According to Zacks, “Domtar has a decent earnings surprise history, having beaten estimates on all occasions in the trailing four quarters. The company is seeking growth through profitable investment opportunities with a commitment to pollution-free environment and sustainable practices. The strategic acquisition of Butterfly Health is expected to further augment its global footprint in healthcare markets. Domtar is also streamlining the cost structure, improving revenue quality and maintaining a healthy cash flow with a disciplined approach to cash utilization. However, the revamped market dynamics following Brexit are expected to affect firms like Domtar, which has significant presence in the U.K., with higher tariff and non-tariff barriers to trade affecting its profitability. Global demand for pulp is also likely to be volatile due to U.S. dollar strength and consumer inventory swings, especially in China.”
A number of other research firms also recently commented on UFS. DA Davidson boosted their price objective on shares of Domtar Corp. from $30.00 to $32.00 and gave the stock an underperform rating in a report on Thursday, July 28th. TheStreet raised shares of Domtar Corp. from a hold rating to a buy rating in a report on Wednesday, July 27th. Citigroup Inc. upped their price target on shares of Domtar Corp. from $37.00 to $41.00 and gave the company a neutral rating in a report on Tuesday, August 2nd. Bank of America Corp. raised shares of Domtar Corp. from an underperform rating to a neutral rating in a report on Monday. Finally, Moffett Nathanson raised shares of Domtar Corp. from an underperform rating to a neutral rating in a report on Monday. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the stock. The company has an average rating of Hold and an average price target of $39.71.
Domtar Corp. (NYSE:UFS) traded down 1.75% during mid-day trading on Thursday, reaching $37.68. 244,791 shares of the company traded hands. Domtar Corp. has a 52-week low of $29.88 and a 52-week high of $42.95. The stock has a market capitalization of $2.36 billion, a PE ratio of 26.33 and a beta of 1.64. The stock has a 50-day moving average of $37.06 and a 200 day moving average of $37.68.
Domtar Corp. (NYSE:UFS) last released its quarterly earnings data on Wednesday, July 27th. The company reported $0.61 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.48. The firm had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.26 billion. Domtar Corp. had a net margin of 1.74% and a return on equity of 6.84%. The firm’s revenue was down 1.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.61 earnings per share. Equities research analysts expect that Domtar Corp. will post $2.93 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 17th. Shareholders of record on Monday, October 3rd will be paid a $0.415 dividend. This represents a $1.66 dividend on an annualized basis and a yield of 4.33%. The ex-dividend date is Thursday, September 29th. Domtar Corp.’s dividend payout ratio (DPR) is presently 116.08%.
Hedge funds have recently bought and sold shares of the stock. Sei Investments Co. boosted its stake in Domtar Corp. by 22.0% in the second quarter. Sei Investments Co. now owns 3,003 shares of the company’s stock worth $105,000 after buying an additional 542 shares during the period. Invictus RG acquired a new stake in Domtar Corp. during the second quarter worth about $118,000. Hussman Strategic Advisors Inc. acquired a new stake in Domtar Corp. during the second quarter worth about $123,000. LS Investment Advisors LLC boosted its stake in Domtar Corp. by 72.9% in the second quarter. LS Investment Advisors LLC now owns 3,785 shares of the company’s stock worth $133,000 after buying an additional 1,596 shares during the period. Finally, IFP Advisors Inc boosted its stake in Domtar Corp. by 1.0% in the first quarter. IFP Advisors Inc now owns 4,774 shares of the company’s stock worth $193,000 after buying an additional 49 shares during the period. Hedge funds and other institutional investors own 84.60% of the company’s stock.
About Domtar Corp.
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 operates through two business segments: Pulp and Paper, and Personal Care. Its Pulp and Paper segment is engaged in the designing, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp.
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