Sappi (OTCMKTS:SPPJY) Shares Down 11.2% - Here's Why

Key Points

• Shares fell 11.2% to $1.03 on Friday, with only about 2,200 shares trading — roughly 63% below the stock's average daily volume.
• In the latest quarter Sappi reported EPS of ($0.03) that matched estimates but revenue of $1.29 billion missed the $1.34 billion consensus, and the company posted a negative net margin (-5.31%) and negative ROE; Zacks recently upgraded Sappi to a Hold and analysts' average rating is Hold.
• The company has a market cap of $604.58 million and a negative PE (-2.17), with modest liquidity (current ratio 1.18, quick ratio 0.55) and debt-to-equity of 0.65, underscoring weak profitability and constrained balance-sheet flexibility.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) shares were down 11.2% on Friday . The stock traded as low as $1.03 and last traded at $1.03. Approximately 2,200 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 5,962 shares. The stock had previously closed at $1.16.

Wall Street Analysts Forecast Growth

Separately, Zacks Research upgraded Sappi from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Sappi has an average rating of "Hold".

Sappi Trading Down 2.9%

The business's 50-day moving average is $1.08 and its two-hundred day moving average is $1.28. The company has a current ratio of 1.18, a quick ratio of 0.55 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $604.58 million, a PE ratio of -2.17 and a beta of 0.69.

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 for the quarter, hitting analysts' consensus estimates of ($0.03). Sappi had a negative net margin of 5.31% and a negative return on equity of 2.34%. The firm had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.34 billion. On average, analysts predict that Sappi Ltd. will post -0.02 earnings per share for the current year.

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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