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 research analysts have also weighed in on the stock. TD Securities raised their target price on shares of Domtar from $45.00 to $51.00 and gave the company a hold rating in a report on Wednesday, February 6th. Royal Bank of Canada lowered shares of Domtar from an outperform rating to a sector perform rating and raised their target price for the company from $50.00 to $55.00 in a report on Wednesday, February 6th. ValuEngine raised shares of Domtar from a strong sell rating to a sell rating in a report on Thursday, January 10th. Citigroup cut their target price on shares of Domtar from $52.00 to $38.00 and set a neutral rating for the company in a report on Monday, January 7th. Finally, Raymond James reissued a market perform rating and issued a $52.00 target price on shares of Domtar in a report on Wednesday, February 6th. Two analysts have rated the stock with a sell rating, twelve have given a hold rating and one has assigned a buy rating to the stock. Domtar currently has a consensus rating of Hold and an average target price of $49.25.
Domtar (NYSE:UFS) (TSE:UFS) last posted its earnings results on Tuesday, February 5th. The basic materials company reported $1.63 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.01. Domtar had a net margin of 5.19% and a return on equity of 11.59%. The firm had revenue of $1.39 billion during the quarter, compared to analyst estimates of $1.44 billion. During the same period last year, the firm posted $0.64 earnings per share. Domtar’s revenue for the quarter was up 4.1% compared to the same quarter last year. Analysts predict that Domtar will post 5.37 earnings per share for the current year.
The business also recently declared 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 presently 37.74%.
In related news, insider Michael Fagan sold 11,834 shares of the firm’s stock in a transaction on Thursday, February 28th. The stock was sold at an average price of $51.13, for a total value of $605,072.42. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Daniel Buron sold 13,591 shares of the firm’s stock in a transaction 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 completion of the sale, the vice president now owns 4,982 shares of the company’s stock, valued at $266,138.44. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 148,129 shares of company stock valued at $7,765,651. 0.95% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Retirement Systems of Alabama lifted its position in shares of Domtar by 0.3% during the fourth quarter. Retirement Systems of Alabama now owns 81,556 shares of the basic materials company’s stock worth $2,865,000 after purchasing an additional 277 shares during the last quarter. American International Group Inc. lifted its position in shares of Domtar by 0.3% during the fourth quarter. American International Group Inc. now owns 128,203 shares of the basic materials company’s stock worth $4,504,000 after purchasing an additional 359 shares during the last quarter. Arizona State Retirement System lifted its position in shares of Domtar by 1.1% during the fourth quarter. Arizona State Retirement System now owns 45,147 shares of the basic materials company’s stock worth $1,586,000 after purchasing an additional 488 shares during the last quarter. Oregon Public Employees Retirement Fund lifted its position in shares of Domtar by 2.0% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 24,991 shares of the basic materials company’s stock worth $878,000 after purchasing an additional 492 shares during the last quarter. Finally, Comerica Bank lifted its position in shares of Domtar by 1.6% during the fourth quarter. Comerica Bank now owns 41,750 shares of the basic materials company’s stock worth $1,918,000 after purchasing an additional 658 shares during the last quarter. Institutional investors own 92.96% of the company’s stock.
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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