Diamond Hill Capital Management Inc. Sells 32,255 Shares of International Paper Company $IP

Key Points

• Diamond Hill Capital Management trimmed its stake in International Paper by 0.6% in the fourth quarter, selling 32,255 shares and ending with 5.45 million shares worth about $214.8 million.
• International Paper reported mixed quarterly results, posting EPS of $0.15 versus the $0.18 estimate and revenue of $5.97 billion versus $6.02 billion expected, though revenue still rose 13.4% year over year.
• The company declared a quarterly dividend of $0.4625 per share, implying a 5.9% annualized yield, while analysts currently rate the stock Moderate Buy with an average price target of $43.73.

Diamond Hill Capital Management Inc. lessened its stake in shares of International Paper Company (NYSE:IP - Free Report) by 0.6% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,453,523 shares of the basic materials company's stock after selling 32,255 shares during the quarter. Diamond Hill Capital Management Inc. owned approximately 1.03% of International Paper worth $214,814,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. McIlrath & Eck LLC boosted its position in shares of 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 purchasing an additional 525 shares in the last quarter. Sound Income Strategies LLC boosted its position in shares of 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. Kelleher Financial Advisors acquired a new stake in shares of International Paper in the 3rd quarter worth $36,000. Laurel Wealth Advisors LLC acquired a new stake in shares of International Paper in the 4th quarter worth $37,000. Finally, Cullen Frost Bankers Inc. boosted its position in shares of International Paper by 1,857.9% in the 4th quarter. Cullen Frost Bankers Inc. now owns 1,116 shares of the basic materials company's stock worth $44,000 after purchasing an additional 1,059 shares in the last quarter. Institutional investors and hedge funds own 81.95% of the company's stock.

Insider Buying and Selling at International Paper

In other International Paper news, Director Anders Gustafsson purchased 13,217 shares of International Paper stock in a transaction that occurred on Thursday, March 12th. The stock was acquired at an average price of $37.83 per share, with a total value of $499,999.11. Following the transaction, the director owned 26,092 shares in the company, valued at $987,060.36. This trade represents a 102.66% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Scott Tozier purchased 10,000 shares of International Paper stock in a transaction that occurred 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 transaction, the director owned 10,025 shares in the company, valued at $313,782.50. This trade represents a 40,000.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 36,092 shares of company stock valued at $1,313,064 in the last quarter. 0.21% of the stock is currently owned by company insiders.

International Paper Stock Performance

NYSE:IP opened at $31.56 on Friday. The company has a fifty day moving average of $34.48 and a 200-day moving average of $38.73. The firm has a market capitalization of $16.71 billion, a P/E ratio of -4.96 and a beta of 0.93. 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 Company has a twelve month low of $29.26 and a twelve month high of $56.13.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings data 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). The company had revenue of $5.97 billion during the quarter, compared to the consensus estimate of $6.02 billion. International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The business's revenue was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.17 EPS. As a group, sell-side analysts anticipate that International Paper Company will post 1.38 EPS for the current 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 paid a $0.4625 dividend. The ex-dividend date is Friday, May 22nd. This represents a $1.85 annualized dividend and a dividend yield of 5.9%. International Paper's payout ratio is currently -29.09%.

Analyst Ratings Changes

IP has been the subject of a number of recent analyst reports. Zacks Research cut International Paper from a "hold" rating to a "strong sell" rating in a research report on Thursday, April 23rd. Wells Fargo & Company raised International Paper from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $38.00 to $39.00 in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft started coverage on International Paper in a research report on Wednesday, April 1st. They issued a "hold" rating and a $38.00 price objective for the company. Stifel Nicolaus reduced their target price 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. Finally, JPMorgan Chase & Co. reduced their target price 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. Nine analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, International Paper 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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