International Paper Co. (IP) Upgraded to “Strong-Buy” at Zacks Investment Research
International Paper Co. (NYSE:IP) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Monday. The firm currently has a $55.00 price objective on the stock. Zacks Investment Research’s price objective indicates a potential upside of 14.63% from the company’s previous close.
According to Zacks, “International Paper is undergoing restructuring initiatives to transform itself into a core packaging firm. The acquisition of Weyerhaeuser’s pulp business will strengthen International Paper’s position in the global fluff pulp market and augment its operating cash flow. In addition, the company expects the transaction to generate annual synergies of approximately $175 million by 2018 along with a higher flexibility to manage a wide portfolio of products through superior R&D capabilities and priceless patent portfolio. In North America, the company also envisions a large opportunity within its industrial packaging businesses. International Paper has a positive earnings surprise history, having beaten estimates in each of the trailing four quarters. Earnings estimates have remained steady over the last week. However, huge pension obligations and volatility in raw material prices could reduce its profitability.”
Other analysts have also recently issued reports about the company. Jefferies Group lifted their price objective on International Paper from $47.00 to $49.00 and gave the company a “hold” rating in a research report on Friday, July 29th. Deutsche Bank AG lifted their price objective on International Paper from $40.00 to $42.00 and gave the company a “hold” rating in a research report on Wednesday, August 10th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $42.00 price objective on shares of International Paper in a research report on Friday, July 29th. Vetr cut International Paper from a “strong-buy” rating to a “buy” rating and set a $46.00 price objective on the stock. in a research report on Wednesday, June 29th. Finally, Citigroup Inc. lifted their price objective on International Paper from $47.00 to $49.00 and gave the company a “neutral” rating in a research report on Tuesday, August 2nd. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. International Paper currently has a consensus rating of “Hold” and an average price target of $47.71.
Shares of International Paper (NYSE:IP) opened at 47.98 on Monday. The stock has a market capitalization of $19.73 billion, a P/E ratio of 25.99 and a beta of 1.55. International Paper has a 12 month low of $32.50 and a 12 month high of $49.90. The company’s 50 day moving average price is $48.00 and its 200-day moving average price is $43.98.
International Paper (NYSE:IP) last posted its earnings results on Thursday, July 28th. The company reported $0.92 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.84 by $0.08. The company had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.32 billion. International Paper had a return on equity of 35.41% and a net margin of 3.58%. International Paper’s quarterly revenue was down 6.9% on a year-over-year basis. During the same period last year, the firm earned $0.97 earnings per share. Equities analysts predict that International Paper will post $3.49 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Monday, August 15th were issued a $0.44 dividend. The ex-dividend date of this dividend was Thursday, August 11th. This represents a $1.76 dividend on an annualized basis and a yield of 3.67%. International Paper’s payout ratio is currently 94.12%.
In related news, insider Thomas G. Kadien sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, September 15th. The shares were sold at an average price of $47.86, for a total value of $478,600.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Carol L. Roberts sold 12,256 shares of the business’s stock in a transaction that occurred on Monday, August 8th. The stock was sold at an average price of $46.20, for a total transaction of $566,227.20. The disclosure for this sale can be found here. 0.64% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. Point View Wealth Management Inc. raised its position in shares of International Paper by 0.4% in the second quarter. Point View Wealth Management Inc. now owns 7,303 shares of the company’s stock worth $310,000 after buying an additional 29 shares during the last quarter. Nuveen Asset Management LLC raised its stake in shares of International Paper by 0.3% in the second quarter. Nuveen Asset Management LLC now owns 27,060 shares of the company’s stock worth $1,147,000 after buying an additional 73 shares in the last quarter. SOUTH STATE Corp raised its stake in shares of International Paper by 0.7% in the second quarter. SOUTH STATE Corp now owns 13,050 shares of the company’s stock worth $553,000 after buying an additional 91 shares in the last quarter. Wetherby Asset Management Inc. raised its stake in shares of International Paper by 1.7% in the second quarter. Wetherby Asset Management Inc. now owns 5,891 shares of the company’s stock worth $249,000 after buying an additional 98 shares in the last quarter. Finally, Bollard Group LLC raised its stake in shares of International Paper by 1.0% in the second quarter. Bollard Group LLC now owns 9,602 shares of the company’s stock worth $407,000 after buying an additional 99 shares in the last quarter. Institutional investors own 81.73% of the company’s stock.
About International Paper
International Paper Company (International Paper) is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company operates in three segments: Industrial Packaging, Printing Papers and Consumer Packaging.
Receive News & Stock Ratings for International Paper Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for International Paper Co. and related stocks with our FREE daily email newsletter.