Jefferies Financial Group Inc. Takes Position in International Paper Company $IP

Key Points

• Jefferies Financial Group opened a new position in International Paper, buying 184,515 shares worth about $7.27 million in the fourth quarter.
• Insider buying has been notable, with directors Scott Tozier and Anders Gustafsson purchasing shares recently; insiders have bought 36,092 shares valued at about $1.31 million over the past three months.
• International Paper missed earnings expectations in its latest quarter, but it still posted 13.4% year-over-year revenue growth and announced a quarterly dividend of $0.4625 per share, implying a 5.9% yield.

Jefferies Financial Group Inc. bought a new stake in International Paper Company (NYSE:IP - Free Report) during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor bought 184,515 shares of the basic materials company's stock, valued at approximately $7,268,000.

A number of other institutional investors and hedge funds also recently modified their holdings of IP. McIlrath & Eck LLC raised its holdings in International Paper by 452.6% in the 4th quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock valued at $25,000 after acquiring an additional 525 shares during the period. Sound Income Strategies LLC raised its holdings in International Paper by 94.0% in the 4th quarter. Sound Income Strategies LLC now owns 710 shares of the basic materials company's stock valued at $31,000 after acquiring an additional 344 shares during the period. Kelleher Financial Advisors bought a new position in International Paper in the 3rd quarter valued at about $36,000. Laurel Wealth Advisors LLC bought a new position in International Paper in the 4th quarter valued at about $37,000. Finally, Atlantic Union Bankshares Corp bought a new position in International Paper in the 3rd quarter valued at about $49,000. 81.95% of the stock is owned by institutional investors.

Insiders Place Their Bets

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

Analyst Ratings Changes

Several research analysts have weighed in on IP shares. Zacks Research cut shares of International Paper from a "hold" rating to a "strong sell" rating in a report on Thursday, April 23rd. Wells Fargo & Company raised shares of International Paper from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $38.00 to $39.00 in a report on Monday, May 4th. Seaport Research Partners raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 target price on the stock in a report on Friday, May 1st. Weiss Ratings cut shares of International Paper from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, April 27th. Finally, Stifel Nicolaus lowered their target price on shares of International Paper from $51.80 to $50.70 and set a "buy" rating on the stock in a report on Monday, February 9th. Nine analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $43.73.

International Paper Stock Performance

Shares of International Paper stock opened at $31.28 on Tuesday. International Paper Company has a fifty-two week low of $29.26 and a fifty-two week high of $56.13. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.21 and a quick ratio of 0.94. The firm has a market capitalization of $16.56 billion, a P/E ratio of -4.92 and a beta of 0.93. The company's 50 day moving average price is $34.25 and its two-hundred day moving average price is $38.65.

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

International Paper Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be paid a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date of this dividend is Friday, May 22nd. International Paper's dividend payout ratio (DPR) is currently -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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