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

Key Points

• Sappi shares gapped down 5.6% — the stock opened at $0.9439 after closing at $1.05 and last traded at $0.9439 on light volume (~2,000 shares).
• Company remains unprofitable — Sappi reported Q earnings of ($0.03) (in line with estimates), revenue slightly missed, and the business shows a negative net margin (−5.31%), negative ROE (−2.34%) and a negative PE; analysts forecast −0.11 EPS for the year.
• Analyst stance shifted to "Hold" — Zacks upgraded Sappi from "strong sell" to "hold," the consensus rating is Hold, and the company has a market cap of about $570.7 million.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $1.05, but opened at $0.9439. Sappi shares last traded at $0.9439, with a volume of 2,000 shares.

Analysts Set New Price Targets

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

Sappi Trading Down 5.6%

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 stock has a market capitalization of $570.66 million, a PE ratio of -2.05 and a beta of 0.69. The business's 50-day moving average is $1.08 and its two-hundred day moving average is $1.28.

Sappi (OTCMKTS:SPPJY - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The basic materials company reported ($0.03) EPS for the quarter, hitting analysts' consensus estimates of ($0.03). The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.34 billion. Sappi had a negative net margin of 5.31% and a negative return on equity of 2.34%. As a group, equities research analysts anticipate that Sappi Ltd. will post -0.11 earnings per share 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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