International Paper (NYSE:IP) Sets New 12-Month Low – Here’s Why

International Paper Company (NYSE:IP)’s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $35.76 and last traded at $35.79, with a volume of 1013083 shares changing hands. The stock had previously closed at $36.39.

Wall Street Analysts Forecast Growth

IP has been the subject of several recent research reports. Weiss Ratings cut International Paper from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday. Jefferies Financial Group dropped their price target on shares of International Paper from $61.00 to $59.00 and set a “buy” rating for the company in a research note on Friday, September 26th. Wells Fargo & Company cut their price objective on shares of International Paper from $44.00 to $36.00 and set an “underweight” rating on the stock in a report on Friday, October 31st. Citigroup lowered their target price on shares of International Paper from $55.00 to $46.00 and set a “buy” rating for the company in a report on Monday, November 3rd. Finally, Zacks Research downgraded International Paper from a “hold” rating to a “strong sell” rating in a research note on Monday, November 10th. Seven equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, International Paper currently has an average rating of “Hold” and an average target price of $50.92.

International Paper Price Performance

The stock has a market cap of $18.83 billion, a price-to-earnings ratio of -356.60, a price-to-earnings-growth ratio of 0.54 and a beta of 1.12. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.96 and a current ratio of 1.33. The company has a 50-day simple moving average of $43.87 and a two-hundred day simple moving average of $46.91.

International Paper (NYSE:IP) last released 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). The business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.76 billion. International Paper had a negative net margin of 0.12% and a positive return on equity of 2.63%. The business’s quarterly revenue was up 56.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.33 earnings per share. As a group, equities research analysts forecast that International Paper Company will post 2.77 EPS for the current year.

International Paper Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 16th. Shareholders of record on Friday, November 14th will be given a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a yield of 5.2%. International Paper’s dividend payout ratio is currently -70.88%.

Insider Activity at International Paper

In other news, SVP Joseph R. Saab sold 9,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $45.53, for a total value of $409,770.00. Following the sale, 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.55% of the company’s stock.

Institutional Investors Weigh In On International Paper

Several hedge funds have recently modified their holdings of the company. Rise Advisors LLC boosted its stake in shares of International Paper by 281.3% during the first quarter. Rise Advisors LLC now owns 469 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 346 shares in the last quarter. AlphaQuest LLC grew its holdings in International Paper by 63,400.0% during the 2nd quarter. AlphaQuest LLC now owns 635 shares of the basic materials company’s stock worth $30,000 after acquiring an additional 634 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. acquired a new position in International Paper in the 2nd quarter valued at approximately $33,000. Zions Bancorporation National Association UT acquired a new position in International Paper in the 1st quarter valued at approximately $34,000. Finally, Elevation Point Wealth Partners LLC bought a new position in shares of International Paper during the second quarter valued at $35,000. Institutional investors and hedge funds own 81.95% of the company’s stock.

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.