Hill City Capital LP Invests $194.31 Million in International Paper Company $IP

Key Points

• Hill City Capital LP acquired 5.1 million shares of International Paper in the second quarter, valued at approximately $194.31 million. The position represents about 0.96% of IP and 5% of the firm’s portfolio, while institutional investors collectively own 81.95% of the stock.
• International Paper reported quarterly EPS of $0.04, beating the $0.04-per-share loss analysts expected, though revenue fell 11.3% year over year to $6 billion. The company also declared a quarterly dividend of $0.4625 per share, equivalent to a 4.5% annualized yield.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy” and an average price target of $48.75. Several firms recently raised their targets, including RBC to $52, while two company executives sold shares in August.

Hill City Capital LP acquired a new stake in International Paper Company (NYSE:IP - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 5,100,000 shares of the basic materials company's stock, valued at approximately $194,310,000. International Paper comprises about 5.0% of Hill City Capital LP's holdings, making the stock its 5th biggest holding. Hill City Capital LP owned approximately 0.96% of International Paper as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in IP. MCF Advisors LLC increased its holdings in International Paper by 36.7% during the fourth quarter. MCF Advisors LLC now owns 853 shares of the basic materials company's stock worth $34,000 after buying an additional 229 shares during the last quarter. Rothschild Investment LLC grew its position in shares of International Paper by 4.2% in the 4th quarter. Rothschild Investment LLC now owns 5,993 shares of the basic materials company's stock valued at $236,000 after acquiring an additional 242 shares during the period. Independent Advisor Alliance grew its position in shares of International Paper by 3.3% in the 4th quarter. Independent Advisor Alliance now owns 7,750 shares of the basic materials company's stock valued at $305,000 after acquiring an additional 244 shares during the period. Horizon Investments LLC increased its stake in shares of International Paper by 3.3% during the 4th quarter. Horizon Investments LLC now owns 8,456 shares of the basic materials company's stock worth $333,000 after purchasing an additional 267 shares during the last quarter. Finally, Stephens Inc. AR lifted its stake in International Paper by 1.3% in the 1st quarter. Stephens Inc. AR now owns 23,032 shares of the basic materials company's stock valued at $853,000 after purchasing an additional 298 shares during the last quarter. 81.95% of the stock is owned by institutional investors.

International Paper Price Performance

IP stock opened at $41.53 on Monday. The company has a quick ratio of 0.84, a current ratio of 1.10 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 firm has a market cap of $21.99 billion, a P/E ratio of -6.37 and a beta of 0.94. The company's 50-day moving average price is $39.21 and its two-hundred day moving average price is $37.90.

International Paper (NYSE:IP - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.08. The company had revenue of $6 billion during the quarter, compared to the consensus estimate of $6.19 billion. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The firm's quarterly revenue was down 11.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.20 EPS. On average, analysts anticipate that International Paper Company will post 1.34 earnings per share for the current fiscal year.

International Paper Dividend Announcement

The firm also recently announced 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 presently -28.37%.

Analyst Upgrades and Downgrades

IP has been the topic of a number of recent analyst reports. Truist Financial reissued a "buy" rating and set a $49.00 price target (up from $46.00) on shares of International Paper in a research report on Friday, July 31st. Citigroup raised their price objective on International Paper from $43.00 to $48.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Wall Street Zen upgraded International Paper from a "sell" rating to a "hold" rating in a research note on Monday, August 17th. Royal Bank Of Canada boosted their target price on International Paper from $48.00 to $52.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Finally, UBS Group increased their price target on International Paper from $40.00 to $47.00 and gave the company a "neutral" rating in a research note on Friday, July 31st. Nine investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, International Paper presently has a consensus rating of "Moderate Buy" and an average price target of $48.75.

Insider Buying and Selling at International Paper

In other news, VP William Thomas Hamic sold 24,500 shares of the business's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $41.20, for a total transaction of $1,009,400.00. Following the completion of the transaction, the vice president owned 106,952 shares of the company's stock, valued at approximately $4,406,422.40. The trade was a 18.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total value of $146,860.00. Following the sale, the chief accounting officer owned 34,248 shares of the company's stock, valued at approximately $1,437,046.08. This represents a 9.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.21% of the stock is owned by corporate insiders.

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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