Domtar Sees Unusually High Options Volume (NYSE:UFS)

Domtar Corp (NYSE:UFS) (TSE:UFS) was the target of unusually large options trading activity on Thursday. Investors purchased 1,430 call options on the company. This represents an increase of 1,733% compared to the typical daily volume of 78 call options.

Shares of UFS stock traded down $1.33 during mid-day trading on Friday, reaching $31.93. The stock had a trading volume of 682,643 shares, compared to its average volume of 809,547. Domtar has a 12-month low of $31.89 and a 12-month high of $54.50. The company has a market cap of $2.09 billion, a P/E ratio of 6.93 and a beta of 1.89. The business has a 50-day simple moving average of $38.70 and a 200 day simple moving average of $45.24. The company has a current ratio of 2.20, a quick ratio of 1.09 and a debt-to-equity ratio of 0.34.

Domtar (NYSE:UFS) (TSE:UFS) last announced its quarterly earnings results on Thursday, August 1st. The basic materials company reported $0.57 earnings per share for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.30). The firm had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.36 billion. Domtar had a net margin of 5.21% and a return on equity of 12.48%. The company’s quarterly revenue was down 2.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.65 EPS. Research analysts anticipate that Domtar will post 3.65 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Wednesday, October 2nd will be given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 5.70%. The ex-dividend date is Tuesday, October 1st. Domtar’s dividend payout ratio is presently 39.48%.

Institutional investors have recently bought and sold shares of the stock. TD Capital Management LLC purchased a new stake in Domtar in the 2nd quarter valued at about $39,000. Advisory Services Network LLC purchased a new stake in Domtar in the 2nd quarter valued at about $50,000. AGF Investments LLC grew its holdings in Domtar by 75.1% in the 2nd quarter. AGF Investments LLC now owns 1,250 shares of the basic materials company’s stock valued at $56,000 after buying an additional 536 shares during the period. Anderson Fisher LLC purchased a new stake in Domtar in the 2nd quarter valued at about $104,000. Finally, Centaurus Financial Inc. grew its holdings in Domtar by 1,915.4% in the 2nd quarter. Centaurus Financial Inc. now owns 2,479 shares of the basic materials company’s stock valued at $110,000 after buying an additional 2,356 shares during the period. Hedge funds and other institutional investors own 96.80% of the company’s stock.

A number of brokerages have recently issued reports on UFS. ValuEngine lowered shares of Domtar from a “sell” rating to a “strong sell” rating in a research report on Thursday, August 1st. Bank of America raised Domtar from a “neutral” rating to a “buy” rating in a report on Tuesday, April 30th. TheStreet downgraded Domtar from a “b” rating to a “c+” rating in a report on Thursday, August 1st. DA Davidson raised Domtar from a “neutral” rating to a “buy” rating and set a $57.00 price target for the company in a report on Thursday, May 2nd. Finally, Raymond James decreased their price target on Domtar from $48.00 to $45.00 and set a “market perform” rating for the company in a report on Friday, August 2nd. Three research analysts have rated the stock with a sell rating, eight have given a hold rating and four have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $50.31.

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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