Zacks Investment Research Downgrades Domtar Corporation (NYSE:UFS) to Hold

Domtar Corporation (NYSE:UFS) (TSE:UFS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, October 17th.

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.”

Other equities analysts also recently issued reports about the stock. ValuEngine raised shares of Domtar Corporation from a “hold” rating to a “buy” rating in a report on Friday, September 8th. Vertical Research reaffirmed a “buy” rating on shares of Domtar Corporation in a report on Friday, July 28th. BidaskClub raised shares of Domtar Corporation from a “sell” rating to a “hold” rating in a report on Wednesday, July 19th. Scotiabank cut their price objective on shares of Domtar Corporation from $40.50 to $40.00 and set a “sector perform” rating on the stock in a report on Monday, July 31st. Finally, KeyCorp set a $33.00 target price on Domtar Corporation and gave the stock a “sell” rating in a research note on Thursday, October 12th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and four have given a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $43.30.

Shares of Domtar Corporation (NYSE UFS) traded down $0.72 on Tuesday, hitting $46.49. The stock had a trading volume of 634,333 shares, compared to its average volume of 726,930. Domtar Corporation has a 12-month low of $33.99 and a 12-month high of $48.07. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.20 and a current ratio of 2.29. The company has a market capitalization of $2,959.77, a PE ratio of 17.42, a PEG ratio of 3.61 and a beta of 1.54.

Domtar Corporation (NYSE:UFS) (TSE:UFS) last posted its quarterly earnings data on Friday, October 27th. The basic materials company reported $1.03 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.73 by $0.30. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. Domtar Corporation had a net margin of 3.44% and a return on equity of 6.17%. The business’s revenue for the quarter was up 1.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.13 EPS. equities analysts expect that Domtar Corporation will post 2.61 earnings per share for the current year.

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In related news, insider Michael Dennis Garcia sold 4,712 shares of the business’s stock in a transaction dated Tuesday, September 19th. The stock was sold at an average price of $42.73, for a total value of $201,343.76. Following the sale, the insider now directly owns 4,712 shares in the company, valued at approximately $201,343.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 value of $171,975.60. Following the completion of the sale, the insider now owns 10,649 shares in the company, valued at $440,868.60. The disclosure for this sale can be found here. Insiders sold a total of 13,766 shares of company stock worth $569,809 over the last 90 days. 1.04% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently made changes to their positions in UFS. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Domtar Corporation by 14.0% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,610 shares of the basic materials company’s stock valued at $100,000 after buying an additional 320 shares during the period. LS Investment Advisors LLC increased its position in shares of Domtar Corporation by 20.2% during the second quarter. LS Investment Advisors LLC now owns 5,143 shares of the basic materials company’s stock valued at $198,000 after buying an additional 866 shares during the period. Bridgewater Associates LP bought a new stake in shares of Domtar Corporation during the second quarter valued at about $200,000. Campbell & CO Investment Adviser LLC bought a new stake in shares of Domtar Corporation during the second quarter valued at about $218,000. Finally, Teacher Retirement System of Texas bought a new stake in shares of Domtar Corporation during the third quarter valued at about $224,000. Hedge funds and other institutional investors own 90.67% of the company’s stock.

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.

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