International Paper (NYSE:IP) Downgraded by Wall Street Zen to Sell

Wall Street Zen cut shares of International Paper (NYSE:IP) from a hold rating to a sell rating in a research note published on Tuesday morning.

A number of other research analysts have also recently weighed in on IP. Seaport Research Partners restated a “buy” rating and issued a $46.00 price objective on shares of International Paper in a report on Wednesday, August 12th. Zacks Research upgraded shares of International Paper from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. Wells Fargo & Company raised their price target on shares of International Paper from $42.00 to $46.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Loop Capital set a $61.00 price target on shares of International Paper in a research note on Tuesday, July 28th. Finally, Citigroup upped their price objective on International Paper from $43.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Nine analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, International Paper currently has a consensus rating of “Moderate Buy” and an average price target of $48.75.

International Paper Price Performance

IP opened at $41.13 on Tuesday. The stock’s 50-day moving average price is $39.40 and its 200 day moving average price is $37.87. International Paper has a 12-month low of $29.26 and a 12-month high of $50.25. The firm has a market cap of $21.78 billion, a price-to-earnings ratio of -6.31 and a beta of 0.94. The company has a current ratio of 1.10, a quick ratio of 0.84 and a debt-to-equity ratio of 0.57.

International Paper (NYSE:IP) last released its earnings results on Thursday, July 30th. The basic materials company reported $0.04 earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.08. The company had revenue of $6 billion during the quarter, compared to the consensus estimate of $6.19 billion. International Paper had a negative return on equity of 1.09% and a negative net margin of 14.20%.International Paper’s revenue was down 11.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.20 EPS. As a group, sell-side analysts expect that International Paper will post 1.34 earnings per share for the current year.

International Paper Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be paid a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Friday, August 14th. International Paper’s dividend payout ratio is presently -28.37%.

Insider Activity at International Paper

In related news, VP William Thomas Hamic sold 24,500 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $41.20, for a total value of $1,009,400.00. Following the sale, the vice president owned 106,952 shares of the company’s stock, valued at $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of International Paper stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total transaction of $146,860.00. Following the completion of the transaction, the chief accounting officer owned 34,248 shares of the company’s stock, valued at $1,437,046.08. This represents a 9.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.21% of the stock is owned by company insiders.

Institutional Investors Weigh In On International Paper

Several institutional investors have recently modified their holdings of IP. BlackRock Inc. purchased a new position in International Paper in the second quarter valued at $1,940,896,000. California State Teachers Retirement System lifted its holdings in International Paper by 3,696.7% during the 2nd quarter. California State Teachers Retirement System now owns 22,244,418 shares of the basic materials company’s stock worth $847,512,000 after buying an additional 21,658,528 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in shares of International Paper during the 2nd quarter worth about $689,498,000. Capital International Investors boosted its position in shares of International Paper by 29.4% during the 4th quarter. Capital International Investors now owns 63,413,335 shares of the basic materials company’s stock worth $2,498,013,000 after acquiring an additional 14,422,616 shares in the last quarter. Finally, Atlas FRM LLC purchased a new position in shares of International Paper in the 2nd quarter valued at about $374,904,000,000. 81.95% of the stock is owned by hedge funds and other institutional investors.

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.