Domtar Target of Unusually Large Options Trading (NYSE:UFS)

Domtar Corp (NYSE:UFS) (TSE:UFS) saw some unusual options trading activity on Monday. Investors purchased 10,440 put options on the stock. This is an increase of approximately 1,617% compared to the typical volume of 608 put options.

Large investors have recently added to or reduced their stakes in the stock. State Street Corp boosted its position in Domtar by 32.3% during the first quarter. State Street Corp now owns 2,003,696 shares of the basic materials company’s stock valued at $43,360,000 after purchasing an additional 489,496 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Domtar by 33.1% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,338,432 shares of the basic materials company’s stock valued at $51,181,000 after buying an additional 332,526 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Domtar by 0.3% in the first quarter. Bank of New York Mellon Corp now owns 1,199,811 shares of the basic materials company’s stock valued at $25,965,000 after buying an additional 4,083 shares in the last quarter. Donald Smith & CO. Inc. acquired a new position in Domtar during the first quarter worth $20,497,000. Finally, Norges Bank acquired a new position in Domtar during the fourth quarter worth $33,375,000. 91.38% of the stock is currently owned by institutional investors and hedge funds.

Shares of UFS opened at $21.11 on Wednesday. The company has a quick ratio of 1.08, a current ratio of 2.06 and a debt-to-equity ratio of 0.54. Domtar has a twelve month low of $18.40 and a twelve month high of $44.67. The stock has a market capitalization of $1.09 billion, a P/E ratio of 211.10 and a beta of 1.71. The company has a 50 day moving average of $21.42 and a 200-day moving average of $28.18.

Domtar (NYSE:UFS) (TSE:UFS) last released its earnings results on Friday, May 8th. The basic materials company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.35. Domtar had a net margin of 0.18% and a return on equity of 4.08%. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. During the same quarter last year, the firm earned $1.44 earnings per share. The firm’s revenue for the quarter was down 7.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Domtar will post -0.43 earnings per share for the current fiscal year.

UFS has been the topic of several research analyst reports. Zacks Investment Research downgraded Domtar from a “buy” rating to a “hold” rating and set a $22.00 price objective on the stock. in a research note on Thursday, June 25th. BMO Capital Markets upgraded Domtar from a “market perform” rating to an “outperform” rating and cut their price objective for the company from $36.00 to $30.00 in a report on Thursday, March 12th. TD Securities boosted their price objective on Domtar from $22.00 to $26.00 and gave the company a “hold” rating in a research report on Monday, May 11th. Bank of America downgraded shares of Domtar from a “buy” rating to an “underperform” rating and set a $22.00 target price on the stock. in a report on Monday, March 16th. Finally, ValuEngine lowered shares of Domtar from a “buy” rating to a “hold” rating in a research note on Monday, March 23rd. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and two have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $27.70.

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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