Domtar Corporation (UFS) Upgraded to Strong-Buy by Zacks Investment Research
Domtar Corporation (NYSE:UFS) (TSE:UFS) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Thursday. The brokerage presently has a $51.00 target price on the basic materials company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 19.13% from the company’s current price.
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.”
Several other research analysts have also commented on UFS. ValuEngine upgraded shares of Domtar Corporation from a “hold” rating to a “buy” rating in a research note on Friday, September 8th. KeyCorp began coverage on shares of Domtar Corporation in a research note on Thursday, July 6th. They set an “underweight” rating and a $33.00 price target on the stock. Vertical Research restated a “buy” rating on shares of Domtar Corporation in a research note on Friday, July 28th. BidaskClub lowered shares of Domtar Corporation from a “hold” rating to a “sell” rating in a research note on Thursday, July 27th. Finally, Scotiabank dropped their price target on shares of Domtar Corporation from $40.50 to $40.00 and set a “sector perform” rating on the stock in a research note on Monday, July 31st. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of “Hold” and an average price target of $42.25.
Shares of Domtar Corporation (UFS) traded down 3.78% during trading on Thursday, hitting $42.81. 1,210,382 shares of the company’s stock were exchanged. Domtar Corporation has a 1-year low of $33.99 and a 1-year high of $44.72. The stock’s 50 day moving average is $41.55 and its 200 day moving average is $38.73. The firm has a market capitalization of $2.68 billion, a PE ratio of 16.33 and a beta of 1.49.
Domtar Corporation (NYSE:UFS) (TSE:UFS) last released its quarterly earnings data on Friday, July 28th. The basic materials company reported $0.61 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.53 by $0.08. The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.31 billion. Domtar Corporation had a net margin of 3.23% and a return on equity of 6.47%. The company’s revenue for the quarter was down 3.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.61 EPS. On average, equities research analysts forecast that Domtar Corporation will post $2.52 earnings per share for the current year.
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In related news, VP Daniel Buron sold 4,900 shares of the company’s stock in a transaction on 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 sale, the vice president now directly owns 15,126 shares of the company’s stock, valued at approximately $606,552.60. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Michael Dennis Garcia sold 4,712 shares of the company’s stock in a transaction on Tuesday, September 19th. The stock was sold at an average price of $42.73, for a total transaction of $201,343.76. Following the sale, the insider now directly owns 4,712 shares of the company’s stock, valued at $201,343.76. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 13,766 shares of company stock valued at $569,809. 1.04% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. boosted its holdings in shares of Domtar Corporation by 1.0% during the 2nd quarter. BlackRock Inc. now owns 10,480,620 shares of the basic materials company’s stock worth $402,666,000 after buying an additional 103,558 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Domtar Corporation by 1.0% during the 2nd quarter. Vanguard Group Inc. now owns 5,342,007 shares of the basic materials company’s stock worth $205,240,000 after buying an additional 53,417 shares during the period. QV Investors Inc. bought a new stake in shares of Domtar Corporation during the 2nd quarter worth $219,260,000. Fairpointe Capital LLC boosted its holdings in shares of Domtar Corporation by 5.6% during the 2nd quarter. Fairpointe Capital LLC now owns 3,870,164 shares of the basic materials company’s stock worth $148,692,000 after buying an additional 205,810 shares during the period. Finally, State Street Corp boosted its holdings in shares of Domtar Corporation by 0.5% during the 2nd quarter. State Street Corp now owns 1,772,703 shares of the basic materials company’s stock worth $68,104,000 after buying an additional 8,827 shares during the period. 91.25% of the stock is owned by institutional investors and hedge funds.
About Domtar Corporation
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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