International Paper (NYSE:IP) Upgraded by Zacks Research to Hold Rating

Key Points

• Zacks Research upgraded International Paper from “strong sell” to “hold”, while other analysts remained mixed but generally constructive; the stock now carries a Moderate Buy consensus with an average target price of $43.89.
• The company’s latest earnings report missed expectations, with EPS of $0.15 versus the $0.18 estimate and revenue of $5.97 billion slightly below forecasts, though revenue was still up 13.4% year over year.
• International Paper shares opened at $36.51, below the recent analyst target range, and the stock has attracted notable institutional ownership, with hedge funds and other institutions holding 81.95% of the company.

International Paper (NYSE:IP - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

Other equities research analysts also recently issued reports about the company. Citigroup upped their price objective on International Paper from $36.00 to $43.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Weiss Ratings cut International Paper from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, April 27th. Wells Fargo & Company boosted their target price on International Paper from $39.00 to $42.00 and gave the company an "overweight" rating in a research report on Thursday, July 9th. JPMorgan Chase & Co. increased their price target on International Paper from $43.00 to $51.00 and gave the company a "neutral" rating in a report on Thursday, July 9th. Finally, Truist Financial dropped their price objective on shares of International Paper from $48.00 to $44.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. Eight investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, International Paper presently has an average rating of "Moderate Buy" and a consensus target price of $43.89.

International Paper Stock Performance

Shares of NYSE:IP opened at $36.51 on Monday. International Paper has a 52 week low of $29.26 and a 52 week high of $56.13. The stock has a market capitalization of $19.33 billion, a P/E ratio of -5.74 and a beta of 0.94. The firm has a fifty day simple moving average of $34.79 and a two-hundred day simple moving average of $38.08. The company has a quick ratio of 0.94, a current ratio of 1.21 and a debt-to-equity ratio of 0.55.

International Paper (NYSE:IP - Get Free Report) last announced 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). International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The business had revenue of $5.97 billion for the quarter, compared to analysts' expectations of $6.02 billion. During the same quarter in the prior year, the company posted $0.17 earnings per share. The firm's quarterly revenue was up 13.4% compared to the same quarter last year. On average, analysts expect that International Paper will post 1.38 earnings per share for the current fiscal year.

Insider Buying and Selling at International Paper

In other International Paper news, Director Scott Tozier purchased 10,000 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average cost of $31.30 per share, with a total value of $313,000.00. Following the purchase, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.21% of the company's stock.

Institutional Trading of International Paper

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Capital International Investors raised its stake in shares of International Paper by 29.4% during 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 acquiring an additional 14,422,616 shares in the last quarter. Franklin Resources Inc. increased its holdings in International Paper by 81.6% during the 4th quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock worth $584,270,000 after purchasing an additional 6,663,986 shares during the period. Norges Bank bought a new stake in International Paper during the 4th quarter valued at $250,093,000. Bank of New York Mellon Corp raised its position in International Paper by 66.2% during the 1st quarter. Bank of New York Mellon Corp now owns 13,601,299 shares of the basic materials company's stock valued at $485,566,000 after purchasing an additional 5,417,274 shares in the last quarter. Finally, Atlas FRM LLC lifted its holdings in shares of International Paper by 56.2% in the 4th quarter. Atlas FRM LLC now owns 5,000,000 shares of the basic materials company's stock worth $196,950,000 after buying an additional 1,800,000 shares during the period. Hedge funds and other institutional investors own 81.95% of the company's stock.

About International Paper

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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