International Paper (NYSE:IP) Shares Gap Down - Time to Sell?

Key Points

• International Paper's stock price gapped down from $47.17 to $44.76 prior to trading on Monday, with the last traded price at $45.39.
• Analyst ratings have varied, with JPMorgan downgrading the stock to "neutral" and lowering the target price, while Bank of America upgraded it to "buy" with a price target increase to $57.00.
• The company reported a Q2 EPS of $0.20, missing estimates significantly, though revenue was up 42.9% year-over-year.

International Paper Company (NYSE:IP - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $47.17, but opened at $44.76. International Paper shares last traded at $45.39, with a volume of 1,157,031 shares changing hands.

Analyst Ratings Changes

A number of research firms recently weighed in on IP. JPMorgan Chase & Co. downgraded International Paper from an "overweight" rating to a "neutral" rating and decreased their target price for the stock from $55.00 to $54.00 in a research report on Tuesday, August 5th. Wells Fargo & Company reaffirmed an "underweight" rating and issued a $43.00 target price (up from $40.00) on shares of International Paper in a research note on Thursday, July 10th. Bank of America upgraded shares of International Paper from a "neutral" rating to a "buy" rating and increased their price objective for the company from $55.00 to $57.00 in a report on Thursday, August 28th. Jefferies Financial Group reduced their price objective on shares of International Paper from $61.00 to $59.00 and set a "buy" rating on the stock in a research note on Friday, September 26th. Finally, UBS Group dropped their price target on International Paper from $60.00 to $55.00 and set a "buy" rating on the stock in a research report on Monday. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, International Paper has an average rating of "Hold" and a consensus target price of $55.47.

International Paper Stock Performance

The company has a fifty day moving average of $47.69 and a two-hundred day moving average of $48.32. The company has a market cap of $24.23 billion, a price-to-earnings ratio of -459.00, a P/E/G ratio of 0.53 and a beta of 1.10. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.96 and a current ratio of 1.33.

International Paper (NYSE:IP - Get Free Report) last released its earnings results on Thursday, July 31st. The basic materials company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.18). International Paper had a negative net margin of 0.12% and a positive return on equity of 2.63%. The firm had revenue of $6.77 billion during the quarter, compared to analyst estimates of $6.64 billion. During the same quarter in the previous year, the firm earned $0.55 EPS. International Paper's quarterly revenue was up 42.9% on a year-over-year basis. Equities research analysts anticipate that International Paper Company will post 2.77 EPS for the current year.

International Paper Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Friday, August 15th were paid a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date was Friday, August 15th. International Paper's payout ratio is currently -1,850.00%.

Insiders Place Their Bets

In other International Paper news, SVP Joseph R. Saab sold 9,000 shares of the company's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $45.53, for a total value of $409,770.00. Following the transaction, the senior vice president directly owned 27,673 shares in the company, valued at $1,259,951.69. This represents a 24.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.55% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of IP. Stratos Wealth Partners LTD. grew its holdings in shares of International Paper by 2.0% during the 1st quarter. Stratos Wealth Partners LTD. now owns 14,074 shares of the basic materials company's stock worth $751,000 after acquiring an additional 282 shares during the period. Spire Wealth Management lifted its stake in International Paper by 2,343.9% during the 1st quarter. Spire Wealth Management now owns 1,613 shares of the basic materials company's stock valued at $86,000 after acquiring an additional 1,547 shares during the period. Consolidated Planning Corp bought a new position in shares of International Paper during the 2nd quarter valued at $317,000. MBB Public Markets I LLC bought a new stake in shares of International Paper during the 1st quarter valued at about $313,000. Finally, Goldman Sachs Group Inc. lifted its position in International Paper by 78.9% during the first quarter. Goldman Sachs Group Inc. now owns 4,860,535 shares of the basic materials company's stock valued at $259,310,000 after purchasing an additional 2,143,027 shares in the last quarter. Institutional investors own 81.95% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.