International Paper (NYSE:IP) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded International Paper from "Hold" to "Strong Sell," lowering medium‑term earnings forecasts (FY2027 cut to $2.97 from $3.24, FY2028 to $3.31) and notably trimming Q2 2027 to $0.62 from $0.86, flagging weaker near‑term earnings momentum.
• Despite the downgrade, analyst coverage is mixed with a MarketBeat consensus of "Hold" and a $45.48 average price target; the stock trades near $32.66 after a recent quarterly EPS miss (‑$0.08 vs. $0.28) and negative margins, while insiders (including the CEO) have been buying shares.

International Paper (NYSE:IP - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Thursday,Zacks.com reports. Zacks Research also issued estimates for International Paper's Q1 2026 earnings at $0.24 EPS, Q2 2026 earnings at $0.30 EPS, Q3 2026 earnings at $0.56 EPS, Q4 2026 earnings at $0.62 EPS, FY2026 earnings at $1.73 EPS, Q1 2027 earnings at $0.72 EPS, Q2 2027 earnings at $0.62 EPS, Q3 2027 earnings at $0.78 EPS, Q4 2027 earnings at $0.85 EPS, FY2027 earnings at $2.97 EPS, Q1 2028 earnings at $0.79 EPS and FY2028 earnings at $3.31 EPS.

A number of other analysts have also recently issued reports on IP. Truist Financial reduced their price objective on International Paper from $48.00 to $44.00 and set a "buy" rating for the company in a research report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft assumed coverage on International Paper in a research report on Wednesday, April 1st. They set a "hold" rating and a $38.00 price objective for the company. BNP Paribas Exane reduced 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. Jefferies Financial Group lifted their price objective on International Paper from $47.00 to $48.00 and gave the company a "buy" rating in a research report on Thursday, January 22nd. Finally, UBS Group reduced their price objective on International Paper from $44.00 to $40.00 and set a "neutral" rating for the company in a research report on Friday, April 10th. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $45.48.

International Paper Stock Performance

Shares of International Paper stock opened at $32.66 on Thursday. The stock has a market cap of $17.29 billion, a PE ratio of -4.87 and a beta of 1.14. The business has a fifty day simple moving average of $38.51 and a 200-day simple moving average of $40.50. The company has a quick ratio of 1.02, a current ratio of 1.28 and a debt-to-equity ratio of 0.60. International Paper has a 12 month low of $32.53 and a 12 month high of $56.13.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings data 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). The firm had revenue of $6.01 billion for the quarter, compared to analyst estimates of $5.90 billion. International Paper had a negative net margin of 14.12% and a negative return on equity of 0.35%. International Paper's revenue for the quarter was up 53.1% on a year-over-year basis. During the same period in the previous year, the business posted ($0.02) EPS. On average, sell-side analysts anticipate that International Paper will post 1.67 EPS for the current fiscal year.

Insider Activity

In related news, Director Anders Gustafsson bought 13,217 shares of the business's stock in a transaction on Thursday, March 12th. The shares were bought at an average cost of $37.83 per share, for a total transaction of $499,999.11. Following the completion of the acquisition, the director directly owned 26,092 shares in the company, valued at approximately $987,060.36. This represents a 102.66% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew K. Silvernail bought 50,000 shares of the business's stock in a transaction on Friday, January 30th. The shares were bought at an average price of $39.98 per share, for a total transaction of $1,999,000.00. Following the completion of the acquisition, the chief executive officer owned 50,000 shares of the company's stock, valued at approximately $1,999,000. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have acquired 76,092 shares of company stock worth $2,999,064. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On International Paper

Several institutional investors have recently bought and sold shares of IP. McIlrath & Eck LLC raised its holdings in International Paper by 452.6% during the fourth quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock valued at $25,000 after buying an additional 525 shares in the last quarter. MV Capital Management Inc. bought a new position in International Paper during the fourth quarter valued at about $25,000. DV Equities LLC bought a new position in International Paper during the fourth quarter valued at about $29,000. Sound Income Strategies LLC raised its holdings in International Paper by 94.0% during the fourth quarter. Sound Income Strategies LLC now owns 710 shares of the basic materials company's stock valued at $31,000 after buying an additional 344 shares in the last quarter. Finally, Summit Securities Group LLC raised its holdings in International Paper by 115.4% during the fourth quarter. Summit Securities Group LLC now owns 784 shares of the basic materials company's stock valued at $31,000 after buying an additional 5,875 shares in the last quarter. 81.95% of the stock is currently owned by institutional investors.

International Paper News Roundup

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Zacks bumped a few quarterly estimates: Q4 2026 raised to $0.62 (from $0.61), Q4 2027 raised to $0.85 (from $0.80), and Q1 2026 nudged to $0.24 (from $0.23). These small upward revisions are supportive for near‑term upside if trends persist.
• Neutral Sentiment: Zacks retains a "Hold" rating and cites a consensus current full‑year EPS of $1.67 — the firm is broadly adjusting timing and magnitude of earnings but not changing its overall view.
• Negative Sentiment: Zacks cut FY2027 estimates to $2.97 (from $3.24) and trimmed FY2028 to $3.31 (from $3.49), lowering medium‑term profitability expectations.
• Negative Sentiment: Q2 2027 estimate was steeply reduced to $0.62 (from $0.86), the largest single quarterly downgrade in the report — a clear near‑term negative signal for earnings momentum.
• Negative Sentiment: Multiple modest downward tweaks across quarters (Q1 2027 to $0.72, Q3 2027 to $0.78, Q3 2026/Q2 2026 cuts) indicate Zacks expects slower recovery/pressure across IP’s cycle.

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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