Canada Pension Plan Investment Board Makes New Investment in International Paper Company $IP

Key Points

• Canada Pension Plan Investment Board acquired 290,355 shares of International Paper in the second quarter, worth approximately $11.1 million; institutional investors collectively own 81.95% of the company.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $48.75. Recent targets range from $48 to $61.
• International Paper reported quarterly EPS of $0.04, beating estimates, but revenue fell 11.3% year over year to $6 billion. The company also declared a quarterly dividend of $0.4625 per share, implying a 4.7% annual yield.

Canada Pension Plan Investment Board bought a new stake in shares of International Paper Company (NYSE:IP - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 290,355 shares of the basic materials company's stock, valued at approximately $11,054,000. Canada Pension Plan Investment Board owned approximately 0.05% of International Paper at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. McIlrath & Eck LLC boosted its holdings in International Paper by 452.6% in the fourth quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock valued at $25,000 after purchasing an additional 525 shares during the last quarter. MV Capital Management Inc. purchased a new stake in International Paper during the 4th quarter worth approximately $25,000. Aberdeen Wealth Management LLC acquired a new position in shares of International Paper in the 2nd quarter valued at approximately $27,000. Ascentis Independent Advisors acquired a new position in shares of International Paper in the 1st quarter valued at approximately $28,000. Finally, DV Equities LLC purchased a new position in shares of International Paper during the 4th quarter valued at approximately $29,000. 81.95% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on IP shares. Royal Bank Of Canada raised their price target on shares of International Paper from $48.00 to $52.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Citigroup upped their price target on shares of International Paper from $43.00 to $48.00 and gave the company a "buy" rating in a report on Friday, July 31st. Zacks Research upgraded shares of International Paper from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Weiss Ratings raised shares of International Paper from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, August 21st. Finally, Loop Capital set a $61.00 target price on shares of International Paper in a research report on Tuesday, July 28th. Nine research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, International Paper currently has an average rating of "Moderate Buy" and a consensus price target of $48.75.

Insider Transactions at International Paper

In other news, CAO Holly G. Goughnour sold 3,500 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total value of $146,860.00. Following the transaction, the chief accounting officer directly owned 34,248 shares in the company, valued at approximately $1,437,046.08. This trade represents a 9.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP William Thomas Hamic sold 24,500 shares of International Paper stock in a transaction dated Friday, August 7th. The shares were 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 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 disclosure for this sale is available in the SEC filing. Company insiders own 0.21% of the company's stock.

International Paper Price Performance

Shares of NYSE IP opened at $39.34 on Friday. International Paper Company has a twelve month low of $29.26 and a twelve month high of $50.25. The company has a current ratio of 1.10, a quick ratio of 0.84 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $20.83 billion, a price-to-earnings ratio of -6.03 and a beta of 0.94. The business has a 50 day simple moving average of $39.62 and a 200-day simple moving average of $37.81.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.08. The firm 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 for the quarter was down 11.3% on a year-over-year basis. During the same period last year, the business posted $0.20 earnings per share. As a group, equities research analysts expect that International Paper Company will post 1.34 earnings per share for the current year.

International Paper Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date of this dividend is Friday, August 14th. International Paper's dividend payout ratio is -28.37%.

About International Paper

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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