International Paper (NYSE:IP) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded International Paper from “Sell” to “Hold,” while analyst opinions remain mixed; the broader consensus is “Moderate Buy” with an average price target of $48.75.
• International Paper reported quarterly EPS of $0.04, beating estimates for a $0.04 loss, but revenue fell 11.3% year over year to $6.0 billion, below expectations.
• Profitability remains under pressure from maintenance, input and freight costs, with a temporary Alabama mill closure expected to reduce third-quarter EBITDA by about $85 million and analysts cutting near-term EPS estimates.

International Paper (NYSE:IP - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday.

IP has been the topic of several other reports. Zacks Research upgraded shares of International Paper from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Seaport Research Partners upgraded shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 target price for the company in a research report on Friday, May 1st. Citigroup increased their price target on International Paper from $43.00 to $48.00 and gave the company a "buy" rating in a research note on Friday. Loop Capital set a $61.00 price target on International Paper in a research report on Tuesday. Finally, Bank of America downgraded International Paper from a "buy" rating to a "neutral" rating and set a $41.00 price objective for the company. in a report on Tuesday, July 14th. Nine equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, International Paper currently has a consensus rating of "Moderate Buy" and an average target price of $48.75.

International Paper Stock Performance

Shares of NYSE:IP opened at $41.03 on Friday. The company has a current ratio of 1.10, a quick ratio of 0.94 and a debt-to-equity ratio of 0.57. International Paper has a 1-year low of $29.26 and a 1-year high of $52.28. The stock has a market capitalization of $21.73 billion, a P/E ratio of -6.29 and a beta of 0.94. The business has a 50-day moving average price of $36.88 and a two-hundred day moving average price of $38.04.

International Paper (NYSE:IP - Get Free Report) last issued its earnings results on Thursday, July 30th. The basic materials company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.08. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The company had revenue of $6 billion for the quarter, compared to analyst estimates of $6.19 billion. During the same quarter last year, the firm earned $0.20 EPS. The company's revenue for the quarter was down 11.3% on a year-over-year basis. Equities analysts predict that International Paper will post 1.4 earnings per share for the current year.

Institutional Trading of International Paper

Large investors have recently made changes to their positions in the company. McIlrath & Eck LLC increased its holdings in shares of International Paper by 452.6% in the fourth quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock worth $25,000 after acquiring an additional 525 shares in the last quarter. MV Capital Management Inc. acquired a new position in shares of International Paper in the 4th quarter valued at approximately $25,000. Ascentis Independent Advisors bought a new stake in International Paper during the 1st quarter worth approximately $28,000. DV Equities LLC bought a new stake in International Paper during the 4th quarter worth approximately $29,000. Finally, Sound Income Strategies LLC boosted its holdings in shares of International Paper by 94.0% in 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 during the period. Institutional investors own 81.95% of the company's stock.

Trending Headlines about International Paper

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

• Positive Sentiment: Citigroup raised its price target to $48 and assigned a Buy rating, implying approximately 17% potential upside based on the referenced price. The call suggests confidence in containerboard pricing and International Paper’s longer-term recovery prospects. Benzinga analyst price target report
• Positive Sentiment: Second-quarter adjusted EPS was $0.04, beating the consensus estimate of a $0.04 loss. Recent insider activity also showed five open-market purchases and no sales over the past six months, including purchases by the CEO and other executives. These factors may provide some support for investor confidence. International Paper second-quarter results
• Neutral Sentiment: JPMorgan upgraded International Paper’s stock rating, while other recent analyst targets have been mixed. Institutional positioning was also divided, with some large investors adding shares and others making substantial reductions. JPMorgan International Paper rating update
• Negative Sentiment: Revenue totaled $6.00 billion, below roughly $6.2 billion in expectations and down 11.3% year over year. The company reported a $12 million loss from continuing operations, negative free cash flow of $7 million, and reduced profitability expectations. Management projected full-year adjusted EBITDA of $3.20 billion to $3.40 billion and warned that a temporary Pine Hill, Alabama, mill closure will reduce third-quarter EBITDA by about $85 million. Higher maintenance, input and freight costs are adding further pressure. Zacks International Paper earnings analysis
• Negative Sentiment: Analysts cut estimates for second- and third-quarter EPS, reinforcing concerns that maintenance outages, macroeconomic headwinds and weaker profitability could outweigh the quarterly earnings beat. International Paper EPS forecast revision

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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