Seaport Res Ptn Downgrades International Paper (NYSE:IP) to Hold

Key Points

• Seaport Res Ptn downgraded International Paper from a "strong-buy" to a "hold" rating, reflecting a cautious outlook for the stock.
• The firm has experienced mixed analyst ratings, with six analysts rating it as a buy and a consensus target price of $55.47.
• International Paper reported $0.20 EPS for the last quarter, missing estimates, despite a year-over-year revenue increase of 42.9%.

International Paper (NYSE:IP - Get Free Report) was downgraded by analysts at Seaport Res Ptn from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts have also commented on IP. Wall Street Zen upgraded shares of International Paper from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Bank of America raised International Paper from a "neutral" rating to a "buy" rating and raised their price target for the company from $55.00 to $57.00 in a report on Thursday, August 28th. Zacks Research downgraded International Paper from a "hold" rating to a "strong sell" rating in a research report on Monday, August 18th. Weiss Ratings restated a "hold (c-)" rating on shares of International Paper in a report on Saturday, September 27th. Finally, JPMorgan Chase & Co. cut International Paper from an "overweight" rating to a "neutral" rating and cut their price target for the company from $55.00 to $54.00 in a report on Tuesday, August 5th. Six analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, International Paper has an average rating of "Hold" and a consensus target price of $55.47.

International Paper Price Performance

Shares of IP stock opened at $45.90 on Monday. The stock's fifty day simple moving average is $47.50 and its 200 day simple moving average is $48.28. International Paper has a one year low of $43.27 and a one year high of $60.36. The firm has a market cap of $24.23 billion, a price-to-earnings ratio of -459.00, a P/E/G ratio of 0.53 and a beta of 1.10. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.33 and a quick ratio of 0.96.

International Paper (NYSE:IP - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The basic materials company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.18). International Paper had a negative net margin of 0.12% and a positive return on equity of 2.63%. The company had revenue of $6.77 billion for the quarter, compared to the consensus estimate of $6.64 billion. During the same period in the previous year, the business posted $0.55 earnings per share. The firm's revenue was up 42.9% compared to the same quarter last year. On average, analysts expect that International Paper will post 2.77 earnings per share for the current fiscal year.

Insider Activity at International Paper

In related news, SVP Joseph R. Saab sold 9,000 shares of the business's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $45.53, for a total transaction of $409,770.00. Following the completion of the sale, the senior vice president directly owned 27,673 shares of the company's stock, valued at $1,259,951.69. The trade was a 24.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.55% of the stock is currently owned by corporate insiders.

Institutional Trading of International Paper

Several institutional investors and hedge funds have recently made changes to their positions in the business. NBC Securities Inc. increased its holdings in International Paper by 187,300.0% in the first quarter. NBC Securities Inc. now owns 1,874 shares of the basic materials company's stock valued at $99,000 after purchasing an additional 1,873 shares during the last quarter. Merit Financial Group LLC grew its position in shares of International Paper by 24.6% during the 1st quarter. Merit Financial Group LLC now owns 8,615 shares of the basic materials company's stock worth $460,000 after buying an additional 1,700 shares during the period. Capital Investment Advisors LLC increased its stake in shares of International Paper by 6.0% in the 1st quarter. Capital Investment Advisors LLC now owns 4,176 shares of the basic materials company's stock valued at $223,000 after acquiring an additional 235 shares during the last quarter. First Citizens Bank & Trust Co. acquired a new stake in shares of International Paper in the 1st quarter valued at approximately $202,000. Finally, Toth Financial Advisory Corp acquired a new stake in shares of International Paper in the 1st quarter valued at approximately $42,000. Institutional investors own 81.95% of the company's stock.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.

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