Royal Bank Of Canada Cuts International Paper (NYSE:IP) Price Target to $48.00

Key Points

• Royal Bank of Canada cut its price target on International Paper to $48 from $54 but kept an "outperform" rating, implying roughly a 30.5% upside from the stock's prior close.
• The stock's consensus view is a "Moderate Buy" with a $45.48 average price target (8 Buy, 5 Hold, 1 Sell among analysts), while shares trade around $36.77 within a 52-week range of $33.57–$56.13.
• International Paper missed EPS estimates (reported -$0.08 vs. $0.28 expected) despite revenue rising 53.1% to $6.01B, and insiders including the CEO and a director recently bought meaningful stakes (about 76,092 shares, ~$3M total).

International Paper (NYSE:IP - Get Free Report) had its price target lowered by investment analysts at Royal Bank Of Canada from $54.00 to $48.00 in a research report issued on Thursday,MarketScreener reports. The firm currently has an "outperform" rating on the basic materials company's stock. Royal Bank Of Canada's target price would suggest a potential upside of 30.53% from the stock's previous close.

A number of other research analysts have also issued reports on the stock. Wells Fargo & Company decreased their target price on shares of International Paper from $40.00 to $38.00 and set an "equal weight" rating on the stock in a research report on Friday, March 20th. Jefferies Financial Group boosted their price target on International Paper from $47.00 to $48.00 and gave the company a "buy" rating in a research note on Thursday, January 22nd. BNP Paribas Exane reduced their price target on International Paper from $44.00 to $42.00 and set an "outperform" rating on the stock in a research report on Wednesday, March 25th. Stifel Nicolaus lowered their price objective on International Paper from $51.80 to $50.70 and set a "buy" rating on the stock in a research note on Monday, February 9th. Finally, Argus cut their target price on International Paper from $55.00 to $50.00 and set a "buy" rating for the company in a research report on Monday, December 22nd. Eight research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $45.48.

International Paper Stock Up 0.7%

IP stock opened at $36.77 on Thursday. International Paper has a fifty-two week low of $33.57 and a fifty-two week high of $56.13. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.28 and a quick ratio of 1.02. The stock has a market capitalization of $19.47 billion, a price-to-earnings ratio of -5.44 and a beta of 1.14. The business's fifty day moving average price is $40.28 and its two-hundred day moving average price is $41.02.

International Paper (NYSE:IP - Get Free Report) last announced its earnings results on Thursday, January 29th. The basic materials company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.28 by ($0.36). International Paper had a negative net margin of 14.12% and a negative return on equity of 0.35%. The business had revenue of $6.01 billion during the quarter, compared to the consensus estimate of $5.90 billion. During the same period in the previous year, the firm posted ($0.02) EPS. The company's revenue was up 53.1% compared to the same quarter last year. On average, equities analysts anticipate that International Paper will post 2.77 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Anders Gustafsson purchased 13,217 shares of International Paper stock in a transaction that occurred on Thursday, March 12th. The shares were acquired at an average price of $37.83 per share, for a total transaction of $499,999.11. Following the transaction, the director owned 26,092 shares of the company's stock, valued at approximately $987,060.36. The trade was a 102.66% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Andrew K. Silvernail acquired 50,000 shares of the firm's stock in a transaction that occurred on Friday, January 30th. The stock was purchased at an average cost of $39.98 per share, for a total transaction of $1,999,000.00. Following the completion of the purchase, the chief executive officer directly owned 50,000 shares of the company's stock, valued at $1,999,000. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have bought 76,092 shares of company stock valued at $2,999,064. 0.21% of the stock is currently owned by insiders.

Hedge Funds Weigh In On International Paper

A number of institutional investors have recently modified their holdings of the business. Hsbc Holdings PLC grew its position in International Paper by 2.6% in the fourth quarter. Hsbc Holdings PLC now owns 906,269 shares of the basic materials company's stock valued at $35,743,000 after acquiring an additional 22,984 shares during the last quarter. Stance Capital LLC boosted its stake in shares of International Paper by 59.2% in the 4th quarter. Stance Capital LLC now owns 61,177 shares of the basic materials company's stock valued at $2,410,000 after purchasing an additional 22,761 shares in the last quarter. Rockefeller Capital Management L.P. boosted its stake in shares of International Paper by 2.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 13,274 shares of the basic materials company's stock valued at $523,000 after purchasing an additional 302 shares in the last quarter. Corient Private Wealth LLC grew its holdings in shares of International Paper by 15.7% during the 4th quarter. Corient Private Wealth LLC now owns 69,766 shares of the basic materials company's stock valued at $2,756,000 after purchasing an additional 9,490 shares during the last quarter. Finally, SHP Wealth Management bought a new stake in shares of International Paper during the 4th quarter valued at approximately $38,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.