Sumitomo Mitsui DS Asset Management Company Ltd Increases Stock Holdings in International Paper Company $IP

Key Points

• Sumitomo Mitsui DS Asset Management increased its International Paper stake by 49.7% in the fourth quarter, buying 32,629 more shares and bringing its total to 98,319 shares worth about $3.87 million.
• International Paper reported mixed quarterly results, posting EPS of $0.15 versus the $0.18 consensus and revenue of $5.97 billion versus expectations of $6.02 billion, though revenue was still up 13.4% year over year.
• Wall Street sentiment is mixed but generally constructive: the stock has a consensus rating of “Moderate Buy” with an average price target of $43.73, and recent insider buying by directors Scott Tozier and Anders Gustafsson signals additional confidence.

Sumitomo Mitsui DS Asset Management Company Ltd boosted its position in International Paper Company (NYSE:IP - Free Report) by 49.7% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 98,319 shares of the basic materials company's stock after purchasing an additional 32,629 shares during the quarter. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in International Paper were worth $3,873,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in IP. Capital International Investors raised its stake 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 valued at $2,272,966,000 after purchasing an additional 16,622,062 shares during the last quarter. Capital Research Global Investors raised its stake in International Paper by 7.5% in the 3rd quarter. Capital Research Global Investors now owns 54,330,790 shares of the basic materials company's stock valued at $2,520,945,000 after purchasing an additional 3,768,772 shares during the last quarter. Invesco Ltd. raised its stake 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 during the last quarter. BNP Paribas Financial Markets raised its stake in International Paper by 19.1% in the 3rd quarter. BNP Paribas Financial Markets now owns 5,039,300 shares of the basic materials company's stock valued at $233,824,000 after purchasing an additional 809,727 shares during the last quarter. Finally, SG Americas Securities LLC raised its stake in International Paper by 94.8% in the 4th quarter. SG Americas Securities LLC now owns 1,590,689 shares of the basic materials company's stock valued at $62,657,000 after purchasing an additional 774,301 shares during the last quarter. 81.95% of the stock is owned by institutional investors and hedge funds.

International Paper Stock Down 0.3%

Shares of IP opened at $33.00 on Friday. International Paper Company has a 52-week low of $29.45 and a 52-week high of $56.13. The company has a market capitalization of $17.47 billion, a PE ratio of -5.19 and a beta of 0.93. The stock has a fifty day simple moving average of $36.51 and a two-hundred day simple moving average of $39.74. 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 earnings results 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 company had revenue of $5.97 billion during the quarter, compared to analyst estimates of $6.02 billion. During the same period last year, the business earned $0.17 earnings per share. The firm's revenue was up 13.4% compared to the same quarter last year. As a group, equities analysts forecast that International Paper Company will post 1.43 EPS for the current year.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Seaport Research Partners raised International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price objective for the company in a research note on Friday, May 1st. JPMorgan Chase & Co. reduced their price objective on International Paper from $46.00 to $43.00 and set a "neutral" rating for the company in a research note on Friday, May 1st. Wells Fargo & Company raised International Paper from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $38.00 to $39.00 in a research note on Monday. Zacks Research downgraded International Paper from a "hold" rating to a "strong sell" rating in a research note on Thursday, April 23rd. Finally, Stifel Nicolaus reduced their price objective on International Paper from $51.80 to $50.70 and set a "buy" rating for the company in a research note on Monday, February 9th. Nine analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, International Paper currently has an average rating of "Moderate Buy" and a consensus price target of $43.73.

Insiders Place Their Bets

In related news, Director Scott Tozier bought 10,000 shares of the business's stock in a transaction on Friday, May 1st. The stock was acquired at an average cost of $31.30 per share, with a total value of $313,000.00. Following the purchase, the director directly owned 10,025 shares of the company's stock, valued at $313,782.50. The trade was a 40,000.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Anders Gustafsson bought 13,217 shares of the business'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 directly owned 26,092 shares in the company, valued at approximately $987,060.36. The trade was a 102.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired a total of 36,092 shares of company stock valued at $1,313,064 over the last ninety days. Corporate insiders own 0.21% of the company's stock.

International Paper 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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