Weekly Research Analysts’ Ratings Changes for International Paper (IP)

Several brokerages have updated their recommendations and price targets on shares of International Paper (NYSE: IP) in the last few weeks:

  • 10/29/2018 – International Paper had its price target lowered by analysts at Barclays PLC from $45.00 to $44.00. They now have an “underweight” rating on the stock.
  • 10/29/2018 – International Paper was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “International Paper’s third-quarter 2018 adjusted earnings and revenues both beat the respective Zacks Consensus Estimate. The company delivered improved year-over-year performances in both its top and bottom line aided by solid commercial performance and continued healthy demand across its businesses. Backed by these factors, the company is positioned to deliver improved results in the fourth quarter and 2019 as well. However, elevated input costs and distribution costs will dent near-term margins. The stock has underperformed the industry over the past year. Nevertheless, International Paper will benefit from its restructuring initiatives, and significant investments to improve its North American containerboard mill system and enhance product quality. The company expects the acquisition of Weyerhaeuser’s pulp business to strengthen its position in the global fluff pulp market and augment its operating cash flow.”
  • 10/29/2018 – International Paper was given a new $55.00 price target on by analysts at Deutsche Bank AG. They now have a “hold” rating on the stock.
  • 10/29/2018 – International Paper had its price target lowered by analysts at Argus from $70.00 to $55.00. They now have a “buy” rating on the stock.
  • 10/23/2018 – International Paper is now covered by analysts at Seaport Global Securities. They set a “neutral” rating on the stock.
  • 10/23/2018 – International Paper had its “buy” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $55.00 price target on the stock.
  • 10/11/2018 – International Paper had its price target lowered by analysts at Citigroup Inc from $67.00 to $51.00. They now have a “buy” rating on the stock.
  • 10/10/2018 – International Paper was downgraded by analysts at Goldman Sachs Group Inc from a “buy” rating to a “neutral” rating. They now have a $53.00 price target on the stock.
  • 10/9/2018 – International Paper was downgraded by analysts at BMO Capital Markets from an “outperform” rating to a “market perform” rating. They now have a $51.00 price target on the stock, down previously from $66.00.
  • 10/4/2018 – International Paper was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “The company depends heavily on raw materials such as wood fiber, purchased in the form of pulpwood, wood chips and old corrugated containers (OCC), and certain chemicals, including caustic soda and starch, and energy sources, principally natural gas, coal and fuel oil.  Elevated input costs will suppress margins in the near term. Further, distribution costs are trending upwards lately due to a very tight truck and rail availability as well as higher diesel fuel cost. This will affect the company’s margins in the near term. Also, International Paper has a huge burden of pension obligations. Shares of International Paper have underperformed the industry, over the past year.”
  • 10/3/2018 – International Paper was downgraded by analysts at ValuEngine from a “sell” rating to a “strong sell” rating.
  • 9/21/2018 – International Paper was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Driven by healthy demand across its global operations, the company anticipates delivering a second consecutive year of strong earnings growth in 2018. International Paper is undergoing restructuring initiatives to transform itself into a core packaging company. It also intends to invest significantly to improve its North American containerboard mill system, enhancing product quality and reducing costs. The company expects the acquisition of Weyerhaeuser’s pulp business to generate annual synergies of approximately $175 million by the end of 2018. However, elevated input costs and higher distribution costs will likely affect the company’s margins in the near term. The stock has underperformed the industry over the past year. “
  • 9/11/2018 – International Paper was given a new $57.00 price target on by analysts at Stephens. They now have a “hold” rating on the stock.

Shares of NYSE:IP traded up $0.46 during trading hours on Tuesday, hitting $46.63. The company’s stock had a trading volume of 4,557,288 shares, compared to its average volume of 2,983,079. International Paper Co has a 52 week low of $39.60 and a 52 week high of $66.94. The company has a debt-to-equity ratio of 1.45, a quick ratio of 1.13 and a current ratio of 1.59. The firm has a market cap of $18.62 billion, a P/E ratio of 13.36, a P/E/G ratio of 0.90 and a beta of 1.53.

International Paper (NYSE:IP) last posted its quarterly earnings results on Thursday, October 25th. The basic materials company reported $1.56 EPS for the quarter, beating the consensus estimate of $1.47 by $0.09. International Paper had a net margin of 13.68% and a return on equity of 29.42%. The business had revenue of $5.90 billion during the quarter, compared to analyst estimates of $5.90 billion. On average, research analysts predict that International Paper Co will post 5.31 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 14th. Stockholders of record on Thursday, November 15th will be issued a $0.50 dividend. The ex-dividend date is Wednesday, November 14th. This represents a $2.00 annualized dividend and a dividend yield of 4.29%. This is a positive change from International Paper’s previous quarterly dividend of $0.48. International Paper’s payout ratio is currently 54.44%.

In other news, insider Jeanmichel Ribieras sold 10,000 shares of the business’s stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $54.20, for a total value of $542,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Timothy S. Nicholls sold 17,000 shares of the business’s stock in a transaction dated Tuesday, August 28th. The shares were sold at an average price of $52.53, for a total transaction of $893,010.00. Following the completion of the sale, the insider now owns 108,538 shares of the company’s stock, valued at approximately $5,701,501.14. The disclosure for this sale can be found here. In the last 90 days, insiders sold 31,725 shares of company stock valued at $1,691,814. Company insiders own 0.32% of the company’s stock.

Institutional investors have recently modified their holdings of the company. BlackRock Inc. grew its position in International Paper by 0.5% during the 2nd quarter. BlackRock Inc. now owns 36,790,627 shares of the basic materials company’s stock worth $1,916,056,000 after purchasing an additional 201,122 shares during the last quarter. LSV Asset Management grew its position in International Paper by 10.3% during the 3rd quarter. LSV Asset Management now owns 4,723,998 shares of the basic materials company’s stock worth $232,184,000 after purchasing an additional 439,685 shares during the last quarter. Schwab Charles Investment Management Inc. grew its position in International Paper by 2.8% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 2,715,616 shares of the basic materials company’s stock worth $141,430,000 after purchasing an additional 73,282 shares during the last quarter. Levin Capital Strategies L.P. grew its position in International Paper by 25.9% during the 3rd quarter. Levin Capital Strategies L.P. now owns 2,351,655 shares of the basic materials company’s stock worth $115,584,000 after purchasing an additional 484,156 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its position in International Paper by 16.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,921,940 shares of the basic materials company’s stock worth $100,100,000 after purchasing an additional 269,329 shares during the last quarter. 82.24% of the stock is currently owned by hedge funds and other institutional investors.

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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