Sappi (OTCMKTS:SPPJY) Shares Gap Down - What's Next?

Key Points

• Sappi Ltd. experienced a share price gap down from $1.40 to $1.34 prior to trading, with a trading volume of 2,000 shares.
• The company's recent quarterly earnings report showed a loss of ($0.04) EPS, missing the consensus estimate, and revenue of $1.32 billion was below expectations.
• Zacks Research has upgraded Sappi to a "strong sell" rating, contributing to a consensus rating of "Sell" among analysts.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $1.40, but opened at $1.34. Sappi shares last traded at $1.34, with a volume of 2,000 shares changing hands.

Analysts Set New Price Targets

Separately, Zacks Research upgraded Sappi to a "strong sell" rating in a research note on Friday, August 8th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock presently has a consensus rating of "Sell".

Sappi Price Performance

The company has a market capitalization of $755.87 million, a price-to-earnings ratio of 7.94 and a beta of 0.87. 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 company has a 50 day simple moving average of $1.57 and a 200 day simple moving average of $1.77.

Sappi (OTCMKTS:SPPJY - Get Free Report) last announced 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). The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.35 billion. Sappi had a return on equity of 6.12% and a net margin of 1.75%.

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.

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