International Paper (NYSE:IP) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded International Paper to “Sell” from “Hold,” although the broader analyst consensus remains “Moderate Buy,” with 9 Buy, 4 Hold, and 1 Sell rating and an average price target of $48.75.
• International Paper reported quarterly EPS of $0.04, beating the expected $0.04 loss, but revenue fell 11.3% year over year to $6 billion and the company posted a negative net margin of 14.2%.
• Shares opened at $41.03, down 1.1%, while two company executives recently sold stock; institutional investors and hedge funds collectively own 81.95% of the company.

International Paper (NYSE:IP - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Tuesday.

Several other equities research analysts have also recently weighed in on IP. Truist Financial reissued a "buy" rating and issued a $49.00 price objective (up from $46.00) on shares of International Paper in a research report on Friday, July 31st. Loop Capital set a $61.00 target price on shares of International Paper in a research note on Tuesday, July 28th. Citigroup increased their price target on shares of International Paper from $43.00 to $48.00 and gave the company a "buy" rating in a report on Friday, July 31st. Zacks Research upgraded shares of International Paper from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Finally, Bank of America lowered shares of International Paper from a "buy" rating to a "neutral" rating and set a $41.00 price objective for the company. in a research report on Tuesday, July 14th. Nine research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $48.75.

International Paper Trading Down 1.1%

Shares of IP opened at $41.03 on Tuesday. The business's 50-day moving average price is $39.30 and its 200 day moving average price is $37.90. The company has a current ratio of 1.10, a quick ratio of 0.84 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $21.73 billion, a P/E ratio of -6.29 and a beta of 0.94. International Paper has a 1-year low of $29.26 and a 1-year high of $50.25.

International Paper (NYSE:IP - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.08. The business had revenue of $6 billion for the quarter, compared to the consensus estimate of $6.19 billion. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. International Paper's revenue for the quarter was down 11.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.20 earnings per share. Analysts expect that International Paper will post 1.34 earnings per share for the current year.

Insider Activity at International Paper

In other International Paper news, VP William Thomas Hamic sold 24,500 shares of the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $41.20, for a total transaction of $1,009,400.00. Following the transaction, the vice president owned 106,952 shares of the company's stock, valued at approximately $4,406,422.40. This represents a 18.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Holly G. Goughnour sold 3,500 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total value of $146,860.00. Following the transaction, the chief accounting officer directly owned 34,248 shares in the company, valued at $1,437,046.08. This trade represents a 9.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On International Paper

Several institutional investors have recently modified their holdings of IP. MCF Advisors LLC boosted its stake in shares of International Paper by 36.7% during the fourth quarter. MCF Advisors LLC now owns 853 shares of the basic materials company's stock worth $34,000 after buying an additional 229 shares during the period. Rothschild Investment LLC raised its holdings in International Paper by 4.2% during the fourth quarter. Rothschild Investment LLC now owns 5,993 shares of the basic materials company's stock worth $236,000 after purchasing an additional 242 shares in the last quarter. Independent Advisor Alliance lifted its position in International Paper by 3.3% in the fourth quarter. Independent Advisor Alliance now owns 7,750 shares of the basic materials company's stock valued at $305,000 after purchasing an additional 244 shares during the period. Horizon Investments LLC boosted its holdings in International Paper by 3.3% in the 4th quarter. Horizon Investments LLC now owns 8,456 shares of the basic materials company's stock valued at $333,000 after purchasing an additional 267 shares in the last quarter. Finally, Stephens Inc. AR boosted its holdings in International Paper by 1.3% in the 1st quarter. Stephens Inc. AR now owns 23,032 shares of the basic materials company's stock valued at $853,000 after purchasing an additional 298 shares in the last quarter. 81.95% of the stock is currently owned by institutional investors and hedge funds.

International Paper Company Profile

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.

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