Sappi (OTCMKTS:SPPJY) Shares Down 11% - Should You Sell?

Key Points

• Sappi Ltd. shares fell 11% in a single trading session, closing at $1.53, with trading volume dropping by 91% compared to its average daily volume.
• Analysts have downgraded Sappi to a "strong sell" rating, contributing to a consensus rating of "Sell" for the stock.
• The company reported a earnings per share loss of ($0.04) for the last quarter, which was below the consensus estimate of $0.03, alongside a revenue of $1.32 billion, missing expectations of $1.35 billion.

Shares of Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) dropped 11% during trading on Monday . The stock traded as low as $1.53 and last traded at $1.53. Approximately 500 shares traded hands during trading, a decline of 91% from the average daily volume of 5,426 shares. The stock had previously closed at $1.72.

Analyst Upgrades and Downgrades

Separately, Zacks Research upgraded shares of Sappi to a "strong sell" rating in a research report on Friday, August 8th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Sappi currently has a consensus rating of "Sell".

Sappi Stock Performance

The company has a market capitalization of $907.04 million, a P/E ratio of 9.53 and a beta of 0.83. The business has a 50-day moving average of $1.68 and a 200-day moving average of $1.90. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.24 and a quick ratio of 0.62.

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

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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