Clearbridge Investments LLC Decreases Stock Holdings in International Paper Company $IP

Key Points

• Clearbridge Investments reduced its stake in International Paper by 5.8% in the fourth quarter, selling 149,556 shares and ending with 2.44 million shares worth about $96.1 million.
• International Paper reported first-quarter earnings of $0.15 per share, missing analysts’ estimate of $0.18, while revenue of $5.97 billion also came in slightly below expectations.
• The company declared a quarterly dividend of $0.4625 per share, equal to an annualized yield of about 5.6%, even as the stock traded around $32.83 and fell 2.3% on the day.

Clearbridge Investments LLC decreased its holdings in shares of International Paper Company (NYSE:IP - Free Report) by 5.8% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,438,968 shares of the basic materials company's stock after selling 149,556 shares during the period. Clearbridge Investments LLC owned about 0.46% of International Paper worth $96,071,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently made changes to their positions in IP. Dynamic Technology Lab Private Ltd purchased a new position in shares of International Paper during the 1st quarter valued at approximately $249,000. Intech Investment Management LLC lifted its position in shares of International Paper by 100.5% during the 1st quarter. Intech Investment Management LLC now owns 32,025 shares of the basic materials company's stock valued at $1,709,000 after buying an additional 16,055 shares in the last quarter. Cresset Asset Management LLC raised its stake in International Paper by 20.8% in the 2nd quarter. Cresset Asset Management LLC now owns 17,345 shares of the basic materials company's stock valued at $812,000 after purchasing an additional 2,981 shares during the last quarter. Jump Financial LLC raised its stake in International Paper by 280.9% in the 2nd quarter. Jump Financial LLC now owns 38,092 shares of the basic materials company's stock valued at $1,784,000 after purchasing an additional 28,092 shares during the last quarter. Finally, Cerity Partners LLC raised its stake in International Paper by 8.0% in the 2nd quarter. Cerity Partners LLC now owns 33,749 shares of the basic materials company's stock valued at $1,580,000 after purchasing an additional 2,493 shares during the last quarter. Hedge funds and other institutional investors own 81.95% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on IP. JPMorgan Chase & Co. reduced their price objective on International Paper from $46.00 to $43.00 and set a "neutral" rating for the company in a research note on Friday, May 1st. Stifel Nicolaus reduced their price objective on International Paper from $51.80 to $50.70 and set a "buy" rating for the company in a research note on Monday, February 9th. Deutsche Bank Aktiengesellschaft began coverage on International Paper in a research note on Wednesday, April 1st. They issued a "hold" rating and a $38.00 price objective for the company. Seaport Research Partners raised International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price objective for the company in a research note on Friday, May 1st. Finally, Wells Fargo & Company raised International Paper from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $38.00 to $39.00 in a research note on Monday, May 4th. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, International Paper has an average rating of "Moderate Buy" and a consensus price target of $43.73.

International Paper Stock Down 2.3%

Shares of IP opened at $32.83 on Tuesday. International Paper Company has a 52-week low of $29.26 and a 52-week high of $56.13. The company has a market capitalization of $17.39 billion, a PE ratio of -5.16 and a beta of 0.96. The stock has a fifty day simple moving average of $33.69 and a two-hundred day simple moving average of $38.36. The company has a quick ratio of 0.94, a current ratio of 1.21 and a debt-to-equity ratio of 0.55.

International Paper (NYSE:IP - Get Free Report) last issued its earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share (EPS) 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 during the quarter, compared to analyst estimates of $6.02 billion. During the same period last year, the business earned $0.17 earnings per share. The firm's revenue was up 13.4% compared to the same quarter last year. As a group, equities analysts forecast that International Paper Company will post 1.38 EPS for the current year.

International Paper Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be paid a $0.4625 dividend. 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 (DPR) is -29.09%.

Insiders Place Their Bets

In related news, Director Scott Tozier bought 10,000 shares of the business's stock in a transaction on Friday, May 1st. The stock was acquired at an average cost of $31.30 per share, with a total value of $313,000.00. Following the purchase, the director directly owned 10,025 shares of the company's stock, valued at $313,782.50. The trade was a 40,000.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Anders Gustafsson bought 13,217 shares of the business's stock in a transaction on Thursday, March 12th. The stock was bought at an average cost of $37.83 per share, with a total value of $499,999.11. Following the completion of the purchase, the director directly owned 26,092 shares in the company, valued at approximately $987,060.36. The trade was a 102.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired a total of 36,092 shares of company stock valued at $1,313,064 over the last ninety days. Corporate insiders own 0.21% of the company's stock.

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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