Champion International Paper (IP) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Champion International Paper (NYSE:IP) from a hold rating to a sell rating in a report published on Tuesday.

According to Zacks, “International Paper operates in various international locations and has significant number of manufacturing facilities in Russia, Brazil, Poland, India, and Turkey. As such, the company is exposed to several economic and political instabilities in the respective regions of the world. Adverse foreign currency translation is likely to strain its bottom line. Moreover, trade protection measures in favor of local producers of competing products, including governmental subsidies, tax benefits and other measures give local producers a competitive advantage over International Paper. The stock has also underperformed the industry in the last three months. However, the company aims to utilize its sound cash flow by investing in capital projects, reducing its total debt and returning a greater proportion of cash to shareholders through increased dividend payouts and share repurchases.”

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Several other equities research analysts also recently weighed in on IP. Bank of America raised shares of Champion International Paper from a neutral rating to a buy rating and set a $66.00 price target for the company in a research report on Tuesday, January 2nd. KeyCorp reissued a hold rating on shares of Champion International Paper in a research report on Tuesday, January 2nd. Wells Fargo reissued an outperform rating and set a $70.00 price target (up previously from $65.00) on shares of Champion International Paper in a research report on Monday, January 8th. Stephens set a $66.00 price target on shares of Champion International Paper and gave the company a hold rating in a research report on Wednesday, January 10th. Finally, BMO Capital Markets reissued a buy rating and set a $70.00 price target on shares of Champion International Paper in a research report on Thursday, January 25th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and seven have given a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $64.46.

Shares of IP opened at $52.17 on Tuesday. The company has a market cap of $22,063.41, a P/E ratio of 14.95, a PEG ratio of 1.19 and a beta of 1.51. The company has a quick ratio of 1.17, a current ratio of 1.62 and a debt-to-equity ratio of 1.66. Champion International Paper has a twelve month low of $49.60 and a twelve month high of $66.94.

Champion International Paper (NYSE:IP) last announced its quarterly earnings results on Thursday, February 1st. The basic materials company reported $1.27 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.19 by $0.08. The company had revenue of $5.71 billion during the quarter, compared to the consensus estimate of $6.01 billion. Champion International Paper had a net margin of 9.36% and a return on equity of 29.05%. The firm’s quarterly revenue was up 14.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.67 earnings per share. sell-side analysts anticipate that Champion International Paper will post 4.72 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, March 15th. Shareholders of record on Wednesday, February 21st were given a $0.475 dividend. This represents a $1.90 dividend on an annualized basis and a yield of 3.64%. The ex-dividend date of this dividend was Tuesday, February 20th. Champion International Paper’s dividend payout ratio (DPR) is presently 54.44%.

A number of large investors have recently bought and sold shares of IP. BTC Capital Management Inc. boosted its stake in shares of Champion International Paper by 2.2% during the 4th quarter. BTC Capital Management Inc. now owns 39,656 shares of the basic materials company’s stock worth $2,305,000 after acquiring an additional 841 shares during the last quarter. Lynch & Associates IN boosted its stake in shares of Champion International Paper by 2.6% during the 4th quarter. Lynch & Associates IN now owns 35,059 shares of the basic materials company’s stock worth $2,031,000 after acquiring an additional 877 shares during the last quarter. Advisor Partners LLC boosted its stake in shares of Champion International Paper by 9.4% during the 4th quarter. Advisor Partners LLC now owns 10,461 shares of the basic materials company’s stock worth $664,000 after acquiring an additional 897 shares during the last quarter. Tarbox Family Office Inc. boosted its stake in shares of Champion International Paper by 7.6% during the 4th quarter. Tarbox Family Office Inc. now owns 12,976 shares of the basic materials company’s stock worth $752,000 after acquiring an additional 911 shares during the last quarter. Finally, Flinton Capital Management LLC boosted its stake in shares of Champion International Paper by 6.1% during the 4th quarter. Flinton Capital Management LLC now owns 16,016 shares of the basic materials company’s stock worth $928,000 after acquiring an additional 924 shares during the last quarter. 82.61% of the stock is owned by institutional investors and hedge funds.

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Champion International Paper Company Profile

International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia. It operates through three segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft.

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