Sappi (OTCMKTS:SPPJY) Hits New 12-Month Low - Should You Sell?

Key Points

• Sappi Ltd. reached a new 12-month low of $1.32 before closing at $1.44, indicating significant downward pressure on the stock.
• Analysts have a consensus rating of "Sell" on Sappi, with Zacks Research specifically upgrading its rating to "strong sell".
• The company's latest earnings report showed a miss on EPS, reporting (-$0.04) compared to estimates of $0.03, alongside revenues of $1.32 billion against an expected $1.35 billion.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) reached a new 52-week low during trading on Friday . The stock traded as low as $1.32 and last traded at $1.44, with a volume of 489 shares. The stock had previously closed at $1.49.

Analysts Set New Price Targets

Separately, Zacks Research raised Sappi to a "strong sell" rating in a research note on Friday, August 8th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company has a consensus rating of "Sell".

Sappi Stock Down 3.7%

The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.62 and a current ratio of 1.24. The stock's 50 day simple moving average is $1.61 and its 200 day simple moving average is $1.81. The firm has a market cap of $803.46 million, a P/E ratio of 8.44 and a beta of 0.87.

Sappi (OTCMKTS:SPPJY - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The basic materials company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.03 by ($0.07). The business had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.35 billion. Sappi had a net margin of 1.75% and a return on equity of 6.12%.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers.

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