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

Key Points

• International Paper hit a new 52-week low of $32.13 (last at $32.66) on heavy volume and is trading below its 50‑day ($38.18) and 200‑day ($40.32) moving averages, indicating negative technical momentum.
• Analysts have trimmed price targets (e.g., RBC to $48, Wells Fargo to $38) and the consensus rating is a Hold with a $45.48 target, based on a mixed set of 8 Buys, 4 Holds and 2 Sells.
• The company missed quarterly EPS expectations (reported -$0.08 vs. $0.28 expected) and showed a negative net margin, yet insiders including CEO Andrew Silvernail bought shares (50,000 at about $39.98), signaling insider confidence despite weak results.

International Paper Company (NYSE:IP - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The company traded as low as $32.13 and last traded at $32.6640, with a volume of 9654758 shares trading hands. The stock had previously closed at $32.65.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Royal Bank Of Canada dropped their price target on shares of International Paper from $54.00 to $48.00 and set an "outperform" rating on the stock in a research note on Thursday, April 16th. Zacks Research cut shares of International Paper from a "hold" rating to a "strong sell" rating in a research note on Thursday, April 23rd. Weiss Ratings reissued a "sell (d+)" rating on shares of International Paper in a research note on Friday, March 27th. Wells Fargo & Company dropped their price target on shares of International Paper from $40.00 to $38.00 and set an "equal weight" rating on the stock in a research note on Friday, March 20th. Finally, Stifel Nicolaus dropped their price target on shares of International Paper from $51.80 to $50.70 and set a "buy" rating on the stock in a research note on Monday, February 9th. Eight equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, International Paper currently has a consensus rating of "Hold" and a consensus target price of $45.48.

International Paper Price Performance

The firm has a market cap of $17.30 billion, a PE ratio of -4.87 and a beta of 1.14. The stock's fifty day moving average price is $38.18 and its 200-day moving average price is $40.32. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.28 and a quick ratio of 1.02.

International Paper (NYSE:IP - Get Free Report) last released its earnings results on Thursday, January 29th. The basic materials company reported ($0.08) earnings per share (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 business had revenue of $6.01 billion for the quarter, compared to analysts' expectations of $5.90 billion. During the same period in the previous year, the company earned ($0.02) EPS. International Paper's quarterly revenue was up 53.1% compared to the same quarter last year. As a group, equities analysts expect that International Paper Company will post 1.65 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Andrew K. Silvernail purchased 50,000 shares of the company's stock in a transaction dated Friday, January 30th. The stock was acquired at an average cost of $39.98 per share, for a total transaction of $1,999,000.00. Following the completion of the transaction, the chief executive officer directly owned 50,000 shares of the company's stock, valued at approximately $1,999,000. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Anders Gustafsson purchased 13,217 shares of the company's stock in a transaction dated Thursday, March 12th. The stock was bought at an average price of $37.83 per share, with a total value of $499,999.11. Following the completion of the transaction, the director directly owned 26,092 shares of the company's stock, valued at approximately $987,060.36. This represents a 102.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 76,092 shares of company stock valued at $2,999,064 in the last ninety days. Insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On International Paper

A number of large investors have recently made changes to their positions in IP. MCF Advisors LLC boosted its holdings in International Paper by 36.7% in the fourth quarter. MCF Advisors LLC now owns 853 shares of the basic materials company's stock valued at $34,000 after purchasing an additional 229 shares during the period. Rothschild Investment LLC boosted its holdings in International Paper by 4.2% in the fourth quarter. Rothschild Investment LLC now owns 5,993 shares of the basic materials company's stock valued at $236,000 after purchasing an additional 242 shares during the period. International Private Wealth Advisors LLC boosted its holdings in International Paper by 4.1% in the fourth quarter. International Private Wealth Advisors LLC now owns 6,175 shares of the basic materials company's stock valued at $243,000 after purchasing an additional 243 shares during the period. Independent Advisor Alliance raised its holdings in International Paper by 3.3% in the fourth quarter. Independent Advisor Alliance now owns 7,750 shares of the basic materials company's stock valued at $305,000 after acquiring an additional 244 shares in the last quarter. Finally, Evergreen Capital Management LLC raised its holdings in International Paper by 1.7% in the third quarter. Evergreen Capital Management LLC now owns 15,856 shares of the basic materials company's stock valued at $736,000 after acquiring an additional 263 shares in the last quarter. 81.95% of the stock is currently owned by hedge funds and other 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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