International Paper (NYSE:IP) Cut to Strong Sell at Zacks Research

Zacks Research downgraded shares of International Paper (NYSE:IP) from a hold rating to a strong sell rating in a research report sent to investors on Monday morning,Zacks.com reports.

Several other equities analysts have also issued reports on IP. Stifel Nicolaus set a $57.80 price target on shares of International Paper and gave the company a “buy” rating in a report on Friday, October 17th. Weiss Ratings reiterated a “hold (c-)” rating on shares of International Paper in a report on Wednesday, November 5th. Citigroup decreased their target price on International Paper from $55.00 to $46.00 and set a “buy” rating for the company in a research note on Monday, November 3rd. Seaport Res Ptn downgraded International Paper from a “strong-buy” rating to a “hold” rating in a report on Monday, October 6th. Finally, Bank of America upgraded International Paper from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $55.00 to $57.00 in a report on Thursday, August 28th. Seven equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, International Paper presently has a consensus rating of “Hold” and an average target price of $50.92.

International Paper Stock Performance

Shares of IP stock opened at $38.19 on Monday. The stock has a market cap of $20.17 billion, a PE ratio of -381.90, a price-to-earnings-growth ratio of 0.54 and a beta of 1.12. The stock has a 50-day moving average of $44.92 and a 200-day moving average of $47.23. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.33 and a quick ratio of 0.96. International Paper has a one year low of $35.79 and a one year high of $60.36.

International Paper (NYSE:IP) last issued its quarterly earnings data on Thursday, October 30th. The basic materials company reported ($0.43) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.96). International Paper had a negative net margin of 0.12% and a positive return on equity of 2.63%. The firm had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.76 billion. During the same quarter in the prior year, the firm posted $0.33 EPS. The firm’s revenue for the quarter was up 56.4% compared to the same quarter last year. As a group, sell-side analysts expect that International Paper will post 2.77 earnings per share for the current year.

International Paper Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 16th. Stockholders of record on Friday, November 14th will be issued a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a dividend yield of 4.8%. International Paper’s dividend payout ratio (DPR) is -70.88%.

Insider Buying and Selling at International Paper

In related news, SVP Joseph R. Saab sold 9,000 shares of the stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $45.53, for a total transaction of $409,770.00. Following the completion of the transaction, the senior vice president directly owned 27,673 shares in the company, valued at approximately $1,259,951.69. This trade represents a 24.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.35% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of IP. Vanguard Group Inc. raised its stake in shares of International Paper by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 64,047,079 shares of the basic materials company’s stock worth $2,971,784,000 after purchasing an additional 167,889 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in International Paper by 8.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 51,798,017 shares of the basic materials company’s stock worth $2,763,426,000 after buying an additional 4,201,422 shares during the last quarter. State Street Corp increased its holdings in International Paper by 3.2% during the second quarter. State Street Corp now owns 29,386,616 shares of the basic materials company’s stock worth $1,376,175,000 after buying an additional 902,741 shares during the last quarter. Bank of New York Mellon Corp raised its position in International Paper by 9.3% during the second quarter. Bank of New York Mellon Corp now owns 18,737,896 shares of the basic materials company’s stock worth $877,496,000 after acquiring an additional 1,592,411 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in International Paper by 2.3% in the second quarter. Geode Capital Management LLC now owns 13,340,382 shares of the basic materials company’s stock valued at $622,133,000 after acquiring an additional 294,296 shares during the last quarter. 81.95% of the stock is currently owned by institutional investors.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.