CIBC Asset Management Inc Raises Stock Position in International Paper Company $IP

Key Points

• CIBC Asset Management increased its stake in International Paper by 69.6% in the fourth quarter, bringing its holdings to 123,692 shares worth about $4.87 million.
• International Paper reported Q1 earnings of $0.15 per share, missing analyst expectations of $0.18, while revenue came in slightly below estimates at $5.97 billion.
• The company declared a quarterly dividend of $0.4625 per share, equal to an annualized yield of 5.5%, and analysts currently rate the stock a Moderate Buy with an average price target of $43.73.

CIBC Asset Management Inc raised its holdings in shares of International Paper Company (NYSE:IP - Free Report) by 69.6% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 123,692 shares of the basic materials company's stock after buying an additional 50,742 shares during the quarter. CIBC Asset Management Inc's holdings in International Paper were worth $4,872,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of IP. Capital International Investors grew its holdings in shares of International Paper by 51.4% during the third quarter. Capital International Investors now owns 48,990,719 shares of the basic materials company's stock worth $2,272,966,000 after buying an additional 16,622,062 shares in the last quarter. Norges Bank purchased a new stake in shares of International Paper during the fourth quarter worth $250,093,000. Capital Research Global Investors grew its holdings in shares of International Paper by 7.5% during the third quarter. Capital Research Global Investors now owns 54,330,790 shares of the basic materials company's stock worth $2,520,945,000 after buying an additional 3,768,772 shares in the last quarter. Invesco Ltd. grew its holdings in shares of International Paper by 11.8% during the third quarter. Invesco Ltd. now owns 9,121,170 shares of the basic materials company's stock worth $423,222,000 after buying an additional 960,240 shares in the last quarter. Finally, BNP Paribas Financial Markets grew its holdings in shares of International Paper by 19.1% during the third quarter. BNP Paribas Financial Markets now owns 5,039,300 shares of the basic materials company's stock worth $233,824,000 after buying an additional 809,727 shares in the last quarter. Hedge funds and other institutional investors own 81.95% of the company's stock.

International Paper Trading Down 0.7%

NYSE IP opened at $33.66 on Friday. The firm's 50-day moving average is $33.76 and its two-hundred day moving average is $38.37. International Paper Company has a 12 month low of $29.26 and a 12 month high of $56.13. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.21 and a quick ratio of 0.94. The stock has a market capitalization of $17.82 billion, a P/E ratio of -5.29 and a beta of 0.96.

International Paper (NYSE:IP - Get Free Report) last posted its earnings results on Thursday, April 30th. The basic materials company reported $0.15 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.03). International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The company had revenue of $5.97 billion during the quarter, compared to analyst estimates of $6.02 billion. During the same period in the previous year, the company earned $0.17 EPS. The company's quarterly revenue was up 13.4% compared to the same quarter last year. On average, sell-side analysts anticipate that International Paper Company will post 1.38 earnings per share for the current year.

International Paper Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be issued a $0.4625 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.85 annualized dividend and a yield of 5.5%. International Paper's dividend payout ratio (DPR) is -29.09%.

Insider Activity at International Paper

In related news, Director Anders Gustafsson acquired 13,217 shares of the business's stock in a transaction 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 acquisition, the director 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 acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Scott Tozier acquired 10,000 shares of the business's stock in a transaction on 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 acquisition, the director owned 10,025 shares of the company's stock, valued at $313,782.50. This 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 purchased 36,092 shares of company stock worth $1,313,064. 0.21% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on IP shares. BNP Paribas Exane dropped their target price on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a report on Wednesday, March 25th. Citigroup lowered their price target on shares of International Paper from $44.00 to $36.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft initiated coverage on shares of International Paper in a research report on Wednesday, April 1st. They set a "hold" rating and a $38.00 price target on the stock. Seaport Research Partners raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price target on the stock in a research report on Friday, May 1st. Finally, Truist Financial lowered their price target on shares of International Paper from $48.00 to $44.00 and set a "buy" rating on the stock in a research report on Wednesday, April 15th. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $43.73.

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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