Truist Financial Issues Pessimistic Forecast for International Paper (NYSE:IP) Stock Price

Key Points

• Truist Financial cut its price target on International Paper from $48 to $44 but kept a "buy" rating, implying about a 20% upside; the street consensus is a "Moderate Buy" with a target near $45.98 (8 Buys, 5 Holds, 1 Sell).
• Shares trade around $36.64 and the company recently missed quarterly EPS (‑$0.08 vs. $0.28 est.) despite revenue rising ~53% year-over-year, while insiders—including the CEO—have been buying stock (CEO purchased 50,000 shares; insiders acquired 76,092 shares over the last 90 days).

International Paper (NYSE:IP - Get Free Report) had its target price reduced by analysts at Truist Financial from $48.00 to $44.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the basic materials company's stock. Truist Financial's price objective suggests a potential upside of 20.10% from the company's previous close.

A number of other brokerages have also weighed in on IP. Deutsche Bank Aktiengesellschaft initiated coverage on International Paper in a research note on Wednesday, April 1st. They set a "hold" rating and a $38.00 target price on the stock. Stifel Nicolaus cut their target price 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. Wells Fargo & Company decreased their price target on shares of International Paper from $40.00 to $38.00 and set an "equal weight" rating on the stock in a report on Friday, March 20th. Jefferies Financial Group upped their price target on shares of International Paper from $47.00 to $48.00 and gave the company a "buy" rating in a research report on Thursday, January 22nd. Finally, Royal Bank Of Canada decreased their target price on shares of International Paper from $55.00 to $54.00 and set an "outperform" rating for the company in a research note on Friday, January 30th. Eight investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $45.98.

International Paper Price Performance

Shares of NYSE IP traded up $0.10 during mid-day trading on Wednesday, reaching $36.64. The company had a trading volume of 365,235 shares, compared to its average volume of 7,047,253. The stock has a market cap of $19.40 billion, a PE ratio of -5.46 and a beta of 1.14. International Paper has a 1-year low of $33.57 and a 1-year high of $56.13. The company has a current ratio of 1.28, a quick ratio of 1.02 and a debt-to-equity ratio of 0.60. The company has a 50-day moving average price of $40.45 and a two-hundred day moving average price of $41.05.

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

Insider Buying and Selling at International Paper

In related news, CEO Andrew K. Silvernail purchased 50,000 shares of the company's stock in a transaction on Friday, January 30th. The stock was acquired at an average cost of $39.98 per share, for a total transaction of $1,999,000.00. Following the completion of the transaction, the chief executive officer directly owned 50,000 shares in the company, valued at approximately $1,999,000. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, Director Anders Gustafsson purchased 13,217 shares of the stock in a transaction on Thursday, March 12th. The shares were purchased at an average price of $37.83 per share, with a total value of $499,999.11. Following the acquisition, the director directly owned 26,092 shares in the company, valued at $987,060.36. This represents a 102.66% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have acquired 76,092 shares of company stock worth $2,999,064. Insiders own 0.21% of the company's stock.

Institutional Trading of International Paper

Institutional investors and hedge funds have recently bought and sold shares of the business. McIlrath & Eck LLC raised its position in International Paper by 452.6% during the 4th quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock worth $25,000 after buying an additional 525 shares during the last quarter. MV Capital Management Inc. acquired a new stake in International Paper in the 4th quarter valued at about $25,000. Sound Income Strategies LLC grew its stake in International Paper by 94.0% in the 4th quarter. Sound Income Strategies LLC now owns 710 shares of the basic materials company's stock valued at $31,000 after acquiring an additional 344 shares during the last quarter. DV Equities LLC acquired a new stake in International Paper in the 4th quarter valued at about $29,000. Finally, Kelleher Financial Advisors acquired a new stake in International Paper in the 3rd quarter valued at about $36,000. Hedge funds and other institutional investors 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.

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