Handelsbanken Fonder AB Reduces Stock Holdings in International Paper Company $IP

Key Points

• Handelsbanken Fonder AB cut its International Paper stake by 83.4% in the second quarter, selling 51,801 shares and retaining 10,330 shares worth approximately $394,000. Institutional investors overall own 81.95% of the company.
• International Paper reported quarterly EPS of $0.04, beating estimates of a $0.04 loss, but revenue fell 11.3% year over year to $6 billion. The company declared a quarterly dividend of $0.4625, equivalent to a 4.6% annual yield.
• Analyst sentiment remains “Moderate Buy,” with nine Buy, four Hold and one Sell rating and an average price target of $48.75 versus the stock’s reported $40.42 opening price.

Handelsbanken Fonder AB lowered its holdings in International Paper Company (NYSE:IP - Free Report) by 83.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 10,330 shares of the basic materials company's stock after selling 51,801 shares during the quarter. Handelsbanken Fonder AB's holdings in International Paper were worth $394,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. DNB Asset Management AS lifted its holdings in shares of International Paper by 144.2% in the 4th 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 during the period. D.A. Davidson & CO. grew its holdings in International Paper by 29.6% during the first quarter. D.A. Davidson & CO. now owns 137,856 shares of the basic materials company's stock worth $4,921,000 after acquiring an additional 31,518 shares during the period. Bellwether Advisors LLC purchased a new position in International Paper during the first quarter valued at approximately $2,615,000. Norges Bank purchased a new position in International Paper during the fourth quarter valued at approximately $250,093,000. Finally, Franklin Resources Inc. lifted its holdings in International Paper by 81.6% in the fourth quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock valued at $584,270,000 after acquiring an additional 6,663,986 shares during the period. Hedge funds and other institutional investors own 81.95% of the company's stock.

Insiders Place Their Bets

In other International Paper news, CAO Holly G. Goughnour sold 3,500 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total transaction of $146,860.00. Following the completion of the transaction, the chief accounting officer directly owned 34,248 shares in the company, valued at approximately $1,437,046.08. This represents a 9.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 transaction of $1,009,400.00. Following the completion of the sale, the vice president owned 106,952 shares in the company, valued at approximately $4,406,422.40. This trade represents a 18.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.21% of the company's stock.

International Paper Stock Down 1.6%

Shares of IP opened at $40.42 on Friday. 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 Company has a 12 month low of $29.26 and a 12 month high of $50.25. The stock's 50 day moving average is $39.10 and its two-hundred day moving average is $37.90. The firm has a market cap of $21.41 billion, a P/E ratio of -6.20 and a beta of 0.94.

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

International Paper Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be issued a $0.4625 dividend. This represents a $1.85 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend is Friday, August 14th. International Paper's payout ratio is presently -28.37%.

Analyst Upgrades and Downgrades

IP has been the topic of a number of analyst reports. Loop Capital set a $61.00 price objective on shares of International Paper in a research note on Tuesday, July 28th. Citigroup boosted their target price on shares of International Paper from $43.00 to $48.00 and gave the company a "buy" rating in a research note on Friday, July 31st. UBS Group increased their price target on shares of International Paper from $40.00 to $47.00 and gave the stock a "neutral" rating in a report on Friday, July 31st. JPMorgan Chase & Co. upgraded shares of International Paper from a "neutral" rating to an "overweight" rating and raised their price target for the company from $51.00 to $61.00 in a research report on Tuesday, July 28th. Finally, Bank of America cut shares of International Paper from a "buy" rating to a "neutral" rating and set a $41.00 price objective for the company. in a report on Tuesday, July 14th. 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 currently has an average rating of "Moderate Buy" and an average target price of $48.75.

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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