134,742 Shares of International Paper Company $IP Acquired by D.A. Davidson & CO.

Key Points

• D.A. Davidson acquired 134,742 shares of International Paper in the third quarter, worth approximately $4.47 million. Institutional investors collectively own 81.95% of IP’s outstanding stock.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $45.44, although Citigroup and Wells Fargo recently lowered their targets.
• International Paper beat quarterly EPS estimates, reporting $0.37 versus $0.29 expected, but remains unprofitable overall. Its 5.1% dividend yield is attractive, while negative free cash flow and elevated capital spending raise questions about dividend sustainability.

D.A. Davidson & CO. purchased a new stake in International Paper Company (NYSE:IP - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 134,742 shares of the basic materials company's stock, valued at approximately $4,469,000.

Other hedge funds have also bought and sold shares of the company. Man Group plc purchased a new stake in International Paper during the second quarter worth $24,640,000. Mitchell & Pahl Private Wealth LLC purchased a new position in International Paper in the third quarter valued at $2,122,000. The Manufacturers Life Insurance Company increased its holdings in International Paper by 50.0% in the second quarter. The Manufacturers Life Insurance Company now owns 1,167,393 shares of the basic materials company's stock valued at $44,478,000 after buying an additional 389,092 shares in the last quarter. Amundi purchased a new stake in shares of International Paper during the 2nd quarter worth about $82,666,000. Finally, HighTower Advisors LLC purchased a new stake in shares of International Paper during the 2nd quarter worth about $1,603,000. Hedge funds and other institutional investors own 81.95% of the company's stock.

Key Stories Impacting International Paper

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Analysts’ average price target is reported at $45.44, implying meaningful potential upside from the recent trading level. Citigroup also maintained a Buy rating, although it reduced its target to $41 from $47. International Paper Company Stock Has Average Target Price Citigroup International Paper price target
• Positive Sentiment: IP’s stock crossed above its 50-day moving average, a potentially constructive technical signal that may support near-term investor sentiment despite an analyst downgrade. International Paper crosses above 50-day moving average
• Neutral Sentiment: An earnings-call review describes a balance between operational gains and ongoing risks, suggesting that investors are weighing improvement opportunities against execution and industry challenges. International Paper earnings call balances gains and risks
• Negative Sentiment: JPMorgan Chase lowered its price target for IP, adding to evidence that some analysts see less near-term upside even as the broader target average remains above the current market level. JPMorgan cuts International Paper price target
• Negative Sentiment: A reported large loss raises concerns about profitability and weakens the case that the shares are clearly undervalued. International Paper posted a large loss
• Negative Sentiment: The company’s roughly 5.5% dividend yield is attracting attention, but free cash flow has turned negative while capital spending is expected to remain elevated. That raises questions about dividend sustainability and could limit investor enthusiasm. International Paper dividend and free cash flow analysis

Analyst Ratings Changes

Several brokerages recently weighed in on IP. Seaport Research Partners restated a "buy" rating and issued a $46.00 price target on shares of International Paper in a research note on Wednesday, August 12th. Wells Fargo & Company lowered their price target on International Paper from $46.00 to $42.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 7th. Loop Capital set a $61.00 price objective on 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 report on Monday, July 13th. Finally, Citigroup cut their price objective on International Paper from $47.00 to $41.00 and set a "buy" rating for the company in a research report on Friday. Ten research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $45.44.

International Paper Trading Up 1.0%

Shares of International Paper stock opened at $36.40 on Friday. The company has a current ratio of 1.01, a quick ratio of 0.84 and a debt-to-equity ratio of 0.59. International Paper Company has a twelve month low of $29.26 and a twelve month high of $50.25. The firm has a market capitalization of $19.28 billion, a PE ratio of -5.55, a P/E/G ratio of 4.92 and a beta of 0.93. The firm's 50-day moving average price is $34.96 and its 200 day moving average price is $37.43.

International Paper (NYSE:IP - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $6.20 billion during the quarter, compared to analyst estimates of $6.28 billion. International Paper had a positive return on equity of 1.77% and a negative net margin of 14.32%. International Paper's quarterly revenue was down .4% on a year-over-year basis. During the same period in the previous year, the business earned ($0.43) EPS. On average, sell-side analysts predict that International Paper Company will post 1.13 EPS for the current fiscal year.

International Paper Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 16th will be issued 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%.

Insiders Place Their Bets

In related news, CAO Holly G. Goughnour sold 3,500 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total transaction of $146,860.00. Following the completion of the sale, the chief accounting officer owned 34,248 shares of the company's stock, valued at approximately $1,437,046.08. This represents a 9.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP William Hamic sold 24,500 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the vice president directly owned 106,952 shares in the company, valued at $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.21% of the stock is owned by corporate insiders.

International Paper 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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