Domtar Corporation (NYSE:UFS) (TSE:UFS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

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. 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. The company is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members post Brxit referendum. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering its productivity.”

Several other research firms have also recently commented on UFS. BidaskClub raised shares of Domtar Corporation from a “sell” rating to a “hold” rating in a research report on Wednesday, July 19th. ValuEngine raised shares of Domtar Corporation from a “hold” rating to a “buy” rating in a research report on Friday, September 8th. Vertical Research reaffirmed a “buy” rating on shares of Domtar Corporation in a research report on Friday, July 28th. Citigroup Inc. reaffirmed a “sell” rating and issued a $40.00 price objective (down from $41.00) on shares of Domtar Corporation in a research report on Thursday, October 5th. Finally, KeyCorp set a $33.00 price objective on shares of Domtar Corporation and gave the company a “sell” rating in a research report on Thursday, October 12th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating to the stock. Domtar Corporation has a consensus rating of “Hold” and an average target price of $42.25.

Shares of Domtar Corporation (NYSE UFS) traded down 0.420% during mid-day trading on Tuesday, hitting $43.855. The company had a trading volume of 494,194 shares. The firm’s 50-day moving average price is $42.26 and its 200 day moving average price is $38.99. The company has a market capitalization of $2.75 billion, a P/E ratio of 16.726 and a beta of 1.49. Domtar Corporation has a one year low of $33.99 and a one year high of $44.72.

Domtar Corporation (NYSE:UFS) (TSE:UFS) last announced its quarterly earnings results on Friday, July 28th. The basic materials company reported $0.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.08. Domtar Corporation had a net margin of 3.23% and a return on equity of 6.47%. The company had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the previous year, the business earned $0.61 EPS. The firm’s revenue was down 3.4% on a year-over-year basis. Analysts predict that Domtar Corporation will post $2.53 earnings per share for the current fiscal year.

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In other Domtar Corporation news, insider Michael Fagan sold 4,154 shares of the business’s stock in a transaction dated Monday, September 11th. The shares were sold at an average price of $41.40, for a total transaction of $171,975.60. Following the sale, the insider now directly owns 10,649 shares of the company’s stock, valued at approximately $440,868.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Daniel Buron sold 4,900 shares of the business’s stock in a transaction dated Monday, August 21st. The stock was sold at an average price of $40.10, for a total transaction of $196,490.00. Following the sale, the vice president now directly owns 15,126 shares in the company, valued at $606,552.60. The disclosure for this sale can be found here. Insiders have sold a total of 13,766 shares of company stock worth $569,809 over the last three months. Insiders own 1.04% of the company’s stock.

A number of large investors have recently modified their holdings of UFS. UBS Asset Management Americas Inc. lifted its position in Domtar Corporation by 19.1% during the 1st quarter. UBS Asset Management Americas Inc. now owns 59,564 shares of the basic materials company’s stock worth $2,175,000 after buying an additional 9,545 shares in the last quarter. Victory Capital Management Inc. lifted its position in Domtar Corporation by 46.3% during the 1st quarter. Victory Capital Management Inc. now owns 14,625 shares of the basic materials company’s stock worth $534,000 after buying an additional 4,629 shares in the last quarter. Wellington Management Group LLP lifted its position in Domtar Corporation by 4.4% during the 1st quarter. Wellington Management Group LLP now owns 385,835 shares of the basic materials company’s stock worth $14,091,000 after buying an additional 16,146 shares in the last quarter. Advantus Capital Management Inc lifted its position in Domtar Corporation by 3.0% during the 1st quarter. Advantus Capital Management Inc now owns 8,013 shares of the basic materials company’s stock worth $293,000 after buying an additional 235 shares in the last quarter. Finally, Teachers Advisors LLC lifted its position in Domtar Corporation by 8.0% during the 1st quarter. Teachers Advisors LLC now owns 70,631 shares of the basic materials company’s stock worth $2,579,000 after buying an additional 5,227 shares in the last quarter. 91.03% of the stock is currently owned by hedge funds and other institutional investors.

Domtar Corporation Company Profile

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.

Analyst Recommendations for Domtar Corporation (NYSE:UFS)

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