Bessemer Group Inc. Sells 242,436 Shares of International Paper Company $IP

Key Points

• Bessemer Group Inc. cut its International Paper stake by 9.4% in the fourth quarter, selling 242,436 shares and leaving it with 2,346,925 shares valued at about $92.4 million.
• International Paper reported weaker-than-expected quarterly results, posting earnings of $0.15 per share versus estimates of $0.18 and revenue of $5.97 billion versus $6.02 billion expected.
• The company declared a quarterly dividend of $0.4625 per share, equal to an annualized yield of 6.1%, while analysts currently hold a consensus rating of Moderate Buy with a target price of $43.73.

Bessemer Group Inc. reduced its position in shares of International Paper Company (NYSE:IP - Free Report) by 9.4% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 2,346,925 shares of the basic materials company's stock after selling 242,436 shares during the quarter. Bessemer Group Inc. owned 0.44% of International Paper worth $92,446,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of IP. Capital International Investors increased its stake in International Paper by 51.4% during the 3rd quarter. Capital International Investors now owns 48,990,719 shares of the basic materials company's stock valued at $2,272,966,000 after purchasing an additional 16,622,062 shares in the last quarter. Capital Research Global Investors increased its stake in International Paper by 7.5% during the 3rd quarter. Capital Research Global Investors now owns 54,330,790 shares of the basic materials company's stock valued at $2,520,945,000 after purchasing an additional 3,768,772 shares in the last quarter. Invesco Ltd. increased its stake in International Paper by 11.8% during the 3rd quarter. Invesco Ltd. now owns 9,121,170 shares of the basic materials company's stock valued at $423,222,000 after purchasing an additional 960,240 shares in the last quarter. BNP Paribas Financial Markets increased its stake in International Paper by 19.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 5,039,300 shares of the basic materials company's stock valued at $233,824,000 after purchasing an additional 809,727 shares in the last quarter. Finally, SG Americas Securities LLC increased its stake in International Paper by 94.8% during the 4th quarter. SG Americas Securities LLC now owns 1,590,689 shares of the basic materials company's stock valued at $62,657,000 after purchasing an additional 774,301 shares in the last quarter. 81.95% of the stock is currently owned by institutional investors.

International Paper Stock Performance

IP opened at $30.21 on Friday. The firm has a market cap of $16.00 billion, a P/E ratio of -4.75 and a beta of 0.93. International Paper Company has a 1-year low of $29.45 and a 1-year high of $56.13. The company has a 50 day simple moving average of $35.20 and a two-hundred day simple moving average of $39.12. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.21 and a quick ratio of 0.94.

International Paper (NYSE:IP - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.03). The firm had revenue of $5.97 billion during the quarter, compared to the consensus estimate of $6.02 billion. International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.The business's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.17 earnings per share. Equities analysts forecast that International Paper Company will post 1.43 earnings per share for the current fiscal year.

International Paper Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be paid a dividend of $0.4625 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.85 dividend on an annualized basis and a yield of 6.1%. International Paper's dividend payout ratio is presently -29.09%.

Analyst Ratings Changes

A number of analysts have weighed in on IP shares. Wells Fargo & Company upgraded shares of International Paper from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $38.00 to $39.00 in a research note on Monday, May 4th. Royal Bank Of Canada reduced their price objective on shares of International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Citigroup decreased their price objective on shares of International Paper from $44.00 to $36.00 and set a "buy" rating for the company in a report on Friday, May 1st. Zacks Research cut shares of International Paper from a "hold" rating to a "strong sell" rating in a report on Thursday, April 23rd. Finally, Seaport Research Partners raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price objective for the company in a report on Friday, May 1st. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $43.73.

Insiders Place Their Bets

In other International Paper news, Director Anders Gustafsson purchased 13,217 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were bought at an average price of $37.83 per share, with a total value of $499,999.11. Following the completion of the purchase, the director directly owned 26,092 shares in the company, valued at $987,060.36. This trade represents a 102.66% increase 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, Director Scott Tozier bought 10,000 shares of International Paper stock in a transaction dated Friday, May 1st. The stock was purchased at an average cost of $31.30 per share, for a total transaction of $313,000.00. Following the purchase, the director owned 10,025 shares of the company's stock, valued at approximately $313,782.50. This trade represents a 40,000.00% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have purchased 36,092 shares of company stock worth $1,313,064. 0.21% of the stock is owned by insiders.

International Paper 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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