International Paper (NYSE:IP) Price Target Lowered to $40.00 at UBS Group

Key Points

• UBS cut its price target on International Paper from $44 to $40 and left a neutral rating, implying roughly a 9.3% upside from the stock's current price (~$36.59).
• Multiple analysts have trimmed targets, leaving a consensus average target of $46.56 and a consensus rating of Moderate Buy (8 Buy, 5 Hold, 1 Sell).
• The company missed quarterly EPS (‑$0.08 vs. $0.28 expected) despite a 53% revenue increase, while insiders (including CEO Andrew K. Silvernail) purchased shares and institutional ownership remains high at 81.95%.

International Paper (NYSE:IP - Get Free Report) had its price target cut by analysts at UBS Group from $44.00 to $40.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "neutral" rating on the basic materials company's stock. UBS Group's price objective indicates a potential upside of 9.32% from the company's current price.

Other equities analysts have also issued reports about the stock. Argus dropped their price target on shares of International Paper from $55.00 to $50.00 and set a "buy" rating on the stock in a research note on Monday, December 22nd. BNP Paribas Exane dropped their price target on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating on the stock in a research note on Wednesday, March 25th. 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. JPMorgan Chase & Co. dropped their price target on shares of International Paper from $48.00 to $46.00 and set a "neutral" rating on the stock in a research note on Thursday, April 2nd. Finally, Royal Bank Of Canada dropped their price target on shares of International Paper from $55.00 to $54.00 and set an "outperform" rating on the stock in a research note on Friday, January 30th. Eight analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $46.56.

International Paper Stock Down 0.5%

International Paper stock traded down $0.19 during mid-day trading on Friday, hitting $36.59. The company had a trading volume of 1,504,879 shares, compared to its average volume of 7,151,106. The stock has a market cap of $19.37 billion, a price-to-earnings ratio of -5.45 and a beta of 1.14. International Paper has a 1 year low of $33.57 and a 1 year high of $56.13. The company has a quick ratio of 1.02, a current ratio of 1.28 and a debt-to-equity ratio of 0.60. The business has a fifty day moving average of $40.71 and a 200 day moving average of $41.31.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The basic materials company reported ($0.08) EPS for the quarter, missing the consensus estimate of $0.28 by ($0.36). The company had revenue of $6.01 billion during the quarter, compared to analysts' expectations of $5.90 billion. International Paper had a negative net margin of 14.12% and a negative return on equity of 0.35%. The business's revenue for the quarter was up 53.1% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.02) earnings per share. On average, sell-side analysts expect that International Paper will post 2.77 earnings per share for the current fiscal year.

Insider Buying and Selling at International Paper

In related news, CEO Andrew K. Silvernail purchased 50,000 shares of the firm's stock in a transaction that occurred on Friday, January 30th. The stock was purchased at an average cost of $39.98 per share, with a total value of $1,999,000.00. Following the completion of 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 ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Anders Gustafsson purchased 13,217 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were bought at an average cost of $37.83 per share, with a total value of $499,999.11. Following the completion of the acquisition, the director owned 26,092 shares of the company's stock, valued at approximately $987,060.36. This trade represents a 102.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have purchased 76,092 shares of company stock valued at $2,999,064. Corporate insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On International Paper

A number of hedge funds and other institutional investors have recently bought and sold shares of IP. Capital International Investors lifted its holdings in International Paper by 51.4% in the third quarter. Capital International Investors now owns 48,990,719 shares of the basic materials company's stock valued at $2,272,966,000 after acquiring an additional 16,622,062 shares during the period. Franklin Resources Inc. lifted its holdings in International Paper by 81.6% in the fourth quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock valued at $584,270,000 after acquiring an additional 6,663,986 shares during the period. Norges Bank acquired a new stake in International Paper in the fourth quarter valued at $250,093,000. Capital Research Global Investors lifted its holdings in International Paper by 7.5% in the third quarter. Capital Research Global Investors now owns 54,330,790 shares of the basic materials company's stock valued at $2,520,945,000 after acquiring an additional 3,768,772 shares during the period. Finally, Atlas FRM LLC lifted its holdings in International Paper by 56.3% in the fourth quarter. Atlas FRM LLC now owns 5,000,000 shares of the basic materials company's stock valued at $196,950,000 after acquiring an additional 1,800,000 shares during the period. 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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