International Paper Company $IP Shares Bought by Franklin Resources Inc.

Key Points

• Franklin Resources significantly increased its stake in International Paper, boosting holdings by 81.6% in the fourth quarter to 14.8 million shares valued at about $584.3 million.
• Several other institutional investors also added to their positions, and hedge funds and other institutions now own 81.95% of the company’s stock.
• International Paper reported weaker-than-expected quarterly results, with EPS of $0.15 versus $0.18 expected and revenue of $5.97 billion versus $6.02 billion expected, though it also announced a quarterly dividend of $0.4625 per share.

Franklin Resources Inc. grew its holdings in International Paper Company (NYSE:IP - Free Report) by 81.6% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 14,832,952 shares of the basic materials company's stock after buying an additional 6,663,986 shares during the quarter. Franklin Resources Inc. owned 2.81% of International Paper worth $584,270,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in IP. Capital International Investors boosted its holdings in International Paper by 51.4% in the 3rd quarter. Capital International Investors now owns 48,990,719 shares of the basic materials company's stock worth $2,272,966,000 after buying an additional 16,622,062 shares during the last quarter. Norges Bank acquired a new stake in shares of International Paper in the fourth quarter worth approximately $250,093,000. Capital Research Global Investors increased its position in shares of International Paper by 7.5% during the third quarter. Capital Research Global Investors now owns 54,330,790 shares of the basic materials company's stock worth $2,520,945,000 after purchasing an additional 3,768,772 shares in the last quarter. Invesco Ltd. lifted its holdings in International Paper by 11.8% in the 3rd quarter. Invesco Ltd. now owns 9,121,170 shares of the basic materials company's stock valued at $423,222,000 after purchasing an additional 960,240 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its stake in International Paper by 19.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 5,039,300 shares of the basic materials company's stock worth $233,824,000 after purchasing an additional 809,727 shares during the last quarter. Hedge funds and other institutional investors own 81.95% of the company's stock.

Insider Buying and Selling

In other news, Director Anders Gustafsson purchased 13,217 shares of the firm's stock in a transaction on Thursday, March 12th. The shares were bought at an average cost of $37.83 per share, for a total transaction of $499,999.11. Following the completion of the purchase, the director directly owned 26,092 shares of the company's stock, valued at approximately $987,060.36. This trade represents a 102.66% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Scott Tozier acquired 10,000 shares of the company's stock in a transaction dated Friday, May 1st. The stock was purchased at an average cost of $31.30 per share, with a total value of $313,000.00. Following the completion of the purchase, the director directly owned 10,025 shares of the company's stock, valued at approximately $313,782.50. This represents a 40,000.00% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders acquired 36,092 shares of company stock worth $1,313,064. 0.21% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

IP has been the topic of several research reports. Seaport Research Partners raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price target on the stock in a research note on Friday, May 1st. Stifel Nicolaus decreased their target price on shares of International Paper from $51.80 to $50.70 and set a "buy" rating on the stock in a research note on Monday, February 9th. Citigroup dropped their price target on International Paper from $44.00 to $36.00 and set a "buy" rating for the company in a research report on Friday, May 1st. Zacks Research downgraded International Paper from a "hold" rating to a "strong sell" rating in a research report on Thursday, April 23rd. Finally, UBS Group dropped their target price 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 analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $43.73.

International Paper Price Performance

NYSE:IP opened at $32.83 on Tuesday. International Paper Company has a 52 week low of $29.26 and a 52 week high of $56.13. The stock's fifty day moving average is $33.69 and its two-hundred day moving average is $38.36. The company has a market capitalization of $17.39 billion, a P/E ratio of -5.16 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.

International Paper (NYSE:IP - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.18 by ($0.03). International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.The business had revenue of $5.97 billion for the quarter, compared to analyst estimates of $6.02 billion. During the same period in the previous year, the business posted $0.17 earnings per share. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. Equities analysts expect that International Paper Company will post 1.38 EPS for the current year.

International Paper Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be issued a $0.4625 dividend. This represents a $1.85 annualized dividend and a yield of 5.6%. The ex-dividend date is Friday, May 22nd. International Paper's dividend payout ratio (DPR) is -29.09%.

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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