International Paper (NYSE:IP) Sets New 1-Year Low - What's Next?

Key Points

• International Paper hit a new 52-week low, trading as low as $29.44 after closing at $30.40, underscoring recent weakness in the stock.
• Recent analyst sentiment is mixed but still leans positive overall: Seaport upgraded the stock to buy, while UBS cut its target to $32. The consensus rating remains Moderate Buy with an average price target of $43.73.
• The company missed first-quarter expectations, posting EPS of $0.15 versus $0.18 expected and revenue of $5.97 billion versus $6.02 billion expected. International Paper also announced a quarterly dividend of $0.4625 per share, implying a 6.3% annualized yield.

Shares of International Paper Company (NYSE:IP - Get Free Report) reached a new 52-week low during trading on Tuesday . The stock traded as low as $29.44 and last traded at $29.6030, with a volume of 350799 shares trading hands. The stock had previously closed at $30.40.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Seaport Research Partners raised shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price objective on the stock in a report on Friday, May 1st. Jefferies Financial Group upped their price objective on shares of International Paper from $47.00 to $48.00 and gave the company a "buy" rating in a report on Thursday, January 22nd. UBS Group decreased their target price on shares of International Paper from $40.00 to $32.00 and set a "neutral" rating for the company in a research note on Monday, May 4th. Royal Bank Of Canada decreased their target price on shares of International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of International Paper in a research note on Wednesday, April 1st. They issued a "hold" rating and a $38.00 target price for the company. Nine equities research 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's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $43.73.

International Paper Stock Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.94 and a current ratio of 1.21. The firm's 50 day moving average is $34.98 and its 200-day moving average is $38.94. The stock has a market capitalization of $15.61 billion, a price-to-earnings ratio of -4.64 and a beta of 0.93.

International Paper (NYSE:IP - Get Free Report) last posted its earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.03). The firm had revenue of $5.97 billion during the quarter, compared to analyst estimates of $6.02 billion. International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The business's revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.17 earnings per share. Analysts forecast that International Paper Company will post 1.43 earnings per share for the current fiscal year.

International Paper Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be given a dividend of $0.4625 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.85 dividend on an annualized basis and a yield of 6.3%. International Paper's dividend payout ratio is currently -29.09%.

Insiders Place Their Bets

In related news, Director Scott Tozier acquired 10,000 shares of International Paper stock in a transaction on Friday, May 1st. The stock was bought at an average cost of $31.30 per share, for a total transaction of $313,000.00. Following the completion of the transaction, the director owned 10,025 shares of the company's stock, valued at approximately $313,782.50. The trade was a 40,000.00% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Anders Gustafsson acquired 13,217 shares of International Paper stock in a transaction on Thursday, March 12th. The shares were 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 $987,060.36. This trade represents a 102.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 36,092 shares of company stock valued at $1,313,064 over the last 90 days. 0.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Paper

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in International Paper by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 64,357,913 shares of the basic materials company's stock worth $2,535,058,000 after acquiring an additional 310,834 shares during the period. Capital International Investors raised its position in shares of International Paper by 29.4% in the fourth quarter. Capital International Investors now owns 63,413,335 shares of the basic materials company's stock valued at $2,498,013,000 after buying an additional 14,422,616 shares during the last quarter. Capital Research Global Investors raised its position in shares of International Paper by 0.4% in the fourth quarter. Capital Research Global Investors now owns 54,535,444 shares of the basic materials company's stock valued at $2,148,154,000 after buying an additional 204,654 shares during the last quarter. State Street Corp raised its position in shares of International Paper by 1.3% in the fourth quarter. State Street Corp now owns 30,009,733 shares of the basic materials company's stock valued at $1,182,083,000 after buying an additional 397,673 shares during the last quarter. Finally, Franklin Resources Inc. raised its position in shares of 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 buying an additional 6,663,986 shares during the last quarter. 81.95% of the stock is currently owned by institutional investors and hedge funds.

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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