18,097,056 Shares in International Paper Company $IP Acquired by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon acquired 18.1 million International Paper shares in the second quarter, worth approximately $689.5 million and representing a 3.42% stake. Institutional investors collectively own 81.95% of the company.
• International Paper reported quarterly EPS of $0.04, beating estimates for a $0.04 loss, while revenue fell 11.3% year over year to $6 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $48.75.
• The company declared a quarterly dividend of $0.4625 per share, equivalent to $1.85 annually and a 4.6% yield. Two company insiders recently sold shares, reducing their individual holdings.

Bank of New York Mellon Corp bought a new stake in International Paper Company (NYSE:IP - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 18,097,056 shares of the basic materials company's stock, valued at approximately $689,498,000. Bank of New York Mellon Corp owned about 3.42% of International Paper as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. McIlrath & Eck LLC lifted its position in International Paper by 452.6% during the fourth quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock worth $25,000 after buying an additional 525 shares in the last quarter. MV Capital Management Inc. acquired a new stake in International Paper during the fourth quarter worth about $25,000. DV Equities LLC acquired a new stake in International Paper during the fourth quarter worth about $29,000. Ascentis Independent Advisors purchased a new position in International Paper during the first quarter worth about $28,000. Finally, Kelleher Financial Advisors purchased a new position in International Paper during the third quarter worth about $36,000. 81.95% of the stock is owned by hedge funds and other institutional investors.

International Paper Stock Performance

NYSE:IP opened at $40.42 on Friday. International Paper Company has a fifty-two week low of $29.26 and a fifty-two week high of $50.25. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.84 and a current ratio of 1.10. The company has a 50 day moving average price of $39.10 and a 200 day moving average price of $37.90. The stock has a market capitalization of $21.41 billion, a P/E ratio of -6.20 and a beta of 0.94.

International Paper (NYSE:IP - Get Free Report) last released its quarterly 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 company had revenue of $6 billion for the quarter, compared to analysts' expectations of $6.19 billion. International Paper had a negative return on equity of 1.09% and a negative net margin of 14.20%.The firm's revenue was down 11.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.20 earnings per share. Equities research analysts forecast that International Paper Company will post 1.34 EPS for the current year.

International Paper Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be issued a $0.4625 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 4.6%. International Paper's payout ratio is -28.37%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on IP shares. Wall Street Zen raised shares of International Paper from a "sell" rating to a "hold" rating in a research note on Monday. Seaport Research Partners reaffirmed a "buy" rating and set a $46.00 price target on shares of International Paper in a research report on Wednesday, August 12th. Loop Capital set a $61.00 price objective on International Paper in a report on Tuesday, July 28th. Citigroup raised their target price on International Paper from $43.00 to $48.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Finally, Zacks Research upgraded International Paper from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Nine equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $48.75.

Insider Activity at International Paper

In other International Paper news, CAO Holly G. Goughnour sold 3,500 shares of the firm's stock in a transaction that occurred 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 completion of 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 position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP William Thomas Hamic sold 24,500 shares of the business'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 completion of the transaction, the vice president 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 position. The disclosure for this sale is available in the SEC filing. 0.21% of the stock is owned by corporate insiders.

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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