International Paper (NYSE:IP) Shares Gap Down After Earnings Miss

International Paper (NYSE:IP - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $47.63, but opened at $44.06. International Paper shares last traded at $45.12, with a volume of 1,131,808 shares.

The basic materials company reported $0.23 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.12). The company had revenue of $5.90 billion during the quarter, compared to analysts' expectations of $6.38 billion. International Paper had a return on equity of 4.75% and a net margin of 2.99%. International Paper's revenue was up 27.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.17 EPS.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Truist Financial decreased their price target on shares of International Paper from $64.00 to $59.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. Royal Bank of Canada reaffirmed an "outperform" rating and issued a $64.00 price target on shares of International Paper in a research note on Wednesday, March 26th. Citigroup began coverage on International Paper in a research note on Wednesday, March 5th. They issued a "buy" rating and a $60.00 price objective for the company. Wells Fargo & Company lowered their target price on shares of International Paper from $52.00 to $45.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 8th. Finally, JPMorgan Chase & Co. initiated coverage on shares of International Paper in a research note on Thursday, March 20th. They issued an "overweight" rating and a $59.00 price target on the stock. One research analyst has rated the stock with a sell rating, four have issued a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $54.77.

Institutional Investors Weigh In On International Paper

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Capital Research Global Investors increased its holdings in shares of International Paper by 68.8% during the 4th quarter. Capital Research Global Investors now owns 29,904,546 shares of the basic materials company's stock worth $1,609,462,000 after buying an additional 12,191,361 shares during the last quarter. FMR LLC increased its stake in International Paper by 48.9% during the fourth quarter. FMR LLC now owns 26,559,812 shares of the basic materials company's stock worth $1,429,449,000 after acquiring an additional 8,720,575 shares during the last quarter. Bank of New York Mellon Corp raised its position in International Paper by 19.4% in the first quarter. Bank of New York Mellon Corp now owns 17,145,485 shares of the basic materials company's stock valued at $914,712,000 after purchasing an additional 2,782,042 shares during the period. Bessemer Group Inc. lifted its stake in shares of International Paper by 3,304.9% in the 1st quarter. Bessemer Group Inc. now owns 2,547,255 shares of the basic materials company's stock valued at $135,897,000 after purchasing an additional 2,472,443 shares during the last quarter. Finally, Alyeska Investment Group L.P. increased its position in shares of International Paper by 134.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 3,948,752 shares of the basic materials company's stock worth $212,522,000 after purchasing an additional 2,266,762 shares during the last quarter. 81.95% of the stock is currently owned by institutional investors and hedge funds.

International Paper Stock Performance

The firm's fifty day moving average is $49.99 and its 200-day moving average is $53.51. The company has a current ratio of 1.49, a quick ratio of 1.08 and a debt-to-equity ratio of 0.66. The stock has a market capitalization of $24.19 billion, a PE ratio of 29.19, a price-to-earnings-growth ratio of 0.39 and a beta of 0.99.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.