International Paper Company (NYSE:IP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “International Paper outperformed the Zacks categorized Paper and Related Products industry in the last three months. The company is undergoing restructuring initiatives to transform itself into a core packaging firm. International Paper completed the acquisition of Weyerhaeuser’s pulp business to strengthen its position in the global fluff pulp market and augment its operating cash flow. It further aims to utilize its cash flow by investing in capital projects, reduce debt burden and improve shareholder return. However, strength in U.S. dollars and soft global macroeconomic conditions has led to volatility in raw material prices, affecting the performance of the company. A huge burden of pension obligations further reduces its operating cash flow. Failure to realize synergies from acquisitions could negatively impact earnings. The company has a positive earnings history in the trailing four quarters, while estimates have remained steady.”
IP has been the topic of several other research reports. TheStreet upgraded International Paper Company to a “buy” rating in a research note on Thursday, December 1st. Deutsche Bank AG set a $50.00 price objective on International Paper Company and gave the company a “hold” rating in a research note on Friday, September 23rd. Goldman Sachs Group, Inc. (The) assumed coverage on International Paper Company in a research note on Thursday, September 22nd. They issued a “neutral” rating and a $49.00 price objective on the stock. Vetr upgraded International Paper Company from a “buy” rating to a “strong-buy” rating and set a $51.66 target price on the stock in a research report on Tuesday, October 11th. Finally, Macquarie downgraded International Paper Company from a “market perform” rating to an “underperform” rating in a research report on Tuesday, October 18th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $48.26.
Shares of International Paper Company (NYSE:IP) traded down 0.22% during midday trading on Wednesday, reaching $53.55. The company had a trading volume of 1,694,475 shares. International Paper Company has a one year low of $32.50 and a one year high of $54.68. The company has a market capitalization of $22.02 billion, a PE ratio of 25.79 and a beta of 1.56. The company has a 50 day moving average of $52.75 and a 200 day moving average of $47.94.
International Paper Company (NYSE:IP) last posted its quarterly earnings data on Thursday, October 27th. The company reported $0.91 EPS for the quarter, missing the consensus estimate of $0.93 by $0.02. International Paper Company had a net margin of 4.09% and a return on equity of 35.28%. The firm earned $5.30 billion during the quarter, compared to analysts’ expectations of $5.36 billion. During the same quarter in the previous year, the company posted $0.97 EPS. International Paper Company’s revenue for the quarter was down 7.5% on a year-over-year basis. Analysts predict that International Paper Company will post $3.34 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 15th. Investors of record on Wednesday, February 15th will be given a $0.4625 dividend. The ex-dividend date of this dividend is Monday, February 13th. This represents a $1.85 dividend on an annualized basis and a dividend yield of 3.45%. International Paper Company’s dividend payout ratio (DPR) is presently 88.52%.
In related news, insider Tommy S. Joseph sold 11,700 shares of the stock in a transaction on Wednesday, November 30th. The stock was sold at an average price of $48.88, for a total value of $571,896.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Sharon R. Ryan sold 4,871 shares of the stock in a transaction on Friday, December 9th. The stock was sold at an average price of $53.47, for a total value of $260,452.37. The disclosure for this sale can be found here. 0.64% of the stock is owned by corporate insiders.