Zacks Investment Research upgraded shares of Domtar Corporation (NYSE:UFS) (TSE:UFS) from a hold rating to a strong-buy rating in a report released on Thursday morning. They currently have $51.00 price objective on the basic materials company’s stock.
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. At the same time, Domtar is expanding its fiber-based business through acquisitions, strategic investments in capacity building and repurposing of assets. The strategic acquisition of Butterfly Health will extend the Personal Care segment of Domtar with complementary products and augment its global footprint in healthcare markets. 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.”
A number of other equities research analysts also recently commented on the company. ValuEngine raised Domtar Corporation from a hold rating to a buy rating in a report on Friday, September 8th. KeyCorp assumed coverage on Domtar Corporation in a report on Thursday, July 6th. They issued an underweight rating and a $33.00 price target for the company. Vertical Research reissued a buy rating on shares of Domtar Corporation in a report on Friday, July 28th. BidaskClub downgraded Domtar Corporation from a hold rating to a sell rating in a report on Thursday, July 27th. Finally, Scotiabank decreased their price target on Domtar Corporation from $40.50 to $40.00 and set a sector perform rating for the company in a report on Monday, July 31st. Three research analysts have rated the stock with a sell rating, four have issued a hold rating, four have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $42.25.
Domtar Corporation (NYSE UFS) opened at 42.20 on Thursday. The stock has a market capitalization of $2.64 billion, a P/E ratio of 16.09 and a beta of 1.49. Domtar Corporation has a 12 month low of $33.99 and a 12 month high of $44.72. The firm’s 50-day moving average is $41.62 and its 200-day moving average is $38.75.
Domtar Corporation (NYSE:UFS) (TSE:UFS) last released its earnings results on Friday, July 28th. The basic materials company reported $0.61 EPS 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 firm had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the previous year, the company posted $0.61 earnings per share. The company’s revenue was down 3.4% compared to the same quarter last year. On average, equities analysts expect that Domtar Corporation will post $2.54 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Monday, October 2nd will be issued a $0.415 dividend. This represents a $1.66 dividend on an annualized basis and a yield of 3.93%. The ex-dividend date of this dividend is Friday, September 29th. Domtar Corporation’s payout ratio is presently 63.36%.
In other Domtar Corporation news, insider Michael Dennis Garcia sold 4,712 shares of the business’s stock in a transaction that occurred on Tuesday, September 19th. The stock was sold at an average price of $42.73, for a total value of $201,343.76. Following the completion of the transaction, the insider now directly owns 4,712 shares of the company’s stock, valued at $201,343.76. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Daniel Buron sold 4,900 shares of the business’s stock in a transaction that occurred on Monday, August 21st. The shares were 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 directly owns 15,126 shares of the company’s stock, valued at $606,552.60. The disclosure for this sale can be found here. Insiders sold 13,766 shares of company stock valued at $569,809 over the last three months. 1.04% of the stock is currently owned by corporate insiders.
A number of large investors have recently made changes to their positions in the business. Prudential Financial Inc. increased its position in shares of Domtar Corporation by 60.7% in the second quarter. Prudential Financial Inc. now owns 582,928 shares of the basic materials company’s stock valued at $22,396,000 after buying an additional 220,146 shares in the last quarter. Bank of America Corp DE increased its position in shares of Domtar Corporation by 2.7% in the first quarter. Bank of America Corp DE now owns 284,619 shares of the basic materials company’s stock valued at $10,395,000 after buying an additional 7,613 shares in the last quarter. SG Americas Securities LLC increased its position in shares of Domtar Corporation by 24.1% in the second quarter. SG Americas Securities LLC now owns 28,650 shares of the basic materials company’s stock valued at $1,101,000 after buying an additional 5,557 shares in the last quarter. AMG Funds LLC increased its position in shares of Domtar Corporation by 8.4% in the second quarter. AMG Funds LLC now owns 51,215 shares of the basic materials company’s stock valued at $1,968,000 after buying an additional 3,958 shares in the last quarter. Finally, Arizona State Retirement System increased its position in shares of Domtar Corporation by 1.5% in the second quarter. Arizona State Retirement System now owns 26,400 shares of the basic materials company’s stock valued at $1,014,000 after buying an additional 400 shares in the last quarter. 91.25% of the stock is owned by institutional investors.
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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