Investors Purchase High Volume of Call Options on International Paper (NYSE:IP)

Key Points

• Unusually heavy call option buying hit International Paper, with traders purchasing 15,265 call contracts on Monday — about 334% above normal volume.
• Director Scott Tozier bought 10,000 shares at $31.30 each, a $313,000 purchase that increased his stake to 10,025 shares and signaled insider confidence.
• The stock rose 1.9% to $36.83, while analysts maintained a generally positive outlook with a Moderate Buy consensus and an average target price of $43.73.

International Paper Company (NYSE:IP - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 15,265 call options on the stock. This is an increase of 334% compared to the typical volume of 3,514 call options.

Insider Activity at International Paper

In related news, Director Scott Tozier bought 10,000 shares of the company's stock in a transaction dated 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 transaction, the director owned 10,025 shares in the company, valued at approximately $313,782.50. This trade represents a 40,000.00% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.21% of the company's stock.

Institutional Trading of International Paper

Large investors have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd bought a new position in shares of International Paper during the 1st quarter valued at $249,000. Intech Investment Management LLC lifted its holdings in shares of International Paper by 100.5% during the 1st quarter. Intech Investment Management LLC now owns 32,025 shares of the basic materials company's stock valued at $1,709,000 after buying an additional 16,055 shares during the period. Cresset Asset Management LLC lifted its holdings in shares of International Paper by 20.8% during the 2nd quarter. Cresset Asset Management LLC now owns 17,345 shares of the basic materials company's stock valued at $812,000 after buying an additional 2,981 shares during the period. Jump Financial LLC lifted its holdings in shares of International Paper by 280.9% during the 2nd quarter. Jump Financial LLC now owns 38,092 shares of the basic materials company's stock valued at $1,784,000 after buying an additional 28,092 shares during the period. Finally, Cerity Partners LLC lifted its holdings in shares of International Paper by 8.0% during the 2nd quarter. Cerity Partners LLC now owns 33,749 shares of the basic materials company's stock valued at $1,580,000 after buying an additional 2,493 shares during the period. 81.95% of the stock is currently owned by institutional investors.

International Paper Stock Up 1.9%

NYSE:IP traded up $0.68 on Monday, reaching $36.83. 4,135,913 shares of the stock traded hands, compared to its average volume of 7,023,105. The company has a market capitalization of $19.50 billion, a price-to-earnings ratio of -5.77 and a beta of 0.96. The company has a current ratio of 1.21, a quick ratio of 0.94 and a debt-to-equity ratio of 0.55. International Paper has a 12 month low of $29.26 and a 12 month high of $56.13. The company's fifty day simple moving average is $33.60 and its 200 day simple moving average is $38.29.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The basic materials company reported $0.15 earnings per share for the quarter, missing analysts' consensus estimates 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 firm had revenue of $5.97 billion for the quarter, compared to the consensus estimate of $6.02 billion. During the same quarter in the prior year, the business posted $0.17 earnings per share. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. Equities analysts predict that International Paper will post 1.38 EPS for the current fiscal year.

International Paper Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 22nd were paid a $0.4625 dividend. The ex-dividend date was Friday, May 22nd. This represents a $1.85 dividend on an annualized basis and a dividend yield of 5.0%. International Paper's payout ratio is currently -29.09%.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Weiss Ratings lowered shares of International Paper from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, April 27th. Wells Fargo & Company upgraded shares of International Paper from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $38.00 to $39.00 in a research note on Monday, May 4th. BNP Paribas Exane decreased their price target on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Seaport Research Partners upgraded shares of International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price target for the company in a research note on Friday, May 1st. Finally, Royal Bank Of Canada cut their price target on International Paper from $48.00 to $45.00 and set an "outperform" rating on the stock in a research note on Friday, May 1st. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, International Paper presently has an average rating of "Moderate Buy" and an average target price of $43.73.

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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