EFG International AG Takes Position in International Paper Company $IP

Key Points

• EFG International AG acquired 107,626 shares of International Paper in the second quarter, valued at approximately $4.1 million. Institutional investors and hedge funds own 81.95% of the company.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $48.75, above the stock’s reported $41.13 price.
• International Paper beat quarterly EPS expectations but reported year-over-year revenue declines and negative profitability metrics. The company also declared a quarterly dividend of $0.4625 per share, implying a 4.5% annualized yield.

EFG International AG acquired a new stake in International Paper Company (NYSE:IP - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 107,626 shares of the basic materials company's stock, valued at approximately $4,101,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. DNB Asset Management AS increased its position in shares of International Paper by 144.2% in the fourth quarter. DNB Asset Management AS now owns 258,920 shares of the basic materials company's stock valued at $10,199,000 after buying an additional 152,907 shares in the last quarter. D.A. Davidson & CO. boosted its position in shares of International Paper by 29.6% in the 1st quarter. D.A. Davidson & CO. now owns 137,856 shares of the basic materials company's stock worth $4,921,000 after buying an additional 31,518 shares in the last quarter. Bellwether Advisors LLC acquired a new stake in International Paper in the 1st quarter valued at about $2,615,000. Norges Bank acquired a new stake in International Paper in the 4th quarter valued at about $250,093,000. Finally, Deutsche Bank AG purchased a new position in International Paper during the 2nd quarter valued at about $77,604,000. 81.95% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, CAO Holly G. Goughnour sold 3,500 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total value of $146,860.00. Following the transaction, the chief accounting officer directly owned 34,248 shares in the company, valued at $1,437,046.08. This trade represents a 9.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP William Thomas Hamic sold 24,500 shares of International Paper stock in a transaction dated 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 completion of the transaction, the vice president directly owned 106,952 shares in the company, valued at $4,406,422.40. This represents a 18.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.21% of the company's stock.

Analyst Ratings Changes

A number of brokerages have issued reports on IP. Seaport Research Partners restated a "buy" rating and set a $46.00 target price on shares of International Paper in a research report on Wednesday, August 12th. Weiss Ratings raised shares of International Paper from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday. Wells Fargo & Company lifted their price objective on International Paper from $42.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Truist Financial reaffirmed a "buy" rating and issued a $49.00 target price (up from $46.00) on shares of International Paper in a research note on Friday, July 31st. Finally, Loop Capital set a $61.00 target price on International Paper in a report on Tuesday, July 28th. 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's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $48.75.

International Paper Stock Performance

International Paper stock opened at $41.13 on Wednesday. The stock has a fifty day moving average price of $39.40 and a 200 day moving average price of $37.87. International Paper Company has a 52 week low of $29.26 and a 52 week high of $50.25. The firm has a market capitalization of $21.78 billion, a P/E ratio of -6.31 and a beta of 0.94. The company has a current ratio of 1.10, a quick ratio of 0.84 and a debt-to-equity ratio of 0.57.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.08. The company had revenue of $6 billion during the quarter, compared to analysts' expectations of $6.19 billion. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The business's quarterly revenue was down 11.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.20 EPS. Equities research analysts anticipate that International Paper Company will post 1.34 earnings per share for the current year.

International Paper Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.4625 per share. The ex-dividend date is Friday, August 14th. This represents a $1.85 annualized dividend and a yield of 4.5%. International Paper's dividend payout ratio is currently -28.37%.

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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