International Paper (NYSE:IP) Shares Gap Down Following Weak Earnings

Shares of International Paper (NYSE:IPGet Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $57.98, but opened at $55.21. International Paper shares last traded at $55.81, with a volume of 1,612,251 shares traded.

The basic materials company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.05). International Paper had a net margin of 2.25% and a return on equity of 6.49%.

International Paper Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, February 24th will be given a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a yield of 3.24%. The ex-dividend date is Monday, February 24th. International Paper’s payout ratio is 158.12%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on IP. Royal Bank of Canada increased their target price on International Paper from $56.00 to $64.00 and gave the stock an “outperform” rating in a research note on Friday, November 1st. BNP Paribas cut shares of International Paper from a “neutral” rating to an “underperform” rating and set a $48.20 price target on the stock. in a research report on Wednesday, November 13th. Finally, Truist Financial lifted their price objective on shares of International Paper from $61.00 to $65.00 and gave the company a “buy” rating in a report on Monday, January 6th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $51.99.

Get Our Latest Stock Report on International Paper

Insider Buying and Selling

In other news, Director Kathryn D. Sullivan sold 600 shares of the firm’s stock in a transaction dated Friday, November 15th. The stock was sold at an average price of $56.19, for a total transaction of $33,714.00. Following the sale, the director now owns 37,745 shares of the company’s stock, valued at approximately $2,120,891.55. This trade represents a 1.56 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.55% of the stock is owned by insiders.

Hedge Funds Weigh In On International Paper

Hedge funds have recently added to or reduced their stakes in the stock. Brooklyn Investment Group purchased a new position in International Paper during the 3rd quarter worth approximately $25,000. Ashton Thomas Securities LLC acquired a new stake in shares of International Paper in the third quarter valued at approximately $28,000. Legacy Investment Solutions LLC purchased a new position in shares of International Paper during the third quarter worth approximately $28,000. Versant Capital Management Inc increased its holdings in shares of International Paper by 313.3% in the 4th quarter. Versant Capital Management Inc now owns 591 shares of the basic materials company’s stock valued at $32,000 after acquiring an additional 448 shares during the period. Finally, City State Bank raised its position in International Paper by 107.7% in the 4th quarter. City State Bank now owns 675 shares of the basic materials company’s stock valued at $36,000 after purchasing an additional 350 shares during the last quarter. 81.95% of the stock is currently owned by hedge funds and other institutional investors.

International Paper Stock Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.11 and a current ratio of 1.53. The stock has a market cap of $19.85 billion, a PE ratio of 48.85 and a beta of 1.03. The firm’s 50-day moving average is $56.17 and its 200 day moving average is $51.51.

About International Paper

(Get Free Report)

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.

Further Reading

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