International Paper (NYSE:IP) Share Price Crosses Above Fifty Day Moving Average Following Analyst Downgrade

Key Points

• International Paper shares rose above their 50-day moving average, reaching $36.34 before closing at $35.93, after JPMorgan raised its price target from $61 to $62 and maintained an “overweight” rating.
• Third-quarter adjusted EPS of $0.37 beat estimates of $0.29, although revenue of $6.20 billion fell short of expectations and declined slightly year over year. A $1.38 billion goodwill impairment contributed to a reported net loss of $1.13 billion.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and $45.90 target price; International Paper also declared a quarterly dividend of $0.4625, representing a 5.1% annualized yield.

International Paper Company (NYSE:IP - Get Free Report) shares crossed above its fifty day moving average during trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $61.00 to $62.00. The stock has a fifty day moving average of $35.04 and traded as high as $36.34. JPMorgan Chase & Co. currently has an overweight rating on the stock. International Paper shares last traded at $35.93, with a volume of 7,751,263 shares.

IP has been the topic of several other research reports. Wall Street Zen upgraded International Paper from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Wells Fargo & Company increased their price objective on International Paper from $42.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Citigroup lifted their target price on International Paper from $43.00 to $48.00 and gave the company a "buy" rating in a research note on Friday, July 31st. UBS Group boosted their target price on International Paper from $40.00 to $47.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Finally, Zacks Research upgraded International Paper from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Ten research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, International Paper has a consensus rating of "Moderate Buy" and a consensus target price of $45.90.

Insider Buying and Selling

In other International Paper news, VP William Hamic sold 24,500 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $41.20, for a total value of $1,009,400.00. Following the completion of the sale, the vice president owned 106,952 shares of the company's stock, valued at approximately $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Holly G. Goughnour sold 3,500 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total transaction of $146,860.00. Following the sale, the chief accounting officer owned 34,248 shares in the company, valued at $1,437,046.08. The trade was a 9.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.21% of the stock is owned by insiders.

Key Headlines Impacting International Paper

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Analysts see potential for a turnaround. RBC said International Paper may be “turning the corner,” reflecting stronger North American packaging results and improving operating performance. RBC commentary on International Paper
• Positive Sentiment: North American profit guidance is encouraging. International Paper reported North American segment operating profit of $427 million, up from $204 million in the second quarter, and forecast fourth-quarter profit of $460 million to $500 million. Full-year guidance is $1.3 billion to $1.4 billion. International Paper third-quarter results
• Positive Sentiment: Adjusted earnings exceeded expectations. Third-quarter adjusted EPS was $0.37, above the $0.29 analyst consensus, supported by the rebound in North American operations.
• Neutral Sentiment: JPMorgan remains constructive despite lowering its target. JPMorgan reduced its price target from $62 to $51 but maintained an “overweight” rating, implying substantial upside from recent trading levels.
• Neutral Sentiment: Truist also lowered its target. Truist Securities cut its International Paper price target to $39, signaling more cautious expectations even as the target remains above the recent share price. Truist price-target update
• Negative Sentiment: Revenue and volumes disappointed. Third-quarter sales of $6.20 billion fell short of the $6.28 billion consensus and declined slightly year over year. Lower volumes and weakness in the EMEA business weighed on results.
• Negative Sentiment: A large noncash impairment produced a significant reported loss. International Paper posted a $1.13 billion net loss, including a $1.38 billion goodwill impairment tied to Packaging Solutions EMEA. Free cash flow was also negative $267 million, raising concerns about near-term financial flexibility.

Institutional Trading of International Paper

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Salomon & Ludwin LLC acquired a new stake in International Paper in the third quarter valued at approximately $25,000. True Freedom Investing LLC bought a new stake in shares of International Paper in the 3rd quarter worth about $5,261,000. Pinkerton Wealth LLC acquired a new stake in International Paper during the third quarter valued at approximately $5,356,000. MGO One Seven LLC bought a new position in International Paper during the third quarter worth $217,000. Finally, Choreo LLC acquired a new position in shares of International Paper in the 3rd quarter valued at about $657,000. Institutional investors and hedge funds own 81.95% of the company's stock.

International Paper Stock Up 4.2%

The stock has a market cap of $19.03 billion, a P/E ratio of -5.48, a PEG ratio of 4.56 and a beta of 0.93. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.01 and a quick ratio of 0.84. The stock's fifty day simple moving average is $35.04 and its 200-day simple moving average is $37.46.

International Paper (NYSE:IP - Get Free Report) last issued its earnings results on Wednesday, October 28th. The basic materials company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.08. International Paper had a positive return on equity of 1.77% and a negative net margin of 14.32%. The firm had revenue of $6.20 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same period last year, the company earned ($0.43) earnings per share. The firm's revenue for the quarter was down .4% on a year-over-year basis. On average, research analysts anticipate that International Paper Company will post 1.26 earnings per share for the current year.

International Paper Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 16th will be paid a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date of this dividend is Monday, November 16th. International Paper's payout ratio is currently -28.37%.

International Paper Company Profile

International Paper NYSE: IP is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.

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