BlackRock Inc. Purchases New Holdings in International Paper Company $IP

Key Points

• BlackRock acquired 50.9 million shares of International Paper during the second quarter, valued at approximately $1.94 billion and representing a 9.62% stake. Institutional investors collectively own 81.95% of the company.
• International Paper reported quarterly EPS of $0.04, beating the consensus estimate of a $0.04 loss, but 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 an annualized $1.85 payout and a 4.5% yield. Two insiders recently sold shares, while insider ownership stands at 0.21%.

BlackRock Inc. purchased a new position in shares of International Paper Company (NYSE:IP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 50,942,140 shares of the basic materials company's stock, valued at approximately $1,940,896,000. BlackRock Inc. owned approximately 9.62% of International Paper at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in IP. McIlrath & Eck LLC grew its holdings in shares of International Paper by 452.6% during the 4th quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock worth $25,000 after purchasing an additional 525 shares in the last quarter. MV Capital Management Inc. acquired a new position in International Paper in the fourth quarter valued at about $25,000. Ascentis Independent Advisors bought a new stake in International Paper during the first quarter worth about $28,000. DV Equities LLC bought a new stake in International Paper during the fourth quarter worth about $29,000. Finally, Summit Securities Group LLC increased its holdings in International Paper by 115.4% in the 4th quarter. Summit Securities Group LLC now owns 784 shares of the basic materials company's stock valued at $31,000 after buying an additional 5,875 shares during the period. Institutional investors own 81.95% of the company's stock.

International Paper Stock Performance

Shares of International Paper stock opened at $40.99 on Thursday. The company's 50 day moving average price is $39.00 and its two-hundred day moving average price is $37.90. The firm has a market capitalization of $21.71 billion, a P/E ratio of -6.29 and a beta of 0.94. 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 current ratio of 1.10 and a quick ratio of 0.84.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.04 EPS for the quarter, beating analysts' consensus estimates 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 company had revenue of $6 billion during the quarter, compared to analysts' expectations of $6.19 billion. During the same period in the prior year, the company earned $0.20 EPS. International Paper's revenue was down 11.3% compared to the same quarter last year. On average, equities analysts forecast that International Paper Company will post 1.34 earnings per share for the current fiscal year.

International Paper Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be given a $0.4625 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.85 annualized dividend and a yield of 4.5%. International Paper's dividend payout ratio (DPR) is currently -28.37%.

Insider Activity

In other news, VP William Thomas Hamic sold 24,500 shares of the company'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 value 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 $4,406,422.40. This represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, 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 transaction 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 approximately $1,437,046.08. This trade represents a 9.27% decrease in their position. The SEC filing for this sale provides additional information. 0.21% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

IP has been the topic of a number of recent analyst reports. Loop Capital set a $61.00 price objective on shares of International Paper in a research note on Tuesday, July 28th. Royal Bank Of Canada raised their target price on International Paper from $48.00 to $52.00 and gave the company an "outperform" rating in a report on Friday, July 31st. Wall Street Zen upgraded International Paper from a "sell" rating to a "hold" rating in a research note on Monday. Seaport Research Partners reissued a "buy" rating and set a $46.00 price target on shares of International Paper in a report on Wednesday, August 12th. Finally, Bank of America lowered International Paper from a "buy" rating to a "neutral" rating and set a $41.00 price objective on the stock. in a research note on Tuesday, July 14th. Nine investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, International Paper presently has an average rating of "Moderate Buy" and a consensus target price of $48.75.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source