Bank of America Corp DE Takes Position in International Paper Company $IP

Key Points

• Bank of America acquired 3.75 million shares of International Paper during the second quarter, valued at approximately $142.8 million and representing 0.71% of the company. Institutional investors collectively own 81.95% of the stock.
• 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. The company maintains a quarterly dividend of $0.4625 per share, equivalent to a 5.2% annualized yield.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $49.13, despite recent insider share sales and one analyst downgrade to “sell.”

Bank of America Corp DE purchased a new stake in shares of International Paper Company (NYSE:IP - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 3,748,072 shares of the basic materials company's stock, valued at approximately $142,802,000. Bank of America Corp DE owned approximately 0.71% of International Paper at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in IP. Capital International Investors raised its stake in International Paper by 29.4% during the fourth quarter. Capital International Investors now owns 63,413,335 shares of the basic materials company's stock worth $2,498,013,000 after acquiring an additional 14,422,616 shares during the period. Capital Research Global Investors raised its position in shares of International Paper by 0.4% during the 4th quarter. Capital Research Global Investors now owns 54,535,444 shares of the basic materials company's stock worth $2,148,154,000 after purchasing an additional 204,654 shares during the period. BlackRock Inc. acquired a new position in International Paper during the 2nd quarter valued at approximately $1,940,896,000. Bank of New York Mellon Corp acquired a new position in International Paper during the 2nd quarter valued at approximately $689,498,000. Finally, Franklin Resources Inc. grew its stake in International Paper by 81.6% during the 4th quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock worth $584,270,000 after buying an additional 6,663,986 shares during the last quarter. 81.95% of the stock is currently owned by institutional investors.

Insider Transactions at International Paper

In other news, VP William Hamic sold 24,500 shares of International Paper stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $41.20, for a total value of $1,009,400.00. Following the transaction, the vice president directly owned 106,952 shares of the company's stock, valued at $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Holly G. Goughnour sold 3,500 shares of the business'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 transaction of $146,860.00. Following the sale, the chief accounting officer owned 34,248 shares in the company, valued at $1,437,046.08. This represents a 9.27% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.21% of the stock is currently owned by corporate insiders.

International Paper Price Performance

NYSE IP opened at $35.54 on Friday. International Paper Company has a 1 year low of $29.26 and a 1 year high of $50.25. The business's fifty day moving average is $38.96 and its two-hundred day moving average is $36.65. The stock has a market capitalization of $18.82 billion, a P/E ratio of -5.45, a P/E/G ratio of 4.28 and a beta of 0.93. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.84 and a current ratio of 1.10.

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

International Paper Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th were issued a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a yield of 5.2%. The ex-dividend date was Friday, August 14th. International Paper's payout ratio is presently -28.37%.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Seaport Research Partners restated a "buy" rating and set a $46.00 price target on shares of International Paper in a research report on Wednesday, August 12th. Wall Street Zen downgraded shares of International Paper from a "hold" rating to a "sell" rating in a research report on Tuesday, August 25th. Truist Financial reissued a "buy" rating and set a $49.00 target price (up from $46.00) on shares of International Paper in a research note on Friday, July 31st. Zacks Research upgraded shares of International Paper from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Finally, Loop Capital set a $61.00 price target on shares of International Paper in a research note on Tuesday, July 28th. 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 data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $49.13.

International Paper 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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