Domtar Corporation (UFS) Upgraded to “Strong-Buy” at Zacks Investment Research
Domtar Corporation (NYSE:UFS) (TSE:UFS) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued on Thursday. The brokerage presently has a $51.00 price objective on the basic materials company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 14.63% from the stock’s current price.
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 have also recently issued reports on UFS. BidaskClub cut shares of Domtar Corporation from a “hold” rating to a “sell” rating in a report on Tuesday, July 11th. Scotiabank decreased their price objective on shares of Domtar Corporation from $40.50 to $40.00 and set a “sector perform” rating for the company in a report on Monday, July 31st. ValuEngine cut shares of Domtar Corporation from a “buy” rating to a “hold” rating in a report on Friday, July 28th. Vertical Research reiterated a “buy” rating on shares of Domtar Corporation in a report on Friday, July 28th. Finally, KeyCorp began coverage on shares of Domtar Corporation in a report on Thursday, July 6th. They issued an “underweight” rating and a $33.00 price objective for the company. Two research analysts have rated the stock with a sell rating, five have issued a hold rating, four have given a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $42.13.
Domtar Corporation (NYSE UFS) opened at 44.49 on Thursday. Domtar Corporation has a 52 week low of $33.99 and a 52 week high of $44.72. The firm has a market cap of $2.79 billion, a PE ratio of 16.97 and a beta of 1.49. The firm’s 50 day moving average price is $41.46 and its 200-day moving average price is $38.70.
Domtar Corporation (NYSE:UFS) (TSE:UFS) last issued its quarterly earnings data on Friday, July 28th. The basic materials company reported $0.61 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.08. The firm had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.31 billion. Domtar Corporation had a net margin of 3.23% and a return on equity of 6.47%. Domtar Corporation’s revenue for the quarter was down 3.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.61 earnings per share. On average, analysts forecast that Domtar Corporation will post $2.52 EPS for the current year.
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In related news, insider Michael Dennis Garcia sold 4,712 shares of the stock in a transaction dated Tuesday, September 19th. The shares were sold at an average price of $42.73, for a total value of $201,343.76. Following the completion of the sale, the insider now owns 4,712 shares in the company, valued at $201,343.76. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Michael Fagan sold 4,154 shares of the 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 completion of the sale, the insider now owns 10,649 shares of the company’s stock, valued at approximately $440,868.60. The disclosure for this sale can be found here. In the last quarter, insiders sold 13,766 shares of company stock valued at $569,809. 1.04% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Prudential Financial Inc. lifted its stake 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 during the period. Bank of America Corp DE lifted its stake 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 during the period. SG Americas Securities LLC lifted its stake 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 during the period. BNP Paribas Arbitrage SA lifted its stake in shares of Domtar Corporation by 891.5% in the second quarter. BNP Paribas Arbitrage SA now owns 150,907 shares of the basic materials company’s stock valued at $5,798,000 after buying an additional 135,687 shares during the period. Finally, Marshall Wace North America L.P. bought a new stake in shares of Domtar Corporation in the second quarter valued at about $6,600,000. Institutional investors and hedge funds own 91.25% of the company’s stock.
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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