International Paper (NYSE:IP) Stock Price Breaks Above Fifty Day Moving Average on Analyst Downgrade

Shares of International Paper Company (NYSE:IP) crossed above its 50-day moving average during trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $61.00 to $62.00. The stock has a 50-day moving average of $35.04 and traded as high as $36.34. JPMorgan Chase & Co. currently has an overweight rating on the stock. International Paper shares last traded at $35.93, with a volume of 7,751,263 shares changing hands.

Several other analysts also recently commented on IP. Wells Fargo & Company boosted their target price on shares of International Paper from $42.00 to $46.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Seaport Research Partners restated a “buy” rating and set a $46.00 price target on shares of International Paper in a report on Wednesday, August 12th. Bank of America raised shares of International Paper from a “neutral” rating to a “buy” rating and set a $46.00 price objective for the company in a research note on Friday, September 11th. Citigroup upped their price objective on shares of International Paper from $43.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Finally, Zacks Research upgraded International Paper from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. Ten research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, International Paper presently has a consensus rating of “Moderate Buy” and a consensus target price of $45.90.

Insider Buying and Selling

In other news, VP William Hamic sold 24,500 shares of International Paper stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $41.20, for a total value of $1,009,400.00. Following the transaction, the vice president owned 106,952 shares of the company’s stock, valued at $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total transaction of $146,860.00. Following the sale, the chief accounting officer directly owned 34,248 shares of the company’s stock, valued at approximately $1,437,046.08. This represents a 9.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.21% of the company’s stock.

More International Paper News

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Analysts see potential for a turnaround. RBC said International Paper may be “turning the corner,” reflecting stronger North American packaging results and improving operating performance. RBC commentary on International Paper
• Positive Sentiment: North American profit guidance is encouraging. International Paper reported North American segment operating profit of $427 million, up from $204 million in the second quarter, and forecast fourth-quarter profit of $460 million to $500 million. Full-year guidance is $1.3 billion to $1.4 billion. International Paper third-quarter results
• Positive Sentiment: Adjusted earnings exceeded expectations. Third-quarter adjusted EPS was $0.37, above the $0.29 analyst consensus, supported by the rebound in North American operations.
• Neutral Sentiment: JPMorgan remains constructive despite lowering its target. JPMorgan reduced its price target from $62 to $51 but maintained an “overweight” rating, implying substantial upside from recent trading levels.
• Neutral Sentiment: Truist also lowered its target. Truist Securities cut its International Paper price target to $39, signaling more cautious expectations even as the target remains above the recent share price. Truist price-target update
• Negative Sentiment: Revenue and volumes disappointed. Third-quarter sales of $6.20 billion fell short of the $6.28 billion consensus and declined slightly year over year. Lower volumes and weakness in the EMEA business weighed on results.
• Negative Sentiment: A large noncash impairment produced a significant reported loss. International Paper posted a $1.13 billion net loss, including a $1.38 billion goodwill impairment tied to Packaging Solutions EMEA. Free cash flow was also negative $267 million, raising concerns about near-term financial flexibility.

Institutional Trading of International Paper

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IP. BlackRock Inc. bought a new stake in shares of International Paper in the 2nd quarter worth approximately $1,940,896,000. Bank of New York Mellon Corp bought a new stake in shares of International Paper during the second quarter valued at approximately $689,498,000. Atlas FRM LLC acquired a new position in shares of International Paper in the second quarter valued at $374,904,000. Hill City Capital LP acquired a new position in shares of International Paper in the second quarter valued at $194,310,000. Finally, Bank of America Corp DE acquired a new position in shares of International Paper in the second quarter valued at $142,802,000. Institutional investors and hedge funds own 81.95% of the company’s stock.

International Paper Stock Performance

The stock has a market capitalization of $19.03 billion, a P/E ratio of -5.48, a PEG ratio of 4.56 and a beta of 0.93. The firm has a 50-day moving average of $35.04 and a 200 day moving average of $37.46. The company has a quick ratio of 0.84, a current ratio of 1.01 and a debt-to-equity ratio of 0.59.

International Paper (NYSE:IP) last announced its quarterly earnings results on Wednesday, October 28th. The basic materials company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.08. International Paper had a negative net margin of 14.32% and a positive return on equity of 1.77%. The firm had revenue of $6.20 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same quarter in the previous year, the firm posted ($0.43) EPS. The business’s revenue for the quarter was down .4% on a year-over-year basis. Research analysts anticipate that International Paper Company will post 1.26 EPS for the current fiscal year.

International Paper Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 16th will be given a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a dividend yield of 5.1%. The ex-dividend date is Monday, November 16th. International Paper’s payout ratio is -28.37%.

International Paper Company Profile

International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.