International Paper (NYSE:IP) Sets New 1-Year Low – What’s Next?

International Paper Company (NYSE:IP) hit a new 52-week low during trading on Tuesday . The company traded as low as $29.44 and last traded at $29.6030, with a volume of 350799 shares changing hands. The stock had previously closed at $30.40.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Seaport Research Partners upgraded shares of 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. UBS Group reduced their target price on shares of International Paper from $40.00 to $32.00 and set a “neutral” rating for the company in a research report on Monday, May 4th. Citigroup reduced their target price on shares of International Paper from $44.00 to $36.00 and set a “buy” rating for the company in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft assumed coverage on shares of International Paper in a research report on Wednesday, April 1st. They issued a “hold” rating and a $38.00 target price for the company. Finally, Truist Financial reduced their target price on shares of International Paper from $48.00 to $44.00 and set a “buy” rating for the company in a research report on Wednesday, April 15th. Nine investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $43.73.

International Paper Price Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 1.21 and a quick ratio of 0.94. The stock’s fifty day moving average is $34.98 and its 200-day moving average is $38.94. The stock has a market cap of $15.61 billion, a PE ratio of -4.64 and a beta of 0.93.

International Paper (NYSE:IP) last announced its quarterly earnings data on Thursday, April 30th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $5.97 billion during the quarter, compared to analysts’ expectations of $6.02 billion. During the same period in the prior year, the company posted $0.17 EPS. The company’s revenue for the quarter was up 13.4% compared to the same quarter last year. As a group, equities analysts anticipate that International Paper Company will post 1.43 EPS for the current year.

International Paper Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be paid a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a yield of 6.3%. The ex-dividend date of this dividend is Friday, May 22nd. International Paper’s dividend payout ratio (DPR) is -29.09%.

Insider Activity

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. AE Wealth Management LLC boosted its stake in International Paper by 8.5% during the third quarter. AE Wealth Management LLC now owns 332,310 shares of the basic materials company’s stock worth $15,419,000 after buying an additional 26,146 shares during the period. Caprock Group LLC acquired a new stake in shares of International Paper during the third quarter worth about $2,340,000. Icon Advisers Inc. Co. acquired a new stake in shares of International Paper during the third quarter worth about $4,853,000. Advisors Preferred LLC acquired a new stake in shares of International Paper during the third quarter worth about $1,181,000. Finally, Barclays PLC lifted 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. Hedge funds and other institutional investors own 81.95% of the company’s stock.

International Paper Company Profile

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.