Clearline Capital LP Acquires 152,275 Shares of International Paper Company $IP

Key Points

• Clearline Capital LP more than doubled its stake in International Paper during the fourth quarter, buying an additional 152,275 shares to bring its holdings to 302,686 shares worth about $11.9 million.
• International Paper reported mixed quarterly results: EPS of $0.15 missed estimates, while revenue of $5.97 billion also came in slightly below expectations despite rising 13.4% year over year.
• The company continued to return cash to shareholders with a quarterly dividend of $0.4625 per share, equal to an annualized yield of about 5.1%; analysts currently rate the stock a consensus Moderate Buy with a $43.73 price target.

Clearline Capital LP lifted its holdings in shares of International Paper Company (NYSE:IP - Free Report) by 101.2% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 302,686 shares of the basic materials company's stock after purchasing an additional 152,275 shares during the period. Clearline Capital LP owned about 0.06% of International Paper worth $11,923,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the business. McIlrath & Eck LLC increased its holdings in International Paper by 452.6% in 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 last quarter. DV Equities LLC purchased a new stake in International Paper in the 4th quarter worth about $29,000. Sound Income Strategies LLC increased its holdings 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 acquiring an additional 344 shares during the last quarter. MCF Advisors LLC increased its holdings 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 acquiring an additional 229 shares during the last quarter. Finally, Kelleher Financial Advisors purchased a new stake in International Paper in the 3rd quarter worth about $36,000. 81.95% of the stock is currently owned by institutional investors.

Insider Activity at International Paper

In other International Paper news, Director Scott Tozier acquired 10,000 shares of the business's stock in a transaction dated Friday, May 1st. The stock was bought at an average price of $31.30 per share, with a total value of $313,000.00. Following the completion of the acquisition, the director owned 10,025 shares of the company's stock, valued at $313,782.50. This trade represents a 40,000.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 0.21% of the company's stock.

International Paper Price Performance

International Paper stock opened at $36.13 on Thursday. The stock has a market cap of $19.13 billion, a price-to-earnings ratio of -5.68 and a beta of 0.96. The company has a quick ratio of 0.94, a current ratio of 1.21 and a debt-to-equity ratio of 0.55. The business has a 50-day simple moving average of $33.68 and a 200 day simple moving average of $38.22. International Paper Company has a 52 week low of $29.26 and a 52 week high of $56.13.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $5.97 billion during the quarter, compared to analysts' expectations of $6.02 billion. During the same period in the previous year, the business earned $0.17 EPS. The business's revenue was up 13.4% on a year-over-year basis. On average, research analysts forecast that International Paper Company will post 1.38 earnings per share for the current fiscal year.

International Paper Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 22nd were issued a dividend of $0.4625 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.85 annualized dividend and a dividend yield of 5.1%. International Paper's payout ratio is presently -29.09%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Weiss Ratings lowered International Paper from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, April 27th. JPMorgan Chase & Co. decreased their price objective on International Paper from $46.00 to $43.00 and set a "neutral" rating for the company in a report on Friday, May 1st. Zacks Research lowered International Paper from a "hold" rating to a "strong sell" rating in a report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft assumed coverage on International Paper in a report on Wednesday, April 1st. They issued a "hold" rating and a $38.00 price objective for the company. Finally, UBS Group decreased their price objective on International Paper from $40.00 to $32.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $43.73.

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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