Klabin (OTCMKTS:KLBAY) Shares Gap Down - Time to Sell?

Key Points

• Klabin SA's stock price gapped down from $7.19 to $6.90 prior to Monday's market opening, with recent trading volume reported at 210 shares.
• Jefferies Financial Group upgraded Klabin to a "strong-buy" rating, while the overall consensus rating remains a "Moderate Buy."
• The company announced a significant dividend increase to $0.0911, yielding 490.0%, with a payout ratio currently at 60.00%.

Klabin SA (OTCMKTS:KLBAY - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $7.19, but opened at $6.90. Klabin shares last traded at $6.90, with a volume of 210 shares changing hands.

Wall Street Analyst Weigh In

Separately, Jefferies Financial Group upgraded Klabin to a "strong-buy" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy".

Klabin Trading Down 4.0%

The company has a fifty day moving average of $7.02 and a two-hundred day moving average of $6.78. The company has a current ratio of 2.11, a quick ratio of 1.59 and a debt-to-equity ratio of 2.56. The stock has a market capitalization of $21.32 billion, a price-to-earnings ratio of 11.50, a price-to-earnings-growth ratio of 0.55 and a beta of 0.93.

Klabin (OTCMKTS:KLBAY - Get Free Report) last posted its earnings results on Tuesday, August 5th. The basic materials company reported $0.17 earnings per share 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 firm had revenue of $913.44 million during the quarter, compared to analyst estimates of $5.48 billion. On average, research analysts expect that Klabin SA will post 0.02 EPS for the current year.

Klabin Increases Dividend

The business also recently announced a dividend, which was paid on Friday, August 29th. Investors of record on Monday, August 18th were issued a $0.0911 dividend. This is an increase from Klabin's previous dividend of $0.01. The ex-dividend date was Friday, August 15th. This represents a yield of 490.0%. Klabin's dividend payout ratio is presently 60.00%.

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.

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