T. Rowe Price Investment Management Inc. Purchases 2,763,634 Shares of International Paper Company $IP

Key Points

• T. Rowe Price Investment Management Inc. significantly increased its stake in International Paper by 230.0%, acquiring nearly 3.97 million shares, which amounts to about $211.5 million.
• International Paper's recent quarterly earnings fell short of analysts' expectations, reporting $0.20 EPS versus the consensus estimate of $0.38, despite achieving $6.77 billion in revenue, which surpassed predictions.
• The company announced a quarterly dividend of $0.4625 per share, with an annualized yield of 3.9%, although it faces a high dividend payout ratio of -1,850.00%.

T. Rowe Price Investment Management Inc. boosted its holdings in shares of International Paper Company (NYSE:IP - Free Report) by 230.0% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 3,965,192 shares of the basic materials company's stock after acquiring an additional 2,763,634 shares during the quarter. T. Rowe Price Investment Management Inc. owned approximately 0.75% of International Paper worth $211,543,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in IP. Zions Bancorporation National Association UT bought a new position in shares of International Paper during the 1st quarter valued at $34,000. Bernard Wealth Management Corp. acquired a new position in International Paper during the fourth quarter worth $37,000. Citizens National Bank Trust Department bought a new position in International Paper during the first quarter valued at about $37,000. Transce3nd LLC acquired a new stake in shares of International Paper in the fourth quarter worth about $38,000. Finally, Grove Bank & Trust boosted its stake in shares of International Paper by 472.0% during the 1st quarter. Grove Bank & Trust now owns 755 shares of the basic materials company's stock worth $40,000 after acquiring an additional 623 shares in the last quarter. 81.95% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research analysts recently weighed in on IP shares. Wells Fargo & Company reissued an "underweight" rating and issued a $43.00 price objective (up from $40.00) on shares of International Paper in a research note on Thursday, July 10th. UBS Group began coverage on shares of International Paper in a research note on Wednesday, June 4th. They issued a "buy" rating and a $60.00 target price on the stock. Wall Street Zen upgraded shares of International Paper from a "sell" rating to a "hold" rating in a report on Friday, June 27th. Truist Financial set a $59.00 price target on International Paper in a research report on Wednesday, May 28th. Finally, Zacks Research cut International Paper from a "hold" rating to a "strong sell" rating in a research report on Monday, August 18th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $55.46.

International Paper Price Performance

Shares of NYSE:IP traded down $0.37 during midday trading on Tuesday, reaching $49.02. 1,425,562 shares of the company's stock were exchanged, compared to its average volume of 6,412,882. The firm has a market capitalization of $25.88 billion, a PE ratio of -490.20 and a beta of 1.04. The company's 50 day simple moving average is $49.27 and its two-hundred day simple moving average is $49.68. International Paper Company has a 12 month low of $43.27 and a 12 month 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.

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

International Paper Announces Dividend

The business also recently announced 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 3.8%. The ex-dividend date is Friday, August 15th. International Paper's payout ratio is presently -1,850.00%.

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.