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

Key Points

• Klabin shares gapped down, opening at $7.02 from the prior close of $7.4350 and last trading at $7.00, leaving the stock below its 50-day ($7.57) and 200-day ($7.16) moving averages.
• Itau BBA lowered Klabin to a market perform, while the analyst consensus remains mixed (one Strong Buy, two Holds) with an average rating of Moderate Buy.
• In the latest quarter Klabin beat EPS estimates ($0.13 vs. $0.08) but missed revenue expectations; the company shows decent liquidity (current ratio 2.06) but relatively high leverage (debt/equity 2.43) and trades at a P/E of 13.56 with a PEG of 0.54.

Klabin SA (OTCMKTS:KLBAY - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $7.4350, but opened at $7.02. Klabin shares last traded at $7.00, with a volume of 13,089 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Itau BBA Securities lowered Klabin to a "market perform" rating in a research report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy".

Klabin Stock Performance

The company has a current ratio of 2.06, a quick ratio of 1.64 and a debt-to-equity ratio of 2.43. The company has a 50-day moving average of $7.57 and a 200-day moving average of $7.16. The firm has a market capitalization of $21.85 billion, a price-to-earnings ratio of 13.56, a price-to-earnings-growth ratio of 0.54 and a beta of 0.81.

Klabin (OTCMKTS:KLBAY - Get Free Report) last issued its earnings results on Wednesday, February 11th. The basic materials company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.05. Klabin had a return on equity of 11.06% and a net margin of 7.13%.The firm had revenue of $956.36 million for the quarter, compared to analyst estimates of $972.70 million. On average, equities research analysts forecast that Klabin SA will post 0.02 earnings per share for the current fiscal year.

About Klabin

Klabin SA is a Brazilian integrated paper and pulp company that develops, manufactures and sells a range of forest products and packaging solutions. Founded by the Klabin family in 1899 and headquartered in São Paulo, the company's activities span forestry management, pulp and paper manufacturing, containerboard and corrugated packaging production, and recycling operations. Klabin supplies both industrial and consumer-oriented paper and packaging products, including kraftliner, corrugating medium, cartonboard and specialty papers used across multiple end markets.

As an integrated forest products company, Klabin manages planted timberlands and brings raw material through its own supply chain into pulping and papermaking facilities.

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