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. However, Domtar's performance will be hurt by rising raw material prices, competitive pressure and unfavorable foreign currency movements.”
A number of other brokerages have also weighed in on UFS. TD Securities boosted their price target on Domtar from $45.00 to $51.00 and gave the stock a hold rating in a research note on Wednesday, February 6th. TheStreet upgraded Domtar from a c rating to a b rating in a research note on Wednesday, February 6th. Royal Bank of Canada lowered Domtar from an outperform rating to a sector perform rating and boosted their price target for the stock from $50.00 to $55.00 in a research note on Wednesday, February 6th. Raymond James restated a market perform rating and set a $52.00 price target on shares of Domtar in a research note on Wednesday, February 6th. Finally, UFS restated a sell rating on shares of Domtar in a research note on Thursday, February 21st. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has given a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $49.25.
UFS opened at $48.97 on Friday. Domtar has a 1 year low of $33.81 and a 1 year high of $54.50. The stock has a market capitalization of $3.12 billion, a price-to-earnings ratio of 10.62, a P/E/G ratio of 1.84 and a beta of 2.01. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.06 and a current ratio of 2.03.
Domtar (NYSE:UFS) (TSE:UFS) last issued its quarterly earnings results on Tuesday, February 5th. The basic materials company reported $1.63 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.62 by $0.01. Domtar had a return on equity of 11.59% and a net margin of 5.19%. The business had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same quarter in the previous year, the firm earned $0.64 earnings per share. The company’s revenue was up 4.1% on a year-over-year basis. Sell-side analysts predict that Domtar will post 5.37 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Monday, April 15th. Investors of record on Tuesday, April 2nd were given a $0.435 dividend. The ex-dividend date of this dividend was Monday, April 1st. This represents a $1.74 dividend on an annualized basis and a yield of 3.55%. Domtar’s dividend payout ratio is currently 37.74%.
In related news, VP Daniel Buron sold 13,591 shares of the company’s stock in a transaction that occurred on Wednesday, February 20th. The stock was sold at an average price of $53.42, for a total value of $726,031.22. Following the sale, the vice president now owns 4,982 shares in the company, valued at $266,138.44. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Michael Dennis Garcia sold 11,272 shares of the company’s stock in a transaction that occurred on Wednesday, February 13th. The shares were sold at an average price of $51.52, for a total value of $580,733.44. The disclosure for this sale can be found here. In the last quarter, insiders sold 148,129 shares of company stock worth $7,765,651. 0.95% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. boosted its position in Domtar by 6.3% in the fourth quarter. BlackRock Inc. now owns 8,167,471 shares of the basic materials company’s stock valued at $286,923,000 after buying an additional 487,215 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Domtar by 4.2% in the third quarter. Vanguard Group Inc. now owns 6,430,521 shares of the basic materials company’s stock valued at $335,480,000 after acquiring an additional 257,488 shares during the period. Vanguard Group Inc lifted its holdings in Domtar by 4.2% in the third quarter. Vanguard Group Inc now owns 6,430,521 shares of the basic materials company’s stock valued at $335,480,000 after acquiring an additional 257,488 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Domtar by 2.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 5,163,540 shares of the basic materials company’s stock valued at $181,395,000 after acquiring an additional 145,552 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in Domtar by 1.3% in the fourth quarter. Bank of New York Mellon Corp now owns 1,360,051 shares of the basic materials company’s stock valued at $47,778,000 after acquiring an additional 17,660 shares during the period. Hedge funds and other institutional investors own 92.96% of the company’s stock.
Domtar Company Profile
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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