Zacks Investment Research upgraded shares of Domtar (NYSE:UFS) (TSE:UFS) from a hold rating to a buy rating in a research report report published on Friday morning, Zacks.com reports. They currently have $56.00 price target 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. “
Several other research firms also recently weighed in on UFS. TD Securities boosted their target price on shares of Domtar from $45.00 to $51.00 and gave the stock a hold rating in a research report on Wednesday, February 6th. TheStreet raised shares of Domtar from a c rating to a b rating in a research report on Wednesday, February 6th. Royal Bank of Canada downgraded shares of Domtar from an outperform rating to a sector perform rating and boosted their target price for the stock from $50.00 to $55.00 in a research report on Wednesday, February 6th. Raymond James reaffirmed a market perform rating and set a $52.00 price objective on shares of Domtar in a research report on Wednesday, February 6th. Finally, UFS reaffirmed a sell rating on shares of Domtar in a research report on Thursday, February 21st. Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has issued a buy rating to the stock. The company presently has an average rating of Hold and an average target price of $49.25.
UFS opened at $48.97 on Friday. The stock has a market capitalization of $3.12 billion, a PE ratio of 10.62, a P/E/G ratio of 1.84 and a beta of 2.01. Domtar has a 1-year low of $33.81 and a 1-year high of $54.50. The company has a quick ratio of 1.06, a current ratio of 2.03 and a debt-to-equity ratio of 0.34.
Domtar (NYSE:UFS) (TSE:UFS) last released its earnings results on Tuesday, February 5th. The basic materials company reported $1.63 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.62 by $0.01. The company had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.44 billion. Domtar had a net margin of 5.19% and a return on equity of 11.59%. The company’s revenue was up 4.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.64 EPS. On average, equities analysts expect that Domtar will post 5.37 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Investors of record on Tuesday, April 2nd were given a dividend of $0.435 per share. This represents a $1.74 dividend on an annualized basis and a dividend yield of 3.55%. The ex-dividend date was Monday, April 1st. Domtar’s dividend payout ratio is presently 37.74%.
In related news, SVP Zygmunt Jablonski sold 2,864 shares of the business’s stock in a transaction dated Tuesday, February 19th. The shares were sold at an average price of $52.17, for a total transaction of $149,414.88. Following the completion of the sale, the senior vice president now owns 20,128 shares of the company’s stock, valued at approximately $1,050,077.76. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO John David Williams sold 50,779 shares of the business’s stock in a transaction dated 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 sale, the chief executive officer now directly owns 16,373 shares of the company’s stock, valued at approximately $863,348.29. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 148,129 shares of company stock valued at $7,765,651. Insiders own 0.95% of the company’s stock.
A number of institutional investors have recently bought and sold shares of the business. Retirement Systems of Alabama boosted its stake in Domtar by 0.3% during the 4th quarter. Retirement Systems of Alabama now owns 81,556 shares of the basic materials company’s stock valued at $2,865,000 after purchasing an additional 277 shares during the period. American International Group Inc. boosted its stake in Domtar by 0.3% during the 4th quarter. American International Group Inc. now owns 128,203 shares of the basic materials company’s stock valued at $4,504,000 after purchasing an additional 359 shares during the period. Arizona State Retirement System boosted its stake in Domtar by 1.1% during the 4th quarter. Arizona State Retirement System now owns 45,147 shares of the basic materials company’s stock valued at $1,586,000 after purchasing an additional 488 shares during the period. Oregon Public Employees Retirement Fund boosted its stake in Domtar by 2.0% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 24,991 shares of the basic materials company’s stock valued at $878,000 after purchasing an additional 492 shares during the period. Finally, Comerica Bank boosted its stake in Domtar by 1.6% during the 4th quarter. Comerica Bank now owns 41,750 shares of the basic materials company’s stock valued at $1,918,000 after purchasing an additional 658 shares during the period. 92.96% of the stock is owned by hedge funds and other institutional investors.
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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