Sappi (OTCMKTS:SPPJY) Shares Down 8.3% - Here's Why

Key Points

• Sappi Ltd. shares dropped 8.3% during trading, closing at $1.55, with increased trading volume.
• The company reported a loss of $0.04 earnings per share, missing expectations by $0.07, and revenues also fell short of forecasts at $1.32 billion.
• Sappi has a market capitalization of $951.83 million and a PE ratio of 10.00, indicating some concerns about its financial performance.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) dropped 8.3% during mid-day trading on Wednesday . The stock traded as low as $1.55 and last traded at $1.55. Approximately 6,095 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 5,840 shares. The stock had previously closed at $1.69.

Analysts Set New Price Targets

Separately, Zacks Research upgraded shares of Sappi to a "strong sell" rating in a report on Friday, August 8th.

Sappi Trading Up 3.1%

The company has a 50 day moving average of $1.75 and a 200 day moving average of $2.01. The firm has a market cap of $923.84 million, a P/E ratio of 9.71 and a beta of 0.76. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.68 and a current ratio of 1.38.

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 (EPS) for the quarter, missing analysts' consensus estimates of $0.03 by ($0.07). The firm had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.35 billion. Sappi had a net margin of 1.75% and a return on equity of 6.09%.

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.