International Paper (NYSE:IP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The brokerage currently has a $53.00 price target on the basic materials company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 15.37% from the stock’s previous close.
According to Zacks, “Backed by solid commercial performance and continued healthy demand across its businesses, International Paper is positioned to deliver improved results in the fourth quarter and 2019 as well. 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.”
IP has been the topic of several other reports. Goldman Sachs Group lowered shares of International Paper from a “buy” rating to a “neutral” rating and set a $53.00 target price on the stock. in a report on Wednesday, October 10th. Royal Bank of Canada reiterated a “buy” rating and issued a $55.00 target price on shares of International Paper in a report on Tuesday, October 23rd. Deutsche Bank set a $55.00 target price on shares of International Paper and gave the stock a “hold” rating in a report on Monday, October 29th. Seaport Global Securities started coverage on shares of International Paper in a report on Tuesday, October 23rd. They issued a “neutral” rating on the stock. Finally, Barclays cut their target price on shares of International Paper from $45.00 to $44.00 and set an “underweight” rating on the stock in a report on Monday, October 29th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have assigned a buy rating to the company. International Paper currently has an average rating of “Hold” and a consensus target price of $58.21.
Shares of IP stock opened at $45.94 on Tuesday. International Paper has a 52-week low of $39.60 and a 52-week high of $66.94. The company has a market capitalization of $18.71 billion, a price-to-earnings ratio of 13.16, a price-to-earnings-growth ratio of 0.94 and a beta of 1.52. The company has a current ratio of 1.59, a quick ratio of 1.13 and a debt-to-equity ratio of 1.52.
International Paper (NYSE:IP) last announced its quarterly earnings data on Thursday, October 25th. The basic materials company reported $1.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.47 by $0.09. International Paper had a net margin of 13.68% and a return on equity of 29.75%. The firm had revenue of $5.90 billion for the quarter, compared to analysts’ expectations of $5.90 billion. As a group, equities analysts anticipate that International Paper will post 5.31 earnings per share for the current year.
International Paper announced that its Board of Directors has approved a share repurchase program on Tuesday, October 9th that authorizes the company to buyback $430.00 million in outstanding shares. This buyback authorization authorizes the basic materials company to purchase up to 2.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
In related news, SVP John V. Sims sold 4,725 shares of the firm’s stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $54.35, for a total value of $256,803.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jeanmichel Ribieras sold 10,000 shares of the firm’s stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $54.20, for a total transaction of $542,000.00. The disclosure for this sale can be found here. Company insiders own 0.32% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. grew its position in International Paper by 0.5% in the second quarter. BlackRock Inc. now owns 36,790,627 shares of the basic materials company’s stock valued at $1,916,056,000 after purchasing an additional 201,122 shares in the last quarter. Vanguard Group Inc. grew its position in International Paper by 0.3% in the third quarter. Vanguard Group Inc. now owns 31,253,119 shares of the basic materials company’s stock valued at $1,536,091,000 after purchasing an additional 101,749 shares in the last quarter. LSV Asset Management grew its position in International Paper by 10.3% in the third quarter. LSV Asset Management now owns 4,723,998 shares of the basic materials company’s stock valued at $232,184,000 after purchasing an additional 439,685 shares in the last quarter. Morgan Stanley grew its position in International Paper by 8.7% in the third quarter. Morgan Stanley now owns 3,542,394 shares of the basic materials company’s stock valued at $174,109,000 after purchasing an additional 284,827 shares in the last quarter. Finally, Schwab Charles Investment Management Inc. grew its position in International Paper by 2.8% in the second quarter. Schwab Charles Investment Management Inc. now owns 2,715,616 shares of the basic materials company’s stock valued at $141,430,000 after purchasing an additional 73,282 shares in the last quarter. 81.00% of the stock is owned by institutional investors and hedge funds.
About International Paper
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.
Recommended Story: What are the most popular ETFs
Get a free copy of the Zacks research report on International Paper (IP)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for International Paper Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for International Paper and related companies with MarketBeat.com's FREE daily email newsletter.