Ceredex Value Advisors LLC Makes New Investment in International Paper Company $IP

Key Points

• Ceredex Value Advisors initiated a position in International Paper during the second quarter, buying 1.21 million shares valued at approximately $45.9 million. The investment represents about 1.3% of Ceredex’s portfolio and 0.23% of International Paper’s shares.
• International Paper reported quarterly EPS of $0.04, beating estimates for a $0.04 loss, but revenue fell 11.3% year over year to $6 billion. The company declared a quarterly dividend of $0.4625 per share, implying a 4.6% annualized yield.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy” and an average price target of $48.75. However, two company insiders recently sold shares, and the stock was trading down 1.6% at $40.42.

Ceredex Value Advisors LLC acquired a new position in International Paper Company (NYSE:IP - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 1,205,121 shares of the basic materials company's stock, valued at approximately $45,915,000. International Paper accounts for approximately 1.3% of Ceredex Value Advisors LLC's holdings, making the stock its 9th biggest holding. Ceredex Value Advisors LLC owned about 0.23% of International Paper as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in the stock. McIlrath & Eck LLC raised its stake in 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 acquiring an additional 525 shares during the period. MV Capital Management Inc. bought a new position in shares of International Paper in the fourth quarter worth approximately $25,000. DV Equities LLC bought a new position in shares of International Paper in the fourth quarter worth approximately $29,000. Ascentis Independent Advisors purchased a new stake in shares of International Paper in the first quarter worth $28,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of International Paper in the third quarter worth $36,000. 81.95% of the stock is owned by hedge funds and other institutional investors.

International Paper Trading Down 1.6%

Shares of IP stock opened at $40.42 on Friday. 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 stock has a market capitalization of $21.41 billion, a price-to-earnings ratio of -6.20 and a beta of 0.94. International Paper Company has a 12-month low of $29.26 and a 12-month high of $50.25. The stock's 50-day moving average price is $39.10 and its 200-day moving average price is $37.90.

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. The company had revenue of $6 billion during the quarter, compared to analyst estimates 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 was down 11.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.20 earnings per share. Equities research analysts predict that International Paper Company will post 1.34 EPS for the current fiscal year.

International Paper Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a dividend yield of 4.6%. The ex-dividend date of this dividend is Friday, August 14th. International Paper's dividend payout ratio is -28.37%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on IP shares. JPMorgan Chase & Co. upgraded shares of International Paper from a "neutral" rating to an "overweight" rating and lifted their target price for the company from $51.00 to $61.00 in a research note on Tuesday, July 28th. Weiss Ratings reissued a "sell (d)" rating on shares of International Paper in a report on Friday, July 24th. Wall Street Zen upgraded International Paper from a "sell" rating to a "hold" rating in a research report on Monday. Zacks Research upgraded International Paper from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Finally, Wells Fargo & Company boosted their price target on International Paper from $42.00 to $46.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Nine analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $48.75.

Insider Buying and Selling

In related news, VP William Thomas Hamic sold 24,500 shares of the business's stock in a transaction 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 sale, the vice president owned 106,952 shares in the company, valued at approximately $4,406,422.40. The trade was a 18.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of the company's stock in a transaction 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 directly owned 34,248 shares in the company, valued at approximately $1,437,046.08. The trade was 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 corporate 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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