Sappi (OTCMKTS:SPPJY) Shares Gap Down - Time to Sell?

Key Points

• Sappi Ltd. shares opened at $1.40 after closing at $1.56, reflecting a significant gap down in pricing before trading commenced on Monday.
• Zacks Research has downgraded Sappi to a "strong sell" rating, contributing to an overall average stock rating of "Sell" according to MarketBeat.
• The company reported earnings of ($0.04) per share for the last quarter, falling short of the consensus estimate of $0.03 and recording revenue of $1.32 billion against an expected $1.35 billion.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $1.56, but opened at $1.40. Sappi shares last traded at $1.40, with a volume of 5,123 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, Zacks Research raised Sappi to a "strong sell" rating in a report on Friday, August 8th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, Sappi has an average rating of "Sell".

Sappi Price Performance

The company has a quick ratio of 0.62, a current ratio of 1.24 and a debt-to-equity ratio of 0.63. The stock has a market capitalization of $803.74 million, a PE ratio of 8.44 and a beta of 0.83. The company has a 50-day moving average of $1.66 and a 200 day moving average of $1.86.

Sappi (OTCMKTS:SPPJY - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The basic materials company reported ($0.04) EPS 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 firm had revenue of $1.32 billion for the quarter, compared to analysts' expectations 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.