Klabin (OTCMKTS:KLBAY) Shares Gap Down - Should You Sell?

Key Points

• Klabin SA's shares gapped down from $7.33 to $6.25 before trading on Monday, resulting in a significant decline of 14.7% in share price.
• The company's recent quarterly earnings missed estimates with an EPS of $0.11, while revenue was reported at $828.57 million compared to expectations of $4.80 billion.
• Klabin announced a dividend payment of $0.0126 per share, with a dividend yield of 4.78%, and a payout ratio of 62.75%.

Klabin SA (OTCMKTS:KLBAY - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $7.33, but opened at $6.25. Klabin shares last traded at $6.25, with a volume of 110 shares trading hands.

Analysts Set New Price Targets

Separately, UBS Group raised shares of Klabin to a "hold" rating in a research note on Thursday, April 10th.

Klabin Trading Down 2.5%

The company has a quick ratio of 1.44, a current ratio of 1.96 and a debt-to-equity ratio of 3.06. The business's 50 day moving average is $6.87 and its 200-day moving average is $6.86. The firm has a market cap of $22.09 billion, a P/E ratio of 14.02, a price-to-earnings-growth ratio of 0.55 and a beta of 1.02.

Klabin (OTCMKTS:KLBAY - Get Free Report) last posted its quarterly earnings data on Wednesday, May 7th. The basic materials company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.21). Klabin had a return on equity of 16.26% and a net margin of 8.66%. The company had revenue of $828.57 million during the quarter, compared to analyst estimates of $4.80 billion. As a group, analysts forecast that Klabin SA will post 0.02 earnings per share for the current fiscal year.

Klabin Cuts Dividend

The company also recently announced a dividend, which was paid on Monday, June 2nd. Investors of record on Tuesday, May 20th were given a $0.0126 dividend. This represents a yield of 478.0%. The ex-dividend date of this dividend was Monday, May 19th. Klabin's dividend payout ratio (DPR) is 62.75%.

About Klabin

Klabin SA, together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper.