International Paper Company (NYSE:IP) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analyst sentiment is moderately positive: Fourteen brokerages give International Paper a consensus “Moderate Buy” rating, with ten buys, three holds, and one sell. The average 12-month price target is $45.44 versus the stock’s recent $36.40 price.
• Quarterly earnings exceeded expectations: International Paper reported adjusted EPS of $0.37, topping the $0.29 consensus estimate, though revenue of $6.20 billion slightly missed forecasts and declined 0.4% year over year.
• The company maintains an attractive dividend but saw insider selling: International Paper declared a quarterly dividend of $0.4625 per share, implying a 5.1% annual yield. Two executives sold shares in August, while institutional investors own 81.95% of the company.

International Paper Company (NYSE:IP - Get Free Report) has received a consensus rating of "Moderate Buy" from the fourteen research firms that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating, three have assigned a hold rating and ten have given a buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $45.44.

IP has been the topic of a number of research analyst reports. Loop Capital set a $61.00 target price on shares of International Paper in a research note on Tuesday, July 28th. Seaport Research Partners reaffirmed a "buy" rating and set a $46.00 price target on shares of International Paper in a research note on Wednesday, August 12th. Citigroup lowered their price target on International Paper from $47.00 to $41.00 and set a "buy" rating for the company in a report on Friday. Weiss Ratings cut International Paper from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, October 8th. Finally, Zacks Research upgraded International Paper from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th.

Insider Buying and Selling at International Paper

In related news, CAO Holly G. Goughnour sold 3,500 shares of International Paper stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total value of $146,860.00. Following the completion of 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 transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP William Hamic sold 24,500 shares of the company's 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 completion of the sale, the vice president directly owned 106,952 shares of the company's stock, valued at approximately $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On International Paper

A number of hedge funds have recently made changes to their positions in IP. Covestor Ltd purchased a new position in International Paper in the third quarter worth $74,000. Richardson Financial Services Inc. acquired a new position in shares of International Paper during the third quarter worth $26,000. Ascent Group LLC purchased a new stake in shares of International Paper in the third quarter valued at approximately $945,000. Caldwell Trust Co purchased a new position in shares of International Paper during the 3rd quarter valued at approximately $113,000. Finally, Southern Financial Group LLC purchased a new position in shares of International Paper during the 3rd quarter valued at approximately $227,000. 81.95% of the stock is currently owned by hedge funds and other institutional investors.

International Paper Stock Up 1.0%

Shares of IP opened at $36.40 on Friday. The firm has a fifty day moving average price of $34.96 and a 200-day moving average price of $37.43. The company has a current ratio of 1.01, a quick ratio of 0.84 and a debt-to-equity ratio of 0.59. The firm has a market capitalization of $19.28 billion, a P/E ratio of -5.55, a P/E/G ratio of 4.88 and a beta of 0.93. International Paper has a 12-month low of $29.26 and a 12-month high of $50.25.

International Paper (NYSE:IP - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The basic materials company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.29 by $0.08. International Paper had a negative net margin of 14.32% and a positive return on equity of 1.77%. The company had revenue of $6.20 billion for the quarter, compared to the consensus estimate of $6.28 billion. During the same quarter last year, the firm posted ($0.43) EPS. The firm's revenue was down .4% compared to the same quarter last year. Equities research analysts expect that International Paper will post 1.23 earnings per share for the current year.

International Paper Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 16th will be given a dividend of $0.4625 per share. The ex-dividend date of this dividend is Monday, November 16th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 5.1%. International Paper's dividend payout ratio is presently -28.20%.

International Paper Company Profile

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.

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