Klabin (OTCMKTS:KLBAY) Trading Down 7.7% - What's Next?

Key Points

• Klabin SA's shares fell by 7.7% on Friday, trading at $7.11, with a significant drop in volume to approximately 801 shares, down 79% from the average daily volume.
• The recent quarterly earnings report showed Klabin exceeded expected earnings per share (EPS) at $0.17, compared to the consensus estimate of $0.16, but revenue was significantly lower than anticipated at $913.44 million.
• UBS Group has assigned a "hold" rating to Klabin's shares, and the company recently declared a dividend with a yield of 478.0%, despite a dividend payout ratio of 53.33%.

Shares of Klabin SA (OTCMKTS:KLBAY - Get Free Report) dropped 7.7% during mid-day trading on Friday . The company traded as low as $7.11 and last traded at $7.11. Approximately 801 shares were traded during trading, a decline of 79% from the average daily volume of 3,790 shares. The stock had previously closed at $7.70.

Wall Street Analyst Weigh In

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

Klabin Stock Performance

The firm's fifty day moving average is $6.92 and its 200 day moving average is $6.87. The company has a market cap of $21.97 billion, a PE ratio of 11.85, a price-to-earnings-growth ratio of 0.55 and a beta of 1.03. The company has a current ratio of 1.96, a quick ratio of 1.44 and a debt-to-equity ratio of 3.06.

Klabin (OTCMKTS:KLBAY - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The basic materials company reported $0.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. The company had revenue of $913.44 million during the quarter, compared to the consensus estimate of $5.48 billion. Klabin had a net margin of 9.90% and a return on equity of 19.37%. As a group, research analysts predict that Klabin SA will post 0.02 EPS for the current fiscal year.

Klabin Cuts Dividend

The firm also recently announced a dividend, which was paid on Monday, June 2nd. Stockholders of record on Tuesday, May 20th were paid a $0.0126 dividend. This represents a dividend yield of 478.0%. The ex-dividend date of this dividend was Monday, May 19th. Klabin's dividend payout ratio (DPR) is currently 53.33%.

Klabin Company Profile

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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