International Paper Company (NYSE: IP) Loses -23.99% From High. Why That Could Change?


T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in International Paper Company (NYSE:IP). The institutional investor has increased its shareholding in the Consumer Cyclical company by 35.87% to 30.52 million shares with purchase of 8.06 million shares. This fresh investment now brings its stake to 7.77% valued currently at $1.06 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 1.15 million to 25.96 million shares. And BlackRock Fund Advisors has lifted its position by 3.57% or 0.87 million shares – to 25.36 million shares.

With over 1.92 million International Paper Company (IP) shares trading Tuesday and a closing price of $36.21 on the day, the dollar volume was approximately $69.5 million. The shares have shown a negative weekly performance of -0.08% and its price on 08/25/20 lost nearly -2.84%. Currently, there are 393.10M common shares owned by the public and among those 392.11M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for IP have a consensus price objective of $38.50. The analysts have set the share’s price value over the next 12 months at a high of $53.00 and a low of $29.00 should the stock experience a downside. Incidentally, analysts’ outlook for the International Paper Company stock is 2.80 for the next 12 months. The average price target is 7.7% above its last price level and an upside to the estimated low will see the stock lose -24.86% over that period. But an upside of 31.68% will see the stock hit the forecast high price target while mean target price for the stock is $38.50.

Insiders at the company have transacted a total of 49 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 24 of these insider trades were purchases, accounting for 397,272 shares. Insider sales of the common stock occurred on 25 occasions, with total insider shares sold totaling 196,679 shares.

The top 3 mutual fund holders in International Paper Company are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 11.17 million shares of the company’s stock, all valued at over $388.43 million. The company sold 65459.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard Mid Cap Index Fund sold 73660.0 shares to see its total holdings shrink to 9.65 million shares valued at over $335.62 million and representing 2.45% of the shares outstanding. Vanguard 500 Index Fund sold 50687.0 shares to bring its total holdings to over 8.11 million shares at a value of $282.03 million. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of International Paper Company (NYSE: IP) opened at $37.45, up $0.18 from a prior closing price of $37.27. However, the script later closed the day at $36.21, down -2.84%. The company’s stock has a 5-day price change of -0.08% and 1.03% over the past three months. IP shares are trading -21.37% year to date (YTD), with the 12-month market performance down to -4.10% lower. It has a 12-month low price of $26.38 and touched a high of $47.64 over the same period. Currently, 1.92 million shares have been traded, compared to an average intraday trading volume of 2.82 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.37%, 1.64%, and -4.94% respectively.

Institutional ownership of International Paper Company (NYSE: IP) shares accounts for 83.50% of the company’s 393.10M shares outstanding. Mutual fund holders own 36.27%, while other institutional holders and individual stakeholders account for 47.10% and 1.79% respectively.

It has a market capitalization of $14.44B and a beta (3y monthly) value of 1.30. The stock’s trailing 12-month PE ratio is 22.55, while the earnings-per-share (ttm) stands at $1.61. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.87% over the week and 2.84% over the month.

Analysts forecast that International Paper Company (IP) will achieve an EPS of $0.48 for the current quarter, $0.64 for the next quarter and $2.47 for 2021. The lowest estimate earnings-per-share for the quarter is $0.4 while analysts give the company a high EPS estimate of $0.66. Comparatively, EPS for the current quarter was $1.09 a year ago. Earnings per share for the fiscal year are expected to decrease by -21.80%, and -2.37% over the next financial year. EPS should shrink at an annualized rate of 0.00% over the next five years, compared to 18.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate International Paper Company (IP) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 8 of the 15 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the IP, a number of firms have released research notes about the stock. Argus stated their Hold rating for the stock in a research note on August 21, 2020, with the firm’s price target at. BofA Securities coverage for the International Paper Company (IP) stock in a research note released on July 16, 2020 offered a Buy rating with a price target of. Morgan Stanley was of a view on June 15, 2020 that the stock is Underweight, while Credit Suisse gave the stock Neutral rating on February 14, 2020, issuing a price target of $48. Goldman on their part issued Sell rating on December 10, 2019.


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