Uncommon Cents Investing Inc Buys New Position in International Paper Company $IP

Key Points

• Uncommon Cents Investing initiated a position in International Paper during the third quarter, purchasing 86,179 shares valued at approximately $2.86 million. Institutional investors and hedge funds collectively own 81.95% of the company.
• Analysts maintain a generally positive view, with 10 Buy, three Hold, and one Sell rating, producing a consensus rating of Moderate Buy and an average price target of $46.90.
• International Paper reported quarterly EPS of $0.04, exceeding expectations, but revenue declined 11.3% year over year to $6 billion. The company also announced a quarterly dividend of $0.4625 per share, representing a 5.5% annualized yield.

Uncommon Cents Investing Inc purchased a new position in International Paper Company (NYSE:IP - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 86,179 shares of the basic materials company's stock, valued at approximately $2,859,000.

Other large investors have also made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of International Paper in the 2nd quarter worth $1,940,896,000. State Street Corp increased its position in International Paper by 7.1% during the 2nd quarter. State Street Corp now owns 32,999,909 shares of the basic materials company's stock valued at $1,257,297,000 after buying an additional 2,189,597 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in International Paper during the 2nd quarter valued at about $689,498,000. Atlas FRM LLC purchased a new stake in International Paper in the second quarter valued at about $374,904,000. Finally, Hill City Capital LP purchased a new stake in International Paper in the second quarter valued at about $194,310,000. 81.95% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on IP. Wells Fargo & Company dropped their price target on International Paper from $46.00 to $42.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 7th. Bank of America raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $46.00 price objective for the company in a research report on Friday, September 11th. Loop Capital set a $61.00 price objective on shares of International Paper in a research report on Tuesday, July 28th. Argus reiterated a "buy" rating and issued a $45.00 target price on shares of International Paper in a research note on Thursday, September 24th. Finally, Royal Bank Of Canada boosted their target price on shares of International Paper from $48.00 to $52.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Ten investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $46.90.

International Paper Price Performance

NYSE IP opened at $33.73 on Wednesday. The company has a market cap of $17.86 billion, a price-to-earnings ratio of -5.17, a PEG ratio of 4.44 and a beta of 0.93. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.10 and a quick ratio of 0.84. The stock's fifty day moving average price is $35.92 and its 200 day moving average price is $35.99. International Paper Company has a 1 year low of $29.26 and a 1 year high of $50.25.

International Paper (NYSE:IP - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.08. The company had revenue of $6 billion during the quarter, compared to analysts' expectations of $6.19 billion. International Paper had a negative return on equity of 1.09% and a negative net margin of 14.20%. The firm's revenue was down 11.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.20 EPS. As a group, equities research analysts forecast that International Paper Company will post 1.27 earnings per share for the current year.

International Paper Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 16th will be given a $0.4625 dividend. The ex-dividend date is Monday, November 16th. This represents a $1.85 dividend on an annualized basis and a yield of 5.5%. International Paper's dividend payout ratio is currently -28.37%.

Insider Buying and Selling

In other International Paper news, CAO Holly G. Goughnour sold 3,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total transaction of $146,860.00. Following the completion of the transaction, the chief accounting officer directly owned 34,248 shares of the company's stock, valued at approximately $1,437,046.08. This trade represents a 9.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP William Hamic sold 24,500 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $41.20, for a total transaction of $1,009,400.00. Following the transaction, the vice president directly owned 106,952 shares of the company's stock, valued at $4,406,422.40. This represents a 18.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.21% of the stock is owned by corporate insiders.

About International Paper

International Paper NYSE: IP is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.

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