Van ECK Associates Corp Makes New Investment in International Paper Company $IP

Key Points

• Van ECK Associates acquired 1.35 million International Paper shares valued at approximately $51.4 million, joining several major institutions increasing or initiating positions. Institutional investors now own 81.95% of the company.
• International Paper reported quarterly EPS of $0.04, beating estimates for a $0.04 loss, but revenue fell 11.3% year over year to $6 billion and the company remained unprofitable.
• The company declared a quarterly dividend of $0.4625 per share, equivalent to an annualized $1.85 payout and a 4.7% yield. Analysts maintain a consensus “Moderate Buy” rating with a $48.75 price target.

Van ECK Associates Corp acquired a new stake in International Paper Company (NYSE:IP - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 1,348,956 shares of the basic materials company's stock, valued at approximately $51,395,000. Van ECK Associates Corp owned 0.25% of International Paper as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also made changes to their positions in IP. BlackRock Inc. purchased a new position in shares of International Paper during the second quarter worth about $1,940,896,000. Bank of New York Mellon Corp purchased a new stake in International Paper during the 2nd quarter valued at approximately $689,498,000. Capital International Investors lifted its position in International Paper by 29.4% during the 4th quarter. Capital International Investors now owns 63,413,335 shares of the basic materials company's stock worth $2,498,013,000 after acquiring an additional 14,422,616 shares during the period. Atlas FRM LLC acquired a new stake in International Paper during the 2nd quarter worth approximately $374,904,000. Finally, Franklin Resources Inc. grew its stake in shares of International Paper by 81.6% in the 4th quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock valued at $584,270,000 after purchasing an additional 6,663,986 shares during the last quarter. 81.95% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at International Paper

In other news, VP William Thomas Hamic sold 24,500 shares of International Paper stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $41.20, for a total transaction of $1,009,400.00. Following the completion of the sale, the vice president directly owned 106,952 shares in the company, valued at $4,406,422.40. The trade was a 18.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Holly G. Goughnour sold 3,500 shares of the business'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 represents a 9.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.21% of the company's stock.

International Paper Stock Performance

International Paper stock opened at $39.34 on Friday. International Paper Company has a fifty-two week low of $29.26 and a fifty-two week high of $50.25. The company has a market capitalization of $20.83 billion, a price-to-earnings ratio of -6.03 and a beta of 0.94. The stock has a fifty day moving average of $39.62 and a two-hundred day moving average of $37.81. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.84 and a current ratio of 1.10.

International Paper (NYSE:IP - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of ($0.04) by $0.08. The business had revenue of $6 billion for the quarter, compared to analyst estimates of $6.19 billion. International Paper had a negative return on equity of 1.09% and a negative net margin of 14.20%.The business's revenue for the quarter was down 11.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.20 earnings per share. On average, analysts anticipate that International Paper Company will post 1.34 EPS for the current fiscal year.

International Paper Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend is Friday, August 14th. International Paper's dividend payout ratio (DPR) is currently -28.37%.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on IP. Loop Capital set a $61.00 target price on shares of International Paper in a research note on Tuesday, July 28th. Weiss Ratings upgraded shares of International Paper from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, August 21st. Wall Street Zen downgraded shares of International Paper from a "hold" rating to a "sell" rating in a research report on Tuesday, August 25th. JPMorgan Chase & Co. raised International Paper from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $51.00 to $61.00 in a report on Tuesday, July 28th. Finally, UBS Group boosted their target price on International Paper from $40.00 to $47.00 and gave the stock a "neutral" rating in a research report on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $48.75.

About International Paper

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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