Domtar Corp (NYSE:UFS) (TSE:UFS) was the recipient of a large decrease in short interest in the month of August. As of August 31st, there was short interest totalling 3,598,800 shares, a decrease of 14.8% from the July 31st total of 4,224,200 shares. Based on an average daily volume of 654,600 shares, the short-interest ratio is currently 5.5 days. Approximately 5.8% of the shares of the company are short sold.

A number of large investors have recently modified their holdings of UFS. TD Capital Management LLC bought a new position in shares of Domtar in the 2nd quarter valued at about $39,000. Advisory Services Network LLC bought a new position in shares of Domtar in the 2nd quarter valued at about $50,000. AGF Investments LLC boosted its stake in shares of Domtar by 75.1% in the 2nd quarter. AGF Investments LLC now owns 1,250 shares of the basic materials company’s stock valued at $56,000 after purchasing an additional 536 shares during the last quarter. Anderson Fisher LLC bought a new position in shares of Domtar in the 2nd quarter valued at about $104,000. Finally, Centaurus Financial Inc. boosted its stake in shares of Domtar by 1,915.4% in the 2nd quarter. Centaurus Financial Inc. now owns 2,479 shares of the basic materials company’s stock valued at $110,000 after purchasing an additional 2,356 shares during the last quarter. 95.16% of the stock is currently owned by hedge funds and other institutional investors.

Shares of Domtar stock traded up $0.47 during mid-day trading on Friday, reaching $36.09. 789,378 shares of the stock were exchanged, compared to its average volume of 692,863. The company has a market cap of $2.22 billion, a price-to-earnings ratio of 7.83 and a beta of 1.97. The company has a current ratio of 2.20, a quick ratio of 1.09 and a debt-to-equity ratio of 0.34. The firm has a 50-day simple moving average of $35.45 and a 200 day simple moving average of $43.55. Domtar has a fifty-two week low of $31.72 and a fifty-two week high of $54.50.

Domtar (NYSE:UFS) (TSE:UFS) last announced its earnings results on Thursday, August 1st. The basic materials company reported $0.57 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.30). The firm 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 company’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.65 EPS. On average, research analysts predict that Domtar will post 3.65 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Wednesday, October 2nd will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 5.04%. The ex-dividend date of this dividend is Tuesday, October 1st. Domtar’s dividend payout ratio is currently 39.48%.

A number of brokerages have weighed in on UFS. BMO Capital Markets downgraded shares of Domtar from a “market perform” rating to an “underperform” rating and reduced their price target for the company from $52.00 to $39.00 in a report on Wednesday, July 3rd. Vertical Group cut shares of Domtar from a “buy” rating to a “hold” rating in a research note on Tuesday, July 2nd. TheStreet cut shares of Domtar from a “b” rating to a “c+” rating in a research note on Thursday, August 1st. Scotiabank set a $45.00 price objective on shares of Domtar and gave the company a “hold” rating in a research note on Friday, August 30th. Finally, Stephens set a $53.00 price objective on shares of Domtar and gave the company a “buy” rating in a research note on Friday, June 28th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and four have issued a buy rating to the company’s stock. Domtar has a consensus rating of “Hold” and an average target price of $49.93.

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.

Further Reading: What is the price-to-earnings growth (PEG) ratio?

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