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

Key Points

• Klabin SA's shares opened at $6.50 after closing at $7.01, marking a significant gap down prior to trading.
• The company recently announced a dividend of $0.0911 per share, yielding 490.0%, which is a notable increase from the previous dividend of $0.01.
• Klabin's quarterly earnings report indicated an EPS of $0.17, surpassing analysts' estimates, with revenue reported at $913.44 million against expectations of $5.48 billion.

Klabin SA (OTCMKTS:KLBAY - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $7.01, but opened at $6.50. Klabin shares last traded at $6.50, with a volume of 248 shares.

Klabin Stock Performance

The company has a debt-to-equity ratio of 2.56, a quick ratio of 1.59 and a current ratio of 2.11. The firm has a market cap of $22.40 billion, a P/E ratio of 12.08, a P/E/G ratio of 0.55 and a beta of 0.93. The firm has a 50 day simple moving average of $7.03 and a 200 day simple moving average of $6.79.

Klabin (OTCMKTS:KLBAY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The basic materials company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01. Klabin had a return on equity of 18.24% and a net margin of 9.90%.The company had revenue of $913.44 million for the quarter, compared to analysts' expectations of $5.48 billion. On average, equities research analysts predict that Klabin SA will post 0.02 EPS for the current fiscal year.

Klabin Increases Dividend

The business also recently announced a dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, August 18th were issued a dividend of $0.0911 per share. The ex-dividend date was Friday, August 15th. This represents a dividend yield of 490.0%. This is an increase from Klabin's previous dividend of $0.01. Klabin's payout ratio is presently 61.67%.

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.