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

Key Points

• Sappi shares gapped down at the open from $1.16 to $1.03 and were trading with very low volume (203 shares) at the time of the report.
• Zacks Research revised its rating from a "strong sell" to a "hold", and MarketBeat shows a current consensus rating of Hold.
• Fundamentals remain weak: Sappi reported EPS of ($0.03) (matching estimates), has a negative net margin (-5.31%) and negative PE (-2.24), and posted revenue slightly below expectations.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $1.16, but opened at $1.03. Sappi shares last traded at $1.03, with a volume of 203 shares changing hands.

Analyst Ratings Changes

Separately, Zacks Research upgraded shares of Sappi from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. One analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of "Hold".

Sappi Price Performance

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 company has a market capitalization of $622.72 million, a PE ratio of -2.24 and a beta of 0.69. The stock's 50-day moving average is $1.09 and its two-hundred day moving average is $1.28.

Sappi (OTCMKTS:SPPJY - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.34 billion. On average, equities analysts predict that Sappi Ltd. will post -0.02 EPS for the current year.

Sappi Company Profile

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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