Wall Street Zen Upgrades International Paper (NYSE:IP) to Hold

Key Points

• Wall Street Zen upgraded International Paper from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy,” with a $49.13 average price target.
• International Paper reported quarterly EPS of $0.04, beating estimates of a $0.04 loss, but revenue fell 11.3% year over year to $6 billion and the company posted negative margins.
• Company insiders sold shares in August, while institutional investors own approximately 81.95% of International Paper’s stock.

International Paper (NYSE:IP - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently commented on the stock. JPMorgan Chase & Co. upgraded shares of International Paper from a "neutral" rating to an "overweight" rating and increased their target price for the company from $51.00 to $61.00 in a research report on Tuesday, July 28th. Royal Bank Of Canada boosted their price target on shares of International Paper from $48.00 to $52.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Wells Fargo & Company upped their price objective on shares of International Paper from $42.00 to $46.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. UBS Group increased their price objective on shares of International Paper from $40.00 to $47.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Finally, Bank of America raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $46.00 target price on the stock in a research note on Friday, September 11th. Ten equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $49.13.

International Paper Stock Performance

IP opened at $34.56 on Friday. The company has a quick ratio of 0.84, a current ratio of 1.10 and a debt-to-equity ratio of 0.57. The company has a market cap of $18.30 billion, a price-to-earnings ratio of -5.30, a PEG ratio of 4.47 and a beta of 0.93. International Paper has a 52-week low of $29.26 and a 52-week high of $50.25. The firm's fifty day simple moving average is $38.89 and its two-hundred day simple moving average is $36.64.

International Paper (NYSE:IP - Get Free Report) last released its earnings results on Thursday, July 30th. The basic materials company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.08. The business had revenue of $6 billion during the quarter, compared to analysts' expectations of $6.19 billion. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The company's quarterly revenue was down 11.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.20 earnings per share. Equities analysts anticipate that International Paper will post 1.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, VP William Hamic sold 24,500 shares of the stock in a transaction dated 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 legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of the firm's stock in a transaction dated 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 owned 34,248 shares of the company's stock, valued at $1,437,046.08. This trade represents a 9.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. MV Capital Management Inc. purchased a new stake in shares of International Paper during the fourth quarter worth $25,000. Aberdeen Wealth Management LLC acquired a new position in International Paper during the 2nd quarter worth $27,000. Ascentis Independent Advisors acquired a new position in International Paper during the 1st quarter worth $28,000. Delta Asset Management LLC TN purchased a new stake in International Paper during the 2nd quarter worth about $31,000. Finally, MCF Advisors LLC raised its position in International Paper by 36.7% in the 4th quarter. MCF Advisors LLC now owns 853 shares of the basic materials company's stock valued at $34,000 after purchasing an additional 229 shares in the last quarter. Hedge funds and other institutional investors own 81.95% of the company's stock.

International Paper Company Profile

International Paper Company NYSE: IP is a global producer of sustainable packaging and paper-based products. The company manufactures containerboard, corrugated packaging, and other fiber-based packaging solutions used to transport and protect goods across a range of industries. Its offerings also include absorbent pulp and cellulose fibers used in products such as diapers, hygiene items, and other consumer and industrial applications.

Founded in 1898, International Paper has grown through the development and operation of paper mills, packaging facilities, and related manufacturing assets.

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