International Paper Company (NYSE:IP) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• International Paper has a consensus analyst rating of “Moderate Buy” from 14 brokerages, with nine buy ratings, three holds, and two sells. The average 1-year price target is about $43.73.
• The company recently reported quarterly earnings of $0.15 per share, missing estimates, while revenue of $5.97 billion also came in slightly below expectations. Revenue still rose 13.4% year over year, but profitability remained weak.
• International Paper announced a quarterly dividend of $0.4625 per share, or $1.85 annually, which implies a yield of about 5.5%. The stock also saw insider buying, including purchases by two directors in recent months.

International Paper Company (NYSE:IP - Get Free Report) has been given a consensus rating of "Moderate Buy" by the fourteen ratings firms that are currently covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and nine have issued a buy rating on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $43.7250.

Several equities analysts have commented on the company. Weiss Ratings downgraded International Paper from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, April 27th. JPMorgan Chase & Co. lowered their price objective on International Paper from $46.00 to $43.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Royal Bank Of Canada lowered their price objective on International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. BNP Paribas Exane lowered their price objective on International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a research report on Wednesday, March 25th. Finally, UBS Group lowered their price objective on International Paper from $40.00 to $32.00 and set a "neutral" rating for the company in a research report on Monday, May 4th.

International Paper Stock Performance

Shares of NYSE IP opened at $33.81 on Wednesday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.21 and a quick ratio of 0.94. The stock's fifty day moving average price is $33.90 and its two-hundred day moving average price is $38.49. International Paper has a one year low of $29.26 and a one year high of $56.13. The firm has a market cap of $17.90 billion, a price-to-earnings ratio of -5.32 and a beta of 0.96.

International Paper (NYSE:IP - Get Free Report) last released its earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.03). The company had revenue of $5.97 billion for the quarter, compared to analyst estimates of $6.02 billion. International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.The business's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the company posted $0.17 earnings per share. On average, equities analysts forecast that International Paper will post 1.38 EPS for the current year.

International Paper Announces Dividend

The firm 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 of this dividend is Friday, May 22nd. This represents a $1.85 annualized dividend and a yield of 5.5%. International Paper's dividend payout ratio (DPR) is currently -29.09%.

Insider Buying and Selling

In other news, Director Scott Tozier acquired 10,000 shares of International Paper stock in a transaction on Friday, May 1st. The stock was purchased at an average price of $31.30 per share, with a total value of $313,000.00. Following the completion of the purchase, the director owned 10,025 shares of the company's stock, valued at approximately $313,782.50. The trade was a 40,000.00% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Anders Gustafsson acquired 13,217 shares of International Paper stock in a transaction on Thursday, March 12th. The stock was purchased at an average cost of $37.83 per share, with a total value of $499,999.11. Following the purchase, the director directly owned 26,092 shares of the company's stock, valued at approximately $987,060.36. This trade represents a 102.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 36,092 shares of company stock valued at $1,313,064 in the last three months. Insiders own 0.21% of the company's stock.

Institutional Trading of International Paper

A number of hedge funds have recently bought and sold shares of the business. First Nebraska Trust Co bought a new stake in shares of International Paper in the first quarter valued at $2,654,000. Cozad Asset Management Inc. grew its position in shares of International Paper by 8.3% in the first quarter. Cozad Asset Management Inc. now owns 35,633 shares of the basic materials company's stock valued at $1,272,000 after purchasing an additional 2,735 shares in the last quarter. Front Street Capital Management Inc. grew its position in shares of International Paper by 144.1% in the first quarter. Front Street Capital Management Inc. now owns 560,974 shares of the basic materials company's stock valued at $20,027,000 after purchasing an additional 331,155 shares in the last quarter. NewEdge Advisors LLC grew its position in shares of International Paper by 212.2% in the first quarter. NewEdge Advisors LLC now owns 37,311 shares of the basic materials company's stock valued at $1,332,000 after purchasing an additional 25,360 shares in the last quarter. Finally, Edgestream Partners L.P. purchased a new position in shares of International Paper in the first quarter valued at $360,000. 81.95% of the stock is currently owned by institutional investors.

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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