Domtar (UFS) Lifted to Buy at Bank of America

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Bank of America upgraded shares of Domtar (NYSE:UFS) (TSE:UFS) from a neutral rating to a buy rating in a research note released on Tuesday, BenzingaRatingsTable reports.

Other research analysts also recently issued research reports about the company. TheStreet upgraded Domtar from a c rating to a b rating in a research note on Wednesday, February 6th. Zacks Investment Research upgraded Domtar from a hold rating to a buy rating and set a $56.00 price target on the stock in a research note on Friday, April 12th. TD Securities raised 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. 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, Citigroup decreased their price objective on Domtar from $52.00 to $38.00 and set a neutral rating for the company in a research report on Monday, January 7th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the company. The company has a consensus rating of Hold and a consensus price target of $52.25.

NYSE:UFS traded up $1.42 during mid-day trading on Tuesday, reaching $46.55. 314,119 shares of the stock were exchanged, compared to its average volume of 742,812. The company has a market capitalization of $3.09 billion, a PE ratio of 10.10, a P/E/G ratio of 1.82 and a beta of 1.97. The company has a quick ratio of 1.06, a current ratio of 2.03 and a debt-to-equity ratio of 0.34. Domtar has a 1 year low of $33.81 and a 1 year high of $54.50.

Domtar (NYSE:UFS) (TSE:UFS) last released its quarterly earnings results on Wednesday, May 1st. The basic materials company reported $1.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.36 by $0.08. The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.44 billion. Domtar had a return on equity of 11.59% and a net margin of 5.19%. The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.87 EPS. As a group, sell-side analysts anticipate that Domtar will post 5.37 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Shareholders of record on Tuesday, April 2nd were given a dividend of $0.435 per share. The ex-dividend date was Monday, April 1st. This represents a $1.74 dividend on an annualized basis and a yield of 3.74%. Domtar’s payout ratio is 37.74%.

In other Domtar news, CEO John David Williams sold 50,779 shares of the stock in a transaction that occurred on Friday, February 22nd. The stock was sold at an average price of $52.73, for a total transaction of $2,677,576.67. Following the completion of the sale, the chief executive officer now directly owns 16,373 shares of the company’s stock, valued at approximately $863,348.29. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Daniel Buron sold 13,591 shares of the 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 directly owns 4,982 shares of the company’s stock, valued at $266,138.44. The disclosure for this sale can be found here. Insiders have sold a total of 148,129 shares of company stock valued at $7,765,651 over the last ninety days. 0.95% of the stock is owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the company. Oregon Public Employees Retirement Fund lifted its holdings in shares of Domtar by 3,483.6% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 877,934 shares of the basic materials company’s stock valued at $25,000 after buying an additional 853,435 shares during the period. Winslow Evans & Crocker Inc. acquired a new stake in shares of Domtar in the 4th quarter valued at approximately $26,000. Stevens First Principles Investment Advisors acquired a new stake in shares of Domtar in the 4th quarter valued at approximately $31,000. Enlightenment Research LLC acquired a new stake in shares of Domtar in the 4th quarter valued at approximately $77,000. Finally, IFP Advisors Inc lifted its holdings in shares of Domtar by 144.8% in the 4th quarter. IFP Advisors Inc now owns 2,269 shares of the basic materials company’s stock valued at $79,000 after buying an additional 1,342 shares during the period. 92.82% of the stock is owned by institutional investors and hedge funds.

About Domtar

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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