International Paper (NYSE:IP) Shares Up 7.6% – Here’s Why
by Sarita Garza · The Markets DailyInternational Paper Company (NYSE:IP – Get Free Report) was up 7.6% during mid-day trading on Friday . The company traded as high as $41.06 and last traded at $40.7820. 6,000,260 shares changed hands during mid-day trading, a decline of 11% from the average daily volume of 6,756,895 shares. The stock had previously closed at $37.91.
Analysts Set New Price Targets
IP has been the topic of a number of analyst reports. Zacks Research upgraded shares of International Paper from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Citigroup raised their price target on International Paper from $36.00 to $43.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Wells Fargo & Company boosted their price objective on International Paper from $39.00 to $42.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Seaport Research Partners upgraded International Paper from a “neutral” rating to a “buy” rating and set a $39.00 target price for the company in a research report on Friday, May 1st. Finally, 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. Eight equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, International Paper presently has a consensus rating of “Moderate Buy” and a consensus price target of $44.31.
Get Our Latest Research Report on IP
International Paper Price Performance
The firm has a market cap of $22.06 billion, a P/E ratio of -6.55 and a beta of 0.94. The firm’s fifty day simple moving average is $35.44 and its 200 day simple moving average is $37.96. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.94 and a current ratio of 1.21.
International Paper (NYSE:IP – Get Free Report) last posted its earnings results on Thursday, April 30th. The basic materials company reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.03). The firm had revenue of $5.97 billion during the quarter, compared to analysts’ expectations of $6.02 billion. International Paper had a negative return on equity of 0.49% and a negative net margin of 13.42%.International Paper’s quarterly revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.17 earnings per share. As a group, analysts forecast that International Paper Company will post 1.39 earnings per share for the current year.
International Paper Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be issued a $0.4625 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 4.4%. International Paper’s dividend payout ratio (DPR) is -29.09%.
Insiders Place Their Bets
In other International Paper news, Director Scott Tozier purchased 10,000 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average price of $31.30 per share, with a total value of $313,000.00. Following the completion of the purchase, the director directly owned 10,025 shares in the company, valued at $313,782.50. This trade represents a 40,000.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 0.21% of the company’s stock.
Institutional Investors Weigh In On International Paper
Several hedge funds have recently made changes to their positions in the company. MCF Advisors LLC lifted its position in shares of International Paper by 36.7% in the 4th quarter. MCF Advisors LLC now owns 853 shares of the basic materials company’s stock worth $34,000 after purchasing an additional 229 shares during the period. Rothschild Investment LLC raised its stake in International Paper by 4.2% in the 4th quarter. Rothschild Investment LLC now owns 5,993 shares of the basic materials company’s stock worth $236,000 after acquiring an additional 242 shares during the last quarter. International Private Wealth Advisors LLC lifted its position in International Paper by 4.1% during the 4th quarter. International Private Wealth Advisors LLC now owns 6,175 shares of the basic materials company’s stock worth $243,000 after acquiring an additional 243 shares during the period. Independent Advisor Alliance increased its holdings in shares of International Paper by 3.3% in the fourth quarter. Independent Advisor Alliance now owns 7,750 shares of the basic materials company’s stock valued at $305,000 after purchasing an additional 244 shares during the period. Finally, Horizon Investments LLC increased its holdings in shares of International Paper by 3.3% in the fourth quarter. Horizon Investments LLC now owns 8,456 shares of the basic materials company’s stock valued at $333,000 after purchasing an additional 267 shares during the period. 81.95% of the stock is currently owned by hedge funds and other 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.