International Paper Company (NYSE:IP) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts have a “Moderate Buy” consensus on International Paper, with nine buys, four holds and one sell among 14 analysts. The average 12-month price target is approximately $48.75, above the reported $40.73 share price.
• International Paper’s latest quarterly results beat expectations on earnings, reporting $0.04 per share versus a consensus loss of $0.04, 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 4.5% yield. Recent filings also showed insider share sales, while institutional investors and hedge funds own 81.95% of the stock.

International Paper Company (NYSE:IP - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the fourteen analysts that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and nine have given a buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $48.7462.

Several equities research analysts have issued reports on IP shares. Wall Street Zen raised shares of International Paper from a "sell" rating to a "hold" rating in a research note on Monday. Wells Fargo & Company raised their target price on shares of International Paper from $42.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Citigroup lifted their target price on shares of International Paper from $43.00 to $48.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Weiss Ratings reiterated a "sell (d)" rating on shares of International Paper in a report on Friday, July 24th. Finally, Seaport Research Partners restated a "buy" rating and set a $46.00 price objective on shares of International Paper in a report on Wednesday.

International Paper Stock Performance

Shares of IP stock opened at $40.73 on Monday. The stock has a fifty day moving average price of $38.54 and a 200 day moving average price of $37.91. The stock has a market cap of $21.57 billion, a PE ratio of -6.25 and a beta of 0.94. International Paper has a 1 year low of $29.26 and a 1 year high of $50.25. 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 issued its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.08. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The business had revenue of $6 billion during the quarter, compared to analysts' expectations of $6.19 billion. During the same period last year, the company posted $0.20 EPS. The company's revenue was down 11.3% on a year-over-year basis. Sell-side analysts forecast that International Paper will post 1.34 earnings per share for the current fiscal year.

International Paper Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be paid a dividend of $0.4625 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 4.5%. International Paper's dividend payout ratio is currently -28.37%.

Insider Activity

In other news, VP William Thomas Hamic sold 24,500 shares of the 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 transaction, the vice president directly owned 106,952 shares in the company, valued at $4,406,422.40. This represents a 18.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Holly G. Goughnour sold 3,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total transaction of $146,860.00. Following the completion of the sale, the chief accounting officer directly owned 34,248 shares in the company, valued at $1,437,046.08. This represents a 9.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On International Paper

A number of hedge funds have recently made changes to their positions in IP. McIlrath & Eck LLC raised its position in shares of International Paper by 452.6% in the 4th quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock worth $25,000 after buying an additional 525 shares during the period. MV Capital Management Inc. purchased a new stake in International Paper during the fourth quarter valued at about $25,000. Aberdeen Wealth Management LLC purchased a new stake in International Paper during the second quarter valued at about $27,000. Ascentis Independent Advisors acquired a new stake in International Paper during the first quarter worth about $28,000. Finally, DV Equities LLC acquired a new stake in International Paper during the fourth quarter worth about $29,000. Institutional investors and hedge funds own 81.95% of the company's stock.

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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