Zacks Investment Research upgraded shares of Domtar Corporation (NYSE:UFS) (TSE:UFS) from a hold rating to a strong-buy rating in a research note released on Thursday, October 5th. The brokerage currently has $51.00 price objective on the basic materials company’s stock.
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.”
Other equities research analysts have also issued reports about the stock. ValuEngine upgraded shares of Domtar Corporation from a hold rating to a buy rating in a report on Friday, September 8th. Vertical Research restated a buy rating on shares of Domtar Corporation in a report on Friday, July 28th. BidaskClub upgraded shares of Domtar Corporation from a sell rating to a hold rating in a report on Wednesday, June 14th. Scotiabank dropped 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 started coverage on shares of Domtar Corporation in a report on Thursday, July 6th. They set an underweight rating and a $33.00 price objective on the stock. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of Hold and an average target price of $42.25.
Domtar Corporation (UFS) opened at 44.04 on Thursday. The stock has a 50 day moving average of $42.26 and a 200-day moving average of $38.99. The firm has a market capitalization of $2.76 billion, a P/E ratio of 16.80 and a beta of 1.49. Domtar Corporation has a 1-year low of $33.99 and a 1-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 for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the firm posted $0.61 earnings per share. The business’s quarterly revenue was down 3.4% compared to the same quarter last year. On average, equities research analysts anticipate that Domtar Corporation will post $2.53 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 16th. Shareholders of record on Monday, October 2nd were paid a $0.415 dividend. The ex-dividend date was Friday, September 29th. This represents a $1.66 annualized dividend and a yield of 3.77%. Domtar Corporation’s payout ratio is currently 63.36%.
In other news, insider Michael Fagan sold 4,154 shares of Domtar Corporation 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 transaction, the insider now 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 SEC, which is accessible through this hyperlink. Also, VP Daniel Buron sold 4,900 shares of Domtar Corporation stock in a transaction dated Monday, August 21st. The shares were sold at an average price of $40.10, for a total transaction of $196,490.00. Following the completion of the transaction, the vice president now directly owns 15,126 shares of the company’s stock, valued at approximately $606,552.60. 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 quarter. Company insiders own 1.04% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in UFS. BlackRock Inc. grew its position in shares of Domtar Corporation by 8,753.9% in the 1st quarter. BlackRock Inc. now owns 10,377,062 shares of the basic materials company’s stock valued at $378,971,000 after acquiring an additional 10,259,859 shares during the period. QV Investors Inc. bought a new position in shares of Domtar Corporation in the 2nd quarter valued at about $219,260,000. First Eagle Investment Management LLC bought a new position in shares of Domtar Corporation in the 2nd quarter valued at about $10,436,000. Renaissance Technologies LLC grew its position in shares of Domtar Corporation by 1,243.6% in the 1st quarter. Renaissance Technologies LLC now owns 280,042 shares of the basic materials company’s stock valued at $10,227,000 after acquiring an additional 259,200 shares during the period. Finally, Prudential Financial Inc. grew its position in shares of Domtar Corporation by 60.7% in the 2nd quarter. Prudential Financial Inc. now owns 582,928 shares of the basic materials company’s stock valued at $22,396,000 after acquiring an additional 220,146 shares during the period. 91.03% of the stock is owned by 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.
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