Zacks Investment Research upgraded shares of Domtar (NYSE:UFS) (TSE:UFS) from a hold rating to a buy rating in a report published on Friday, Zacks.com reports. They currently have $56.00 price objective on the basic materials company’s stock.
According to Zacks, “Domtar expects higher paper shipments in response to elevated demand in 2019. Management anticipates a positive momentum in the paper and pulp markets, driven by healthy demand and strong fundamentals across its portfolio. Domtar will benefit from the margin-improvement plan and new customer wins within the Personal Care Division in the current year. Moreover, the company remains well poised to benefit from its focus on balanced capital-deployment approach. The stock has outperformed the industry it belongs to, over the past year. “
A number of other research firms have also issued reports on UFS. TD Securities boosted their price target on shares of Domtar from $45.00 to $51.00 and gave the company a hold rating in a report on Wednesday, February 6th. TheStreet upgraded shares of Domtar from a c rating to a b rating in a report on Wednesday, February 6th. Royal Bank of Canada lowered shares of Domtar from an outperform rating to a sector perform rating and boosted their price target for the company from $50.00 to $55.00 in a report on Wednesday, February 6th. Raymond James restated a market perform rating and set a $52.00 price target on shares of Domtar in a report on Wednesday, February 6th. Finally, UFS restated a sell rating on shares of Domtar in a report on Thursday, February 21st. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has given a buy rating to the company. Domtar currently has a consensus rating of Hold and a consensus price target of $49.25.
UFS stock opened at $48.97 on Friday. Domtar has a 52-week low of $33.81 and a 52-week high of $54.50. The company has a current ratio of 2.03, a quick ratio of 1.06 and a debt-to-equity ratio of 0.34. The company has a market cap of $3.12 billion, a PE ratio of 10.62, a PEG ratio of 1.84 and a beta of 2.01.
Domtar (NYSE:UFS) (TSE:UFS) last released its quarterly earnings results on Tuesday, February 5th. The basic materials company reported $1.63 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.62 by $0.01. Domtar had a net margin of 5.19% and a return on equity of 11.59%. The business had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same quarter in the previous year, the business earned $0.64 earnings per share. The firm’s revenue was up 4.1% compared to the same quarter last year. Equities research analysts anticipate that Domtar will post 5.37 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Shareholders of record on Tuesday, April 2nd were paid a $0.435 dividend. The ex-dividend date was Monday, April 1st. This represents a $1.74 annualized dividend and a yield of 3.55%. Domtar’s dividend payout ratio is presently 37.74%.
In other Domtar news, VP Daniel Buron sold 13,591 shares of the company’s stock in a transaction that occurred on Wednesday, February 20th. The shares were sold at an average price of $53.42, for a total value of $726,031.22. Following the transaction, the vice president now owns 4,982 shares in the company, valued at approximately $266,138.44. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO John David Williams sold 50,779 shares of the company’s stock in a transaction that occurred on Friday, February 22nd. The shares were sold at an average price of $52.73, for a total transaction of $2,677,576.67. Following the completion of the transaction, the chief executive officer now owns 16,373 shares in the company, valued at approximately $863,348.29. The disclosure for this sale can be found here. In the last quarter, insiders sold 148,129 shares of company stock worth $7,765,651. Company insiders own 0.95% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. increased its stake in shares of Domtar by 6.3% during the 4th quarter. BlackRock Inc. now owns 8,167,471 shares of the basic materials company’s stock worth $286,923,000 after purchasing an additional 487,215 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Domtar by 4.2% during the 3rd quarter. Vanguard Group Inc. now owns 6,430,521 shares of the basic materials company’s stock worth $335,480,000 after purchasing an additional 257,488 shares during the last quarter. Vanguard Group Inc increased its stake in shares of Domtar by 4.2% during the 3rd quarter. Vanguard Group Inc now owns 6,430,521 shares of the basic materials company’s stock worth $335,480,000 after purchasing an additional 257,488 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Domtar by 2.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 5,163,540 shares of the basic materials company’s stock worth $181,395,000 after purchasing an additional 145,552 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its stake in shares of Domtar by 1.3% during the 4th quarter. Bank of New York Mellon Corp now owns 1,360,051 shares of the basic materials company’s stock worth $47,778,000 after purchasing an additional 17,660 shares during the last quarter. Hedge funds and other institutional investors own 92.96% of the company’s stock.
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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