Donald Smith & Co., Inc. recently announced the acquisition of new stake in Resolute Forest Products Inc. (NYSE:RFP). The institutional investor has increased its shareholding in the Basic Materials company by 0.14% to 4.81 million shares with purchase of 6820.0 shares. This fresh investment now brings its stake to 5.51% valued currently at $14.58 million. In addition, Acadian Asset Management LLC raised its holdings by 24695.0 to 3.01 million shares. And Aegis Financial Corp. has lifted its position by 29.93% or 0.31 million shares – to 1.35 million shares.
With over 1.16 million Resolute Forest Products Inc. (RFP) shares trading Monday and a closing price of $4.73 on the day, the dollar volume was approximately $5.49 million. The shares have shown a negative weekly performance of -1.66% and its price on 08/31/20 lost nearly -7.25%. Currently, there are 88.10M common shares owned by the public and among those 86.45M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for RFP have a consensus price objective of $4.38. The analysts have set the share’s price value over the next 12 months at a high of $5.50 and a low of $3.25 should the stock experience a downside. Incidentally, analysts’ outlook for the Resolute Forest Products Inc. stock is 3.00 for the next 12 months. The average price target is -7.99% below its last price level and a downside to the estimated low will see the stock lose -45.54% over that period. But an upside of 14.0% will see the stock hit the forecast high price target while mean target price for the stock is $4.38.
Insiders at the company have transacted a total of 80 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 35 of these insider trades were purchases, accounting for 1,027,041 shares. Insider sales of the common stock occurred on 45 occasions, with total insider shares sold totaling 390,890 shares.
The top 3 mutual fund holders in Resolute Forest Products Inc. are Chou Associates Fund, Vanguard Total Stock Market Index, and Aegis Value Fund. Chou Associates Fund owns 3.35 million shares of the company’s stock, all valued at over $10.14 million. Aegis Value Fund bought 0.31 million shares to bring its total holdings to over 1.35 million shares at a value of $4.09 million. Aegis Value Fund now owns shares totaling to 1.55% of the shares outstanding.
Shares of Resolute Forest Products Inc. (NYSE: RFP) opened at $5.05, down -$0.05 from a prior closing price of $5.10. However, the script later closed the day at $4.73, down -7.25%. The company’s stock has a 5-day price change of -1.66% and 127.40% over the past three months. RFP shares are trading 12.62% year to date (YTD), with the 12-month market performance up to 10.51% higher. It has a 12-month low price of $1.14 and touched a high of $5.38 over the same period. Currently, 1.16 million shares have been traded, compared to an average intraday trading volume of 573.24K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 22.54%, 55.85%, and 65.63% respectively.
Institutional ownership of Resolute Forest Products Inc. (NYSE: RFP) shares accounts for 81.70% of the company’s 88.10M shares outstanding. Mutual fund holders own 45.71%, while other institutional holders and individual stakeholders account for 62.90% and 19.18% respectively.
It has a market capitalization of $386.11M and a beta (3y monthly) value of 3.34. The earnings-per-share (ttm) stands at -$1.20. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.36% over the week and 9.72% over the month.
Analysts forecast that Resolute Forest Products Inc. (RFP) will achieve an EPS of $0.46 for the current quarter, $0.01 for the next quarter and $0.48 for 2021. The lowest estimate earnings-per-share for the quarter is $0.18 while analysts give the company a high EPS estimate of $0.73. Comparatively, EPS for the current quarter was -$0.37 a year ago. Earnings per share for the fiscal year are expected to decrease by -120.40%, and 4680.00% over the next financial year. EPS should shrink at an annualized rate of 0.21% over the next five years, compared to 29.40% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Resolute Forest Products Inc. (RFP) as a “Hold” at a consensus score of 3.00. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 2 of the 4 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the RFP, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Outperform rating for the stock in a research note on August 19, 2020, with the firm’s price target at $5.50. Scotiabank coverage for the Resolute Forest Products Inc. (RFP) stock in a research note released on July 31, 2020 offered a Sector Underperform rating with a price target of $3.25. CIBC was of a view on July 31, 2020 that the stock is Neutral, while RBC Capital Mkts gave the stock Sector Perform rating on June 05, 2020, issuing a price target of. RBC Capital Mkts on their part issued Outperform rating on January 31, 2020.