PNC Financial Services Group Inc. Cuts Holdings in International Paper Company (NYSE:IP)

Key Points

• PNC Financial Services Group Inc. reduced its stake in International Paper by 9.7%, holding 159,801 shares after selling 17,200 shares, valued at approximately $8.5 million.
• International Paper reported disappointing earnings with an EPS of $0.20, significantly below the expected $0.38, despite a revenue increase of 42.9% year-over-year.
• The company declared a quarterly dividend of $0.4625, translating to an annualized dividend yield of 4.0%, though it has an unusually high payout ratio of -1,850.00%.

PNC Financial Services Group Inc. reduced its position in shares of International Paper Company (NYSE:IP - Free Report) by 9.7% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 159,801 shares of the basic materials company's stock after selling 17,200 shares during the quarter. PNC Financial Services Group Inc.'s holdings in International Paper were worth $8,525,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently modified their holdings of the business. Capital Research Global Investors increased its stake in shares of International Paper by 68.8% in the fourth quarter. Capital Research Global Investors now owns 29,904,546 shares of the basic materials company's stock worth $1,609,462,000 after purchasing an additional 12,191,361 shares in the last quarter. Bank of New York Mellon Corp increased its position in International Paper by 19.4% during the first quarter. Bank of New York Mellon Corp now owns 17,145,485 shares of the basic materials company's stock valued at $914,712,000 after acquiring an additional 2,782,042 shares during the last quarter. Bessemer Group Inc. raised its holdings in shares of International Paper by 3,304.9% in the first quarter. Bessemer Group Inc. now owns 2,547,255 shares of the basic materials company's stock worth $135,897,000 after buying an additional 2,472,443 shares during the period. Alyeska Investment Group L.P. increased its stake in International Paper by 134.8% in the 4th quarter. Alyeska Investment Group L.P. now owns 3,948,752 shares of the basic materials company's stock worth $212,522,000 after buying an additional 2,266,762 shares during the period. Finally, Slate Path Capital LP purchased a new stake in shares of International Paper in the fourth quarter valued at approximately $102,796,000. 81.95% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on IP shares. Wall Street Zen upgraded shares of International Paper from a "sell" rating to a "hold" rating in a research note on Friday, June 27th. UBS Group started coverage on shares of International Paper in a report on Wednesday, June 4th. They issued a "buy" rating and a $60.00 price target for the company. 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 report on Thursday, July 10th. Truist Financial set a $59.00 target price on shares of International Paper in a report on Wednesday, May 28th. Finally, JPMorgan Chase & Co. lowered shares of International Paper from an "overweight" rating to a "neutral" rating and decreased their price target for the company from $55.00 to $54.00 in a research note on Tuesday. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $55.03.

International Paper Stock Performance

International Paper stock traded up $1.82 during trading hours on Thursday, reaching $48.15. 3,358,795 shares of the stock were exchanged, compared to its average volume of 5,396,296. International Paper Company has a 52-week low of $43.27 and a 52-week high of $60.36. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.96 and a current ratio of 1.33. The firm's 50 day moving average is $49.11 and its 200 day moving average is $50.61. The stock has a market cap of $25.42 billion, a P/E ratio of -481.50, a P/E/G ratio of 0.54 and a beta of 1.04.

International Paper (NYSE:IP - Get Free Report) last issued its 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). The business had revenue of $6.77 billion for the quarter, compared to analysts' expectations of $6.64 billion. International Paper had a positive return on equity of 2.63% and a negative net margin of 0.12%. The business's quarterly revenue was up 42.9% on a year-over-year basis. During the same period last year, the company posted $0.55 earnings per share. Analysts predict that International Paper Company will post 2.77 EPS for the current fiscal year.

International Paper Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Friday, August 15th will be paid a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date of this dividend is Friday, August 15th. International Paper's dividend payout ratio (DPR) is -1,850.00%.

International Paper Profile

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.