Charles Schwab Investment Management Inc. Boosts Stake in International Paper Company (NYSE:IP)

Key Points

• Charles Schwab Investment Management Inc. increased its holdings in International Paper by 39.6%, now owning approximately 4.97 million shares valued at $265 million.
• International Paper's shares opened at $47.54 with a market capitalization of $25.10 billion and a negative net margin of 0.12% despite a revenue increase of 42.9% year-over-year.
• The company announced a quarterly dividend of $0.4625 per share, offering a yield of 3.9%, with an ex-dividend date set for August 15th.

Charles Schwab Investment Management Inc. lifted its position in International Paper Company (NYSE:IP - Free Report) by 39.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 4,974,271 shares of the basic materials company's stock after purchasing an additional 1,411,396 shares during the quarter. Charles Schwab Investment Management Inc. owned about 0.94% of International Paper worth $265,377,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Greenleaf Trust lifted its stake in International Paper by 2.5% in the 1st quarter. Greenleaf Trust now owns 9,244 shares of the basic materials company's stock valued at $493,000 after purchasing an additional 224 shares during the last quarter. Sequoia Financial Advisors LLC boosted its stake in International Paper by 2.6% during the 1st quarter. Sequoia Financial Advisors LLC now owns 8,994 shares of the basic materials company's stock valued at $480,000 after purchasing an additional 231 shares during the last quarter. Csenge Advisory Group grew its stake in International Paper by 1.5% in the 1st quarter. Csenge Advisory Group now owns 16,252 shares of the basic materials company's stock valued at $867,000 after purchasing an additional 234 shares during the period. Capital Investment Advisors LLC increased its stake in shares of International Paper by 6.0% in the first quarter. Capital Investment Advisors LLC now owns 4,176 shares of the basic materials company's stock worth $223,000 after purchasing an additional 235 shares in the last quarter. Finally, Wimmer Associates 1 LLC increased its holdings in shares of International Paper by 3.8% in the fourth quarter. Wimmer Associates 1 LLC now owns 7,450 shares of the basic materials company's stock worth $401,000 after purchasing an additional 270 shares during the period. 81.95% of the stock is currently owned by hedge funds and other institutional investors.

International Paper Stock Down 0.9%

International Paper stock traded down $0.43 during mid-day trading on Monday, hitting $47.12. The company had a trading volume of 3,116,203 shares, compared to its average volume of 6,614,517. The company has a current ratio of 1.33, a quick ratio of 0.96 and a debt-to-equity ratio of 0.52. International Paper Company has a 12 month low of $43.27 and a 12 month high of $60.36. The company has a market capitalization of $24.88 billion, a PE ratio of -471.20, a price-to-earnings-growth ratio of 0.57 and a beta of 1.04. The stock's 50 day moving average price is $49.11 and its two-hundred day moving average price is $50.37.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.18). International Paper had a negative net margin of 0.12% and a positive return on equity of 2.63%. The firm had revenue of $6.77 billion during the quarter, compared to analysts' expectations of $6.64 billion. During the same quarter in the previous year, the firm posted $0.55 EPS. The firm's revenue for the quarter was up 42.9% on a year-over-year basis. As a group, sell-side analysts anticipate that International Paper Company will post 2.77 earnings per share for the current fiscal year.

International Paper Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Friday, August 15th will be given a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Friday, August 15th. International Paper's dividend payout ratio (DPR) is currently -1,850.00%.

Analyst Upgrades and Downgrades

IP has been the topic of a number of analyst reports. Wells Fargo & Company reiterated an "underweight" rating and issued a $43.00 price target (up previously from $40.00) on shares of International Paper in a research note on Thursday, July 10th. UBS Group started coverage on International Paper in a research note on Wednesday, June 4th. They issued a "buy" rating and a $60.00 price target for the company. Truist Financial set a $59.00 target price on International Paper in a research note on Wednesday, May 28th. Wall Street Zen raised International Paper from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Finally, JPMorgan Chase & Co. downgraded shares of International Paper from an "overweight" rating to a "neutral" rating and cut their target price for the company from $55.00 to $54.00 in a research note on Tuesday, August 5th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $55.03.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.