International Paper (IP) Downgraded by BMO Capital Markets

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BMO Capital Markets lowered shares of International Paper (NYSE:IP) from an outperform rating to a market perform rating in a research note published on Tuesday morning, The Fly reports. They currently have $51.00 price objective on the basic materials company’s stock, down from their previous price objective of $66.00.

Other research analysts have also issued research reports about the company. ValuEngine lowered International Paper from a sell rating to a strong sell rating in a research report on Monday, July 2nd. Barclays reduced their price target on International Paper from $55.00 to $52.00 and set an underweight rating for the company in a research report on Monday, July 30th. Zacks Investment Research lowered International Paper from a buy rating to a hold rating in a research report on Friday, September 21st. Wells Fargo & Co boosted their price target on International Paper from $62.00 to $70.00 and gave the stock an outperform rating in a research report on Monday, July 9th. Finally, Stephens reiterated a hold rating and set a $57.00 price target on shares of International Paper in a research report on Thursday, July 5th. Three investment 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. The stock currently has a consensus rating of Hold and a consensus price target of $61.50.

NYSE:IP opened at $42.67 on Tuesday. International Paper has a 12-month low of $41.87 and a 12-month high of $66.94. The company has a market cap 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. The company has a quick ratio of 1.13, a current ratio of 1.57 and a debt-to-equity ratio of 1.57.

International Paper (NYSE:IP) last released its quarterly earnings data on Thursday, July 26th. The basic materials company reported $1.19 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.09 by $0.10. International Paper had a return on equity of 29.24% and a net margin of 12.95%. The business had revenue of $5.83 billion during the quarter, compared to analyst estimates of $5.80 billion. During the same quarter in the previous year, the firm posted $0.65 EPS. The business’s revenue for the quarter was up 8.4% compared to the same quarter last year. Equities analysts expect that International Paper will post 5.21 EPS for the current fiscal year.

International Paper announced that its board has approved a share buyback program on Tuesday, October 9th that permits the company to repurchase $430.00 million in outstanding shares. This repurchase authorization permits the basic materials company to reacquire up to 2.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 14th. Shareholders of record on Thursday, November 15th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 4.69%. The ex-dividend date is Wednesday, November 14th. This is a positive change from International Paper’s previous quarterly dividend of $0.48. International Paper’s payout ratio is 54.44%.

In other news, SVP John V. Sims sold 4,725 shares of the business’s stock in a transaction on Wednesday, September 19th. The stock was 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 SEC, which is accessible through this link. Also, insider Timothy S. Nicholls sold 17,000 shares of the business’s stock in a transaction on Tuesday, August 28th. The stock was sold at an average price of $52.53, for a total value of $893,010.00. Following the completion of the sale, the insider now directly owns 108,538 shares in the company, valued at approximately $5,701,501.14. The disclosure for this sale can be found here. Insiders sold a total of 46,725 shares of company stock worth $2,484,864 in the last three months. Company insiders own 0.32% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the company. Federated Investors Inc. PA raised its position in shares of International Paper by 109.4% during the first quarter. Federated Investors Inc. PA now owns 7,768 shares of the basic materials company’s stock worth $415,000 after purchasing an additional 4,058 shares during the period. BB&T Securities LLC raised its position in shares of International Paper by 19.7% during the first quarter. BB&T Securities LLC now owns 63,356 shares of the basic materials company’s stock worth $3,384,000 after purchasing an additional 10,434 shares during the period. Nomura Asset Management Co. Ltd. raised its position in shares of International Paper by 2.1% during the first quarter. Nomura Asset Management Co. Ltd. now owns 60,735 shares of the basic materials company’s stock worth $3,245,000 after purchasing an additional 1,276 shares during the period. Commonwealth Equity Services LLC raised its position in shares of International Paper by 7.7% during the first quarter. Commonwealth Equity Services LLC now owns 148,696 shares of the basic materials company’s stock worth $7,944,000 after purchasing an additional 10,617 shares during the period. Finally, Nuveen Asset Management LLC raised its position in shares of International Paper by 8.9% during the first quarter. Nuveen Asset Management LLC now owns 33,161 shares of the basic materials company’s stock worth $1,772,000 after purchasing an additional 2,700 shares during the period. 82.22% of the stock is currently owned by institutional investors.

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.

Further Reading: Intrinsic Value and Stock Selection

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Analyst Recommendations for International Paper (NYSE:IP)

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