UBS Group Has Lowered Expectations for International Paper (NYSE:IP) Stock Price

Key Points

• UBS lowered its price target on International Paper to $32 from $40 while keeping a "neutral" rating, a target that implies roughly a 2.36% downside from the stock's prior close.
• Most analysts remain more bullish overall — International Paper has a consensus rating of "Moderate Buy" with an average target of $43.73 (nine Buys, three Holds, two Sells), highlighting a split among firms on outlook.
• The company recently missed quarterly EPS estimates (reported $0.15 vs. $0.18 expected), shows a negative net margin and negative PE (-5.16), trades around $32.77 with a 12‑month range of $29.45–$56.13, and has seen insider purchases in recent months.

International Paper (NYSE:IP - Get Free Report) had its price target reduced by equities research analysts at UBS Group from $40.00 to $32.00 in a research report issued to clients and investors on Monday,MarketScreener reports. The brokerage currently has a "neutral" rating on the basic materials company's stock. UBS Group's price objective would indicate a potential downside of 2.36% from the stock's previous close.

IP has been the subject of a number of other research reports. Jefferies Financial Group raised their price target on shares of International Paper from $47.00 to $48.00 and gave the stock a "buy" rating in a research note on Thursday, January 22nd. JPMorgan Chase & Co. cut their price target on shares of International Paper from $46.00 to $43.00 and set a "neutral" rating for the company in a research note on Friday. Royal Bank Of Canada cut their price target on shares of International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research note on Friday. Wells Fargo & Company upgraded shares of International Paper from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $38.00 to $39.00 in a research note on Monday. Finally, BNP Paribas Exane cut their price target on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Nine research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, International Paper currently has a consensus rating of "Moderate Buy" and an average target price of $43.73.

International Paper Stock Up 3.2%

NYSE IP opened at $32.77 on Monday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.94 and a current ratio of 1.21. The firm has a 50-day simple moving average of $37.25 and a 200 day simple moving average of $40.04. International Paper has a twelve month low of $29.45 and a twelve month high of $56.13. The stock has a market cap of $17.35 billion, a PE ratio of -5.16 and a beta of 0.93.

International Paper (NYSE:IP - Get Free Report) last released its earnings results on Thursday, April 30th. The basic materials company reported $0.15 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.03). International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The company had revenue of $5.97 billion during the quarter, compared to the consensus estimate of $6.02 billion. During the same quarter in the previous year, the business posted $0.17 EPS. The firm's quarterly revenue was up 13.4% on a year-over-year basis. On average, research analysts forecast that International Paper will post 1.59 EPS for the current year.

Insider Buying and Selling

In related news, Director Anders Gustafsson purchased 13,217 shares of the stock in a transaction that occurred on Thursday, March 12th. The stock was acquired at an average price of $37.83 per share, with a total value of $499,999.11. Following the completion of the acquisition, the director directly owned 26,092 shares in the company, valued at approximately $987,060.36. This trade represents a 102.66% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Scott Tozier purchased 10,000 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was bought at an average cost of $31.30 per share, with a total value of $313,000.00. Following the acquisition, the director owned 10,025 shares of the company's stock, valued at $313,782.50. This represents a 40,000.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders purchased 36,092 shares of company stock valued at $1,313,064. 0.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Paper

Hedge funds and other institutional investors have recently bought and sold shares of the business. AE Wealth Management LLC boosted its stake in International Paper by 8.5% in the third quarter. AE Wealth Management LLC now owns 332,310 shares of the basic materials company's stock valued at $15,419,000 after acquiring an additional 26,146 shares during the last quarter. Caprock Group LLC bought a new position in shares of International Paper during the third quarter worth $2,340,000. Icon Advisers Inc. Co. bought a new position in shares of International Paper during the third quarter worth $4,853,000. Advisors Preferred LLC bought a new position in shares of International Paper during the third quarter worth $1,181,000. Finally, Barclays PLC boosted its position in shares of International Paper by 12.4% during the third quarter. Barclays PLC now owns 2,348,177 shares of the basic materials company's stock worth $108,955,000 after purchasing an additional 259,371 shares in the last quarter. 81.95% of the stock is owned by institutional investors.

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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