International Paper (NYSE:IP) Trading Down 8% Following Weak Earnings

Key Points

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International Paper Company (NYSE:IP - Get Free Report)'s share price was down 8% on Thursday following a dissappointing earnings announcement. The stock traded as low as $49.26 and last traded at $49.32. Approximately 5,054,770 shares traded hands during trading, a decline of 24% from the average daily volume of 6,607,913 shares. The stock had previously closed at $53.63.

The basic materials company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.18). International Paper had a net margin of 1.99% and a return on equity of 4.05%. During the same period in the previous year, the firm earned $0.55 EPS. International Paper's revenue for the quarter was up 42.9% compared to the same quarter last year.

International Paper Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Friday, August 15th will be given a $0.4625 dividend. The ex-dividend date is Friday, August 15th. This represents a $1.85 annualized dividend and a yield of 3.77%. International Paper's payout ratio is 158.12%.

Wall Street Analyst Weigh In

IP has been the topic of several research reports. Wells Fargo & Company reissued an "underweight" rating and issued a $43.00 target price (up from $40.00) on shares of International Paper in a research report on Thursday, July 10th. UBS Group assumed coverage on International Paper in a report on Wednesday, June 4th. They set a "buy" rating and a $60.00 price objective on the stock. Truist Financial set a $59.00 price objective on International Paper in a report on Wednesday, May 28th. Finally, Wall Street Zen upgraded International Paper from a "sell" rating to a "hold" rating in a report on Friday, June 27th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $55.65.

Insider Activity

In other news, CAO Holly G. Goughnour sold 7,500 shares of the company's stock in a transaction dated Monday, May 5th. The stock was sold at an average price of $44.85, for a total transaction of $336,375.00. Following the completion of the transaction, the chief accounting officer directly owned 31,525 shares of the company's stock, valued at approximately $1,413,896.25. This represents a 19.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.35% of the company's stock.

Institutional Trading of International Paper

Several institutional investors and hedge funds have recently made changes to their positions in IP. Gentry Private Wealth LLC boosted its holdings in shares of International Paper by 2.1% during the second quarter. Gentry Private Wealth LLC now owns 9,357 shares of the basic materials company's stock worth $438,000 after purchasing an additional 188 shares during the last quarter. Wright Investors Service Inc. raised its position in International Paper by 2.9% during the second quarter. Wright Investors Service Inc. now owns 7,226 shares of the basic materials company's stock valued at $338,000 after buying an additional 201 shares during the period. Summit Financial LLC raised its position in International Paper by 4.3% during the fourth quarter. Summit Financial LLC now owns 5,437 shares of the basic materials company's stock valued at $293,000 after buying an additional 224 shares during the period. Greenleaf Trust raised its position in International Paper by 2.5% during the first quarter. Greenleaf Trust now owns 9,244 shares of the basic materials company's stock valued at $493,000 after buying an additional 224 shares during the period. Finally, Sequoia Financial Advisors LLC raised its position in International Paper by 2.6% during the first quarter. Sequoia Financial Advisors LLC now owns 8,994 shares of the basic materials company's stock valued at $480,000 after buying an additional 231 shares during the period. 81.95% of the stock is owned by hedge funds and other institutional investors.

International Paper Stock Down 8.5%

The company has a quick ratio of 0.96, a current ratio of 1.33 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $25.91 billion, a price-to-earnings ratio of 41.96, a price-to-earnings-growth ratio of 0.50 and a beta of 1.02. The firm has a 50-day moving average of $49.28 and a two-hundred day moving average of $50.93.

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.

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