International Paper (NYSE:IP) Hits New 12-Month Low - Here's What Happened

Key Points

• Shares of International Paper dropped to a new 52-week low of $35.45 (last $35.52) on heavy volume after reporting quarterly EPS of ($0.08), which missed estimates by $0.36 despite revenue rising 53.1% year-over-year.
• Analysts are mixed but the consensus rating is Hold with a consensus price target of $48.25, implying meaningful upside from current levels despite varied firm-level ratings and target adjustments.
• CEO Andrew K. Silvernail purchased 50,000 shares at $39.98 on January 30, and institutional investors own about 81.95% of the company’s stock.

Shares of International Paper Company (NYSE:IP - Get Free Report) reached a new 52-week low during trading on Thursday . The stock traded as low as $35.45 and last traded at $35.5220, with a volume of 4773662 shares traded. The stock had previously closed at $38.66.

Analysts Set New Price Targets

A number of brokerages have weighed in on IP. JPMorgan Chase & Co. increased their price target on International Paper from $45.00 to $48.00 and gave the stock a "neutral" rating in a research note on Friday, January 30th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of International Paper in a research report on Monday, December 29th. Stifel Nicolaus dropped their target price on International Paper from $51.80 to $50.70 and set a "buy" rating for the company in a research note on Monday, February 9th. Royal Bank Of Canada decreased their price target on International Paper from $55.00 to $54.00 and set an "outperform" rating on the stock in a research note on Friday, January 30th. Finally, Citigroup lifted their price target on International Paper from $46.00 to $47.00 and gave the company a "buy" rating in a report on Friday, January 30th. Eight analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, International Paper has an average rating of "Hold" and a consensus price target of $48.25.

International Paper Stock Performance

The stock's fifty day simple moving average is $43.30 and its two-hundred day simple moving average is $43.03. The company has a market cap of $18.81 billion, a price-to-earnings ratio of -5.29 and a beta of 1.09. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.28.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The basic materials company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of $0.28 by ($0.36). International Paper had a negative return on equity of 0.35% and a negative net margin of 14.12%.The firm had revenue of $6.01 billion for the quarter, compared to analyst estimates of $5.90 billion. During the same quarter in the previous year, the company earned ($0.02) earnings per share. The company's quarterly revenue was up 53.1% on a year-over-year basis. Equities research analysts anticipate that International Paper Company will post 2.77 EPS for the current year.

Insider Buying and Selling

In other news, CEO Andrew K. Silvernail acquired 50,000 shares of the business's stock in a transaction dated Friday, January 30th. The shares were bought at an average cost of $39.98 per share, for a total transaction of $1,999,000.00. Following the acquisition, the chief executive officer directly owned 50,000 shares in the company, valued at $1,999,000. This trade represents a ∞ increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.35% of the stock is owned by corporate insiders.

Institutional Trading of International Paper

Institutional investors have recently modified their holdings of the company. AE Wealth Management LLC boosted its position in International Paper by 8.5% during the 3rd quarter. AE Wealth Management LLC now owns 332,310 shares of the basic materials company's stock worth $15,419,000 after purchasing an additional 26,146 shares during the period. Westfield Capital Management Co. LP raised its position in International Paper by 9.7% in the second quarter. Westfield Capital Management Co. LP now owns 2,323,693 shares of the basic materials company's stock valued at $108,819,000 after purchasing an additional 205,888 shares during the period. Caprock Group LLC purchased a new position in International Paper in the third quarter valued at about $2,340,000. Norges Bank acquired a new position in shares of International Paper during the second quarter worth about $281,735,000. Finally, Tableaux LLC purchased a new stake in shares of International Paper in the second quarter worth about $2,342,000. Hedge funds and other institutional investors 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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