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

Key Points

• Sappi shares gapped down from $1.06 to an open of $1.00 and were last trading at $1.00, down about 5.7% with roughly 2,000 shares changing hands.
• Zacks Research cut Sappi to a “strong sell”, and the stock carries an average analyst rating of Sell.
• Quarterly results showed EPS of ($0.03) that met estimates but revenue missed ($1.29B vs. $1.34B); the company has negative profitability (net margin -5.31%, ROE -2.34%) and a negative P/E (-2.17).

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $1.06, but opened at $1.00. Sappi shares last traded at $1.00, with a volume of 2,000 shares trading hands.

Wall Street Analyst Weigh In

Separately, Zacks Research cut Sappi from a "hold" rating to a "strong sell" rating in a research report on Tuesday, February 3rd. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company presently has an average rating of "Sell".

Sappi Trading Down 5.7%

The business's 50 day simple moving average is $1.16 and its 200 day simple moving average is $1.33. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.18 and a quick ratio of 0.55. The company has a market capitalization of $604.58 million, a price-to-earnings ratio of -2.17 and a beta of 0.67.

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

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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