bank of America upgraded shares of Domtar from a neutral rating to a buy rating in a report on Tuesday, April 30th. Vertical Research cut shares of Domtar from a buy rating to a hold rating in a report on Tuesday, July 2nd. TD Securities decreased their price target on shares of Domtar from $51.00 to $50.00 and set a hold rating for the company in a report on Thursday, May 2nd. Stephens set a $53.00 price target on shares of Domtar and gave the stock a buy rating in a report on Friday, June 28th. Finally, Goldman Sachs Group raised shares of Domtar from a neutral rating to a buy rating and raised their price objective for the company from $51.00 to $56.00 in a research report on Friday, May 3rd. Three analysts have rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company. The company presently has an average rating of Hold and an average price target of $50.31.

Shares of UFS stock traded up $0.41 during trading on Thursday, hitting $36.40. 14,029 shares of the company were exchanged, compared to its average volume of 689,126. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.20 and a quick ratio of 1.11. The company has a market capitalization of $2.27 billion, a price-to-earnings ratio of 7.81 and a beta of 1.89. The business’s 50-day moving average is $42.52. Domtar has a twelve month low of $33.81 and a twelve month high of $54.50.

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

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 16th. Investors of record on Tuesday, July 2nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 5.00%. The ex-dividend date was Monday, July 1st. This is a positive change from Domtar’s previous quarterly dividend of $0.44. Domtar’s dividend payout ratio (DPR) is presently 39.48%.

A number of institutional investors and hedge funds have recently modified their holdings of UFS. Swiss National Bank boosted its stake in Domtar by 2.1% during the second quarter. Swiss National Bank now owns 117,100 shares of the basic materials company’s stock worth $5,214,000 after buying an additional 2,400 shares in the last quarter. Envestnet Asset Management Inc. acquired a new stake in Domtar during the second quarter worth $544,000. Advisory Services Network LLC acquired a new stake in Domtar during the second quarter worth $50,000. Cutter & CO Brokerage Inc. acquired a new stake in Domtar during the second quarter worth $314,000. Finally, Advisor Group Inc. boosted its stake in Domtar by 8.0% during the second quarter. Advisor Group Inc. now owns 11,605 shares of the basic materials company’s stock worth $517,000 after buying an additional 861 shares in the last quarter. 94.23% of the stock is currently owned by hedge funds and other institutional investors.

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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Analyst Recommendations for Domtar (NYSE:UFS)

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