Domtar (UFS) Raised to Buy at Goldman Sachs Group

Goldman Sachs Group upgraded shares of Domtar (NYSE:UFS) (TSE:UFS) from a neutral rating to a buy rating in a research report report published on Friday morning, BenzingaRatingsTable reports. They currently have $56.00 price objective on the basic materials company’s stock, up from their previous price objective of $51.00.

A number of other research analysts have also issued reports on the company. TD Securities boosted their target price on 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 Domtar from an outperform rating to a sector perform rating and upped their price objective for the stock from $50.00 to $55.00 in a report on Wednesday, February 6th. ValuEngine raised Domtar from a strong sell rating to a sell rating in a report on Thursday, January 10th. DA Davidson raised Domtar from a neutral rating to a buy rating and set a $57.00 price objective on the stock in a report on Thursday, May 2nd. Finally, Raymond James reaffirmed a market perform rating and set a $52.00 price objective on shares of Domtar in a report on Wednesday, February 6th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $52.25.

NYSE:UFS opened at $47.14 on Friday. The company has a market capitalization of $2.97 billion, a PE ratio of 10.23, a P/E/G ratio of 1.77 and a beta of 1.96. The company has a current ratio of 2.19, a quick ratio of 1.06 and a debt-to-equity ratio of 0.33. Domtar has a 12-month low of $33.81 and a 12-month high of $54.50.

Domtar (NYSE:UFS) (TSE:UFS) last released its earnings results on Wednesday, May 1st. The basic materials company reported $1.44 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.36 by $0.08. The business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.44 billion. Domtar had a return on equity of 12.88% and a net margin of 5.63%. The company’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.87 earnings per share. Equities analysts predict that Domtar will post 5.3 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Investors of record on Tuesday, April 2nd were issued a dividend of $0.435 per share. This represents a $1.74 dividend on an annualized basis and a yield of 3.69%. The ex-dividend date of this dividend was Monday, April 1st. Domtar’s dividend payout ratio is presently 37.74%.

In related news, CEO John David Williams sold 50,779 shares of the company’s stock in a transaction 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 transaction, the chief executive officer now owns 16,373 shares of the company’s stock, valued at $863,348.29. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Daniel Buron sold 13,591 shares of the company’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 transaction, the vice president now directly owns 4,982 shares in the company, valued at approximately $266,138.44. The disclosure for this sale can be found here. Insiders have sold 148,129 shares of company stock worth $7,765,651 in the last ninety days. 0.95% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of UFS. Bank of New York Mellon Corp grew its holdings in Domtar by 5.3% in the third quarter. Bank of New York Mellon Corp now owns 1,342,391 shares of the basic materials company’s stock valued at $70,032,000 after purchasing an additional 68,112 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in Domtar by 12.9% in the third quarter. JPMorgan Chase & Co. now owns 696,237 shares of the basic materials company’s stock valued at $36,322,000 after purchasing an additional 79,533 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in Domtar by 4.2% in the third quarter. The Manufacturers Life Insurance Company now owns 102,749 shares of the basic materials company’s stock valued at $5,360,000 after purchasing an additional 4,172 shares during the last quarter. AQR Capital Management LLC grew its holdings in Domtar by 42.4% in the third quarter. AQR Capital Management LLC now owns 22,708 shares of the basic materials company’s stock valued at $1,184,000 after purchasing an additional 6,760 shares during the last quarter. Finally, Legal & General Group Plc grew its holdings in Domtar by 4.7% in the third quarter. Legal & General Group Plc now owns 118,238 shares of the basic materials company’s stock valued at $6,168,000 after purchasing an additional 5,306 shares during the last quarter. 92.82% of the stock is currently owned by institutional investors.

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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Analyst Recommendations for Domtar (NYSE:UFS)

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