Citigroup Has Lowered Expectations for International Paper (NYSE:IP) Stock Price

Key Points

• Citigroup lowered International Paper’s price target from $47 to $41 while maintaining a “buy” rating, implying approximately 12.6% upside from the stock’s $36.40 price.
• Analyst sentiment remains generally positive: 10 analysts rate the stock a Buy, three a Hold and one a Sell, resulting in a consensus “Moderate Buy” rating and average target of $45.44.
• International Paper reported quarterly EPS of $0.37, beating expectations of $0.29, though revenue of $6.20 billion fell short of estimates and declined slightly year over year.

International Paper (NYSE:IP - Get Free Report) had its price objective lowered by Citigroup from $47.00 to $41.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the basic materials company's stock. Citigroup's price objective would suggest a potential upside of 12.64% from the company's current price.

IP has been the subject of a number of other reports. Loop Capital set a $61.00 price objective on shares of International Paper in a report on Tuesday, July 28th. Zacks Research raised International Paper from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Bank of America restated a "buy" rating on shares of International Paper in a research report on Thursday. Argus reaffirmed a "buy" rating and set a $45.00 price target on shares of International Paper in a research note on Thursday, September 24th. Finally, JPMorgan Chase & Co. dropped their price target on International Paper from $62.00 to $51.00 and set an "overweight" rating for the company in a research note on Thursday. Ten investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $45.44.

International Paper Price Performance

NYSE:IP traded up $0.37 during trading hours on Friday, hitting $36.40. 7,106,536 shares of the company's stock traded hands, compared to its average volume of 6,257,439. International Paper has a 52 week low of $29.26 and a 52 week high of $50.25. The business's fifty day simple moving average is $35.04 and its two-hundred day simple moving average is $37.46. The company has a quick ratio of 0.84, a current ratio of 1.01 and a debt-to-equity ratio of 0.59. The firm has a market cap of $19.28 billion, a P/E ratio of -5.55, a P/E/G ratio of 4.56 and a beta of 0.93.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The basic materials company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.08. The firm had revenue of $6.20 billion for the quarter, compared to analysts' expectations of $6.28 billion. International Paper had a positive return on equity of 1.77% and a negative net margin of 14.32%. The company's revenue was down .4% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.43) EPS. On average, research analysts anticipate that International Paper will post 1.26 earnings per share for the current fiscal year.

Insider Activity at International Paper

In related news, VP William Hamic sold 24,500 shares of International Paper stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $41.20, for a total value of $1,009,400.00. Following the completion of the transaction, the vice president owned 106,952 shares in the company, valued at approximately $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total value of $146,860.00. Following the sale, the chief accounting officer directly owned 34,248 shares in the company, valued at $1,437,046.08. The trade was a 9.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On International Paper

Several institutional investors have recently modified their holdings of IP. Stephens Inc. AR raised its stake in shares of International Paper by 1.3% in the first quarter. Stephens Inc. AR now owns 23,032 shares of the basic materials company's stock worth $853,000 after purchasing an additional 298 shares during the last quarter. Rockefeller Capital Management L.P. grew its position in International Paper by 2.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 13,274 shares of the basic materials company's stock valued at $523,000 after buying an additional 302 shares during the period. Ranch Capital Advisors Inc. increased its holdings in International Paper by 0.8% in the first quarter. Ranch Capital Advisors Inc. now owns 45,785 shares of the basic materials company's stock valued at $1,635,000 after buying an additional 364 shares in the last quarter. Arvest Bank Trust Division increased its holdings in International Paper by 1.2% in the first quarter. Arvest Bank Trust Division now owns 41,480 shares of the basic materials company's stock valued at $1,481,000 after buying an additional 509 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in shares of International Paper by 8.8% in the second quarter. GAMMA Investing LLC now owns 6,382 shares of the basic materials company's stock worth $243,000 after acquiring an additional 517 shares during the period. 81.95% of the stock is owned by institutional investors.

About International Paper

International Paper NYSE: IP is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.