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

Key Points

• Share price hit a new 52-week low — Sappi fell to $0.90 on Monday with just 200 shares traded, down from a prior close of $1.0450, indicating very low liquidity at the new low.
• Zacks downgraded Sappi to a "strong sell", and the stock carries an average analyst rating of "Sell."
• Negative profitability and revenue miss — Sappi reported EPS of ($0.03) (in line), revenue of $1.29 billion versus $1.34 billion expected, a negative net margin of 5.31% and negative ROE, with a market cap of $544.12 million and the share price trading below both its 50- and 200-day moving averages.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report)'s share price hit a new 52-week low on Monday . The company traded as low as $0.90 and last traded at $0.90, with a volume of 200 shares traded. The stock had previously closed at $1.0450.

Analyst Upgrades and Downgrades

Separately, Zacks Research downgraded shares of Sappi from a "hold" rating to a "strong sell" rating in a research report on Tuesday, February 3rd. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock currently has an average rating of "Sell".

Sappi Stock Performance

The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.55 and a current ratio of 1.18. The firm has a market cap of $544.12 million, a P/E ratio of -1.96 and a beta of 0.67. The company's 50 day moving average is $1.17 and its 200 day moving average is $1.33.

Sappi (OTCMKTS:SPPJY - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The basic materials company reported ($0.03) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.03). Sappi had a negative net margin of 5.31% and a negative return on equity of 2.34%. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.34 billion.

About Sappi

Sappi Limited, trading on the OTCMKTS as SPPJY, is a global pulp and paper company headquartered in Johannesburg, South Africa. Originally established in 1936 as South African Pulp and Paper Industries, Sappi has grown into a diversified manufacturer of dissolving wood pulp, graphic papers, packaging and specialty papers. The company serves customers in over 150 countries and operates a network of mills and sales offices across three key regions: Europe, North America and South Africa.

Sappi’s product portfolio is organized into several main categories.

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