International Paper (NYSE:IP) Shares Gap Up - Still a Buy?

Key Points

• International Paper shares opened sharply higher, rising from a previous close of $31.90 to $33.25 and last trading around $33.76.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and average price target of $46.90, despite UBS cutting its target to $35 and assigning a neutral rating.
• The company reported quarterly EPS of $0.04, beating estimates, and declared a quarterly dividend of $0.4625, equivalent to a 5.4% annualized yield; however, revenue fell 11.3% year over year and net margins remained negative.

International Paper Company (NYSE:IP - Get Free Report)'s stock price gapped up prior to trading on Thursday. The stock had previously closed at $31.90, but opened at $33.25. International Paper shares last traded at $33.7550, with a volume of 1,016,485 shares traded.

Analysts Set New Price Targets

Several research firms have weighed in on IP. Zacks Research raised shares of International Paper from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. JPMorgan Chase & Co. raised their price objective on International Paper from $61.00 to $62.00 and gave the company an "overweight" rating in a research note on Wednesday, September 23rd. Seaport Research Partners reiterated a "buy" rating and issued a $46.00 price objective on shares of International Paper in a report on Wednesday, August 12th. Argus reiterated a "buy" rating and issued a $45.00 price objective on shares of International Paper in a report on Thursday, September 24th. Finally, UBS Group lowered their target price on International Paper from $47.00 to $35.00 and set a "neutral" rating for the company in a research note on Monday, October 5th. Ten equities 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 company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $46.90.

International Paper Price Performance

The company has a market cap of $18.15 billion, a PE ratio of -5.26, a PEG ratio of 4.14 and a beta of 0.93. The firm's 50-day moving average is $36.51 and its 200-day moving average is $36.03. The company has a quick ratio of 0.84, a current ratio of 1.10 and a debt-to-equity ratio of 0.57.

International Paper (NYSE:IP - Get Free Report) last released its earnings results on Thursday, July 30th. The basic materials company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of ($0.04) by $0.08. International Paper had a negative return on equity of 1.09% and a negative net margin of 14.20%. The company had revenue of $6 billion during the quarter, compared to analysts' expectations of $6.19 billion. During the same quarter last year, the business posted $0.20 EPS. The firm's revenue for the quarter was down 11.3% compared to the same quarter last year. On average, equities analysts anticipate that International Paper Company will post 1.28 EPS for the current year.

International Paper Announces Dividend

The firm also recently declared 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. The ex-dividend date is Monday, November 16th. This represents a $1.85 annualized dividend and a dividend yield of 5.4%. International Paper's payout ratio is currently -28.37%.

Insider Activity at International Paper

In related news, VP William Hamic sold 24,500 shares of the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $41.20, for a total transaction of $1,009,400.00. Following the completion of the sale, the vice president owned 106,952 shares in the company, valued at approximately $4,406,422.40. This 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 firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total value of $146,860.00. Following the completion of the transaction, the chief accounting officer directly 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.

Hedge Funds Weigh In On International Paper

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of International Paper during the second quarter worth $1,940,896,000. State Street Corp grew its stake in International Paper by 7.1% during the second quarter. State Street Corp now owns 32,999,909 shares of the basic materials company's stock valued at $1,257,297,000 after acquiring an additional 2,189,597 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in International Paper during the second quarter valued at $689,498,000. Atlas FRM LLC bought a new stake in International Paper in the 2nd quarter valued at $374,904,000. Finally, Hill City Capital LP bought a new stake in International Paper in the 2nd quarter valued at $194,310,000. Institutional investors own 81.95% of the company's stock.

About International Paper

International Paper NYSE: IP is a global producer of sustainable packaging, pulp and paper products. The company manufactures corrugated packaging, containerboard and other fiber-based packaging solutions used to protect, transport and display goods, along with market pulp and specialty paper products.

Founded in 1898, International Paper has developed operations serving customers across North America and Europe. Its activities also include recycling and the recovery of fiber used in paper and packaging production, supporting the company's focus on renewable and recyclable materials.

International Paper completed its combination with DS Smith in 2025, expanding its geographic reach and packaging capabilities.

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