Capital World Investors Grows Position in International Paper Company $IP

Key Points

• Capital World Investors increased its stake in International Paper by 1.8% in the fourth quarter, ending with 6.33 million shares worth about $249.4 million. Institutional investors still own a large majority of the company at 81.95%.
• International Paper reported mixed quarterly results, with earnings of $0.15 per share missing estimates of $0.18 and revenue of $5.97 billion slightly below expectations. The company also posted a negative net margin and negative return on equity, despite revenue rising 13.4% year over year.
• The company announced a quarterly dividend of $0.4625 per share, or $1.85 annualized, for a yield of about 5.6%. Meanwhile, analysts maintain a generally positive outlook, with an average rating of “Moderate Buy” and an average price target of $43.73.

Capital World Investors raised its holdings in shares of International Paper Company (NYSE:IP - Free Report) by 1.8% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 6,332,121 shares of the basic materials company's stock after buying an additional 111,311 shares during the quarter. Capital World Investors owned about 1.20% of International Paper worth $249,422,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. McIlrath & Eck LLC grew its holdings in shares of 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. Sound Income Strategies LLC lifted its stake in International Paper by 94.0% in the 4th quarter. Sound Income Strategies LLC now owns 710 shares of the basic materials company's stock worth $31,000 after purchasing an additional 344 shares in the last quarter. MCF Advisors LLC lifted its stake in International Paper by 36.7% in the 4th quarter. MCF Advisors LLC now owns 853 shares of the basic materials company's stock worth $34,000 after purchasing an additional 229 shares in the last quarter. Kelleher Financial Advisors purchased a new position in International Paper in the 3rd quarter worth approximately $36,000. Finally, Laurel Wealth Advisors LLC purchased a new position in International Paper in the 4th quarter worth approximately $37,000. Hedge funds and other institutional investors own 81.95% of the company's stock.

Insiders Place Their Bets

In related news, Director Anders Gustafsson acquired 13,217 shares of the business's stock in a transaction dated Thursday, March 12th. The shares were acquired at an average price of $37.83 per share, with a total value of $499,999.11. Following the completion of the transaction, the director owned 26,092 shares of the company's stock, valued at $987,060.36. The trade was a 102.66% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Scott Tozier acquired 10,000 shares of the business's stock in a transaction dated Friday, May 1st. The shares were bought at an average cost of $31.30 per share, for a total transaction of $313,000.00. Following the transaction, the director directly 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. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 36,092 shares of company stock worth $1,313,064 in the last ninety days. Corporate insiders own 0.21% of the company's stock.

International Paper Stock Down 2.3%

International Paper stock opened at $32.83 on Tuesday. International Paper Company has a twelve month low of $29.26 and a twelve month high of $56.13. The stock's fifty day simple moving average is $33.69 and its 200-day simple moving average is $38.36. The company has a current ratio of 1.21, a quick ratio of 0.94 and a debt-to-equity ratio of 0.55. The firm has a market capitalization of $17.39 billion, a P/E ratio of -5.16 and a beta of 0.96.

International Paper (NYSE:IP - Get Free Report) last posted its quarterly earnings data 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). International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.The company had revenue of $5.97 billion for the quarter, compared to analysts' expectations of $6.02 billion. During the same period in the prior year, the company posted $0.17 EPS. The firm's revenue was up 13.4% compared to the same quarter last year. As a group, equities analysts expect that International Paper Company will post 1.38 earnings per share for the current fiscal year.

International Paper Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be given 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 dividend yield of 5.6%. International Paper's dividend payout ratio is currently -29.09%.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Weiss Ratings downgraded International Paper from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, April 27th. Seaport Research Partners upgraded International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price objective on the stock in a research report on Friday, May 1st. BNP Paribas Exane reduced their price objective on International Paper from $44.00 to $42.00 and set an "outperform" rating on the stock in a research report on Wednesday, March 25th. Truist Financial reduced their price objective on International Paper from $48.00 to $44.00 and set a "buy" rating on the stock in a research report on Wednesday, April 15th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on International Paper in a research report on Wednesday, April 1st. They set a "hold" rating and a $38.00 price objective on the stock. Nine investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $43.73.

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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