Sappi (OTCMKTS:SPPJY) Shares Gap Up - Still a Buy?

Key Points

• Sappi Ltd. shares jumped from a closing price of $1.39 to $1.45 prior to trading, indicating market interest despite recent analyst downgrades.
• The company reported a loss of ($0.04) earnings per share in its latest quarter, missing estimates and showcasing challenges in achieving revenue targets.
• Despite a market capitalization of $839.85 million and a P/E ratio of 8.82, Sappi currently holds an average rating of "Sell" from analysts.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $1.39, but opened at $1.45. Sappi shares last traded at $1.45, with a volume of 250 shares trading hands.

Analyst Upgrades and Downgrades

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

Sappi Trading Up 8.2%

The firm's 50-day simple moving average is $1.66 and its 200 day simple moving average is $1.86. The stock has a market capitalization of $839.85 million, a P/E ratio of 8.82 and a beta of 0.83. The company has a quick ratio of 0.62, a current ratio of 1.24 and a debt-to-equity ratio of 0.63.

Sappi (OTCMKTS:SPPJY - Get Free Report) last posted its earnings results on Thursday, August 7th. The basic materials company reported ($0.04) earnings per share 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 company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.35 billion.

Sappi Company Profile

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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