Truist Financial Corp Reduces Stock Position in International Paper Company $IP

Key Points

• Truist Financial Corp cut its stake in International Paper by 67.3% in the fourth quarter, selling 61,366 shares and ending with 29,848 shares worth about $1.18 million.
• International Paper’s latest quarter missed expectations, reporting EPS of $0.15 versus $0.18 expected and revenue of $5.97 billion versus $6.02 billion estimated, even though sales were up 13.4% year over year.
• The company announced a quarterly dividend of $0.4625 per share, equal to an annualized yield of about 6.1%, while analysts currently hold a consensus rating of “Moderate Buy” with an average price target of $43.73.

Truist Financial Corp reduced its position in shares of International Paper Company (NYSE:IP - Free Report) by 67.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 29,848 shares of the basic materials company's stock after selling 61,366 shares during the period. Truist Financial Corp's holdings in International Paper were worth $1,176,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the company. Sound Income Strategies LLC lifted its holdings in International Paper by 94.0% in the fourth quarter. Sound Income Strategies LLC now owns 710 shares of the basic materials company's stock worth $31,000 after buying an additional 344 shares during the period. Kelleher Financial Advisors purchased a new stake in International Paper in the third quarter worth about $36,000. Laurel Wealth Advisors LLC purchased a new stake in International Paper in the fourth quarter worth about $37,000. Atlantic Union Bankshares Corp purchased a new stake in International Paper in the third quarter worth about $49,000. Finally, KERR FINANCIAL PLANNING Corp purchased a new position in shares of International Paper during the third quarter valued at approximately $56,000. 81.95% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, Director Scott Tozier bought 10,000 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average price of $31.30 per share, for a total transaction of $313,000.00. Following the purchase, the director owned 10,025 shares in the company, valued at $313,782.50. This represents a 40,000.00% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director Anders Gustafsson bought 13,217 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were purchased at an average price of $37.83 per share, for a total transaction of $499,999.11. Following the purchase, the director owned 26,092 shares in the company, valued at $987,060.36. This represents a 102.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have purchased 36,092 shares of company stock worth $1,313,064. 0.21% of the stock is owned by corporate insiders.

International Paper Trading Down 4.4%

Shares of International Paper stock opened at $30.21 on Friday. The company's fifty day simple moving average is $35.20 and its 200-day simple moving average is $39.12. The stock has a market capitalization of $16.00 billion, a PE ratio of -4.75 and a beta of 0.93. International Paper Company has a 1-year low of $29.45 and a 1-year 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.

International Paper (NYSE:IP - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share 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 analysts' expectations of $6.02 billion. International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.The company's revenue was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.17 EPS. As a group, equities analysts anticipate that International Paper Company will post 1.43 earnings per share for the current 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. The ex-dividend date is Friday, May 22nd. This represents a $1.85 dividend on an annualized basis and a dividend yield of 6.1%. International Paper's payout ratio is -29.09%.

Analyst Ratings Changes

IP has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft initiated coverage on shares of International Paper in a report on Wednesday, April 1st. They set a "hold" rating and a $38.00 target price for the company. BNP Paribas Exane reduced their price target on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a research report on Wednesday, March 25th. Stifel Nicolaus reduced their price target on shares of International Paper from $51.80 to $50.70 and set a "buy" rating for the company in a research report on Monday, February 9th. Zacks Research downgraded shares of International Paper from a "hold" rating to a "strong sell" rating in a research report on Thursday, April 23rd. Finally, Royal Bank Of Canada reduced their price target on shares of International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. Nine analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, International Paper currently has a consensus rating of "Moderate Buy" and an average target price of $43.73.

International Paper Company 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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