International Paper (IP) Sets New 52-Week Low After Analyst Downgrade
International Paper Co (NYSE:IP)’s share price hit a new 52-week low during mid-day trading on Thursday after Citigroup lowered their price target on the stock from $67.00 to $51.00. Citigroup currently has a buy rating on the stock. International Paper traded as low as $43.22 and last traded at $43.48, with a volume of 288361 shares traded. The stock had previously closed at $43.53.
Several other equities analysts have also recently issued reports on the stock. Goldman Sachs Group cut shares of International Paper from a “buy” rating to a “neutral” rating and set a $53.00 price objective on the stock. in a research note on Wednesday. BMO Capital Markets cut shares of International Paper from an “outperform” rating to a “market perform” rating and lowered their price objective for the stock from $66.00 to $51.00 in a research note on Tuesday. Zacks Investment Research cut shares of International Paper from a “hold” rating to a “sell” rating in a research note on Thursday, October 4th. ValuEngine cut shares of International Paper from a “sell” rating to a “strong sell” rating in a research note on Wednesday, October 3rd. Finally, Stephens set a $57.00 price objective on shares of International Paper and gave the stock a “hold” rating in a research note on Tuesday, September 11th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and six have assigned a buy rating to the company’s stock. International Paper has a consensus rating of “Hold” and a consensus target price of $61.50.
In other International Paper news, insider Timothy S. Nicholls sold 17,000 shares of the firm’s stock in a transaction dated Tuesday, August 28th. The shares were sold at an average price of $52.53, for a total value of $893,010.00. Following the completion of the transaction, the insider now directly owns 108,538 shares in the company, valued at $5,701,501.14. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Sharon R. Ryan sold 15,000 shares of the firm’s stock in a transaction dated Monday, August 6th. The stock was sold at an average price of $52.87, for a total transaction of $793,050.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 46,725 shares of company stock valued at $2,484,864. Corporate insiders own 0.32% of the company’s stock.
The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.13 and a current ratio of 1.57. The firm has a market capitalization of $20.10 billion, a P/E ratio of 12.23, a P/E/G ratio of 0.99 and a beta of 1.54.
International Paper (NYSE:IP) last posted its quarterly earnings results on Thursday, July 26th. The basic materials company reported $1.19 EPS for the quarter, topping the consensus estimate of $1.09 by $0.10. The business had revenue of $5.83 billion during the quarter, compared to analysts’ expectations of $5.80 billion. International Paper had a net margin of 12.95% and a return on equity of 29.24%. The firm’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same period last year, the company posted $0.65 earnings per share. Equities research analysts forecast that International Paper Co will post 5.21 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, December 14th. Investors of record on Thursday, November 15th will be issued a dividend of $0.50 per share. This is a boost from International Paper’s previous quarterly dividend of $0.48. This represents a $2.00 annualized dividend and a dividend yield of 4.69%. The ex-dividend date is Wednesday, November 14th. International Paper’s dividend payout ratio (DPR) is currently 54.44%.
International Paper announced that its board has approved a stock repurchase program on Tuesday, October 9th that authorizes the company to buyback $430.00 million in shares. This buyback authorization authorizes the basic materials company to repurchase up to 2.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its stock is undervalued.
About International Paper (NYSE:IP)
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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