International Paper Co (NYSE:IP) – Equities research analysts at Seaport Global Securities reduced their FY2018 earnings per share estimates for International Paper in a research report issued on Wednesday, January 9th. Seaport Global Securities analyst M. Weintraub now expects that the basic materials company will post earnings per share of $5.30 for the year, down from their prior estimate of $5.32. Seaport Global Securities currently has a “Neutral” rating on the stock. Seaport Global Securities also issued estimates for International Paper’s Q4 2018 earnings at $1.61 EPS, Q1 2019 earnings at $1.31 EPS, Q4 2019 earnings at $1.30 EPS and FY2019 earnings at $5.40 EPS.
Several other research firms have also recently issued reports on IP. Argus decreased their price target on International Paper from $70.00 to $55.00 and set a “buy” rating on the stock in a report on Monday, October 29th. Royal Bank of Canada reiterated a “buy” rating and issued a $55.00 price target on shares of International Paper in a report on Tuesday, October 23rd. Citigroup decreased their price target on International Paper from $67.00 to $51.00 and set a “buy” rating on the stock in a report on Thursday, October 11th. Zacks Investment Research upgraded International Paper from a “hold” rating to a “buy” rating and set a $53.00 price target on the stock in a report on Tuesday, December 4th. Finally, Deutsche Bank set a $55.00 price target on International Paper and gave the company a “hold” rating in a report on Monday, October 29th. Three investment analysts have rated the stock with a sell rating, eight have assigned 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 target price of $57.00.
International Paper (NYSE:IP) last announced its earnings results on Thursday, October 25th. The basic materials company reported $1.56 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.47 by $0.09. International Paper had a return on equity of 29.75% and a net margin of 13.68%. The company had revenue of $5.90 billion during the quarter, compared to analyst estimates of $5.90 billion.
International Paper declared that its board has authorized a stock buyback plan on Tuesday, October 9th that allows the company to buyback $430.00 million in outstanding shares. This buyback authorization allows the basic materials company to reacquire up to 2.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.
The business also recently announced a quarterly dividend, which will be paid on Friday, March 15th. Shareholders of record on Thursday, February 21st will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 4.42%. The ex-dividend date of this dividend is Wednesday, February 20th. International Paper’s dividend payout ratio (DPR) is currently 57.31%.
A number of institutional investors and hedge funds have recently modified their holdings of IP. FMR LLC boosted its holdings in International Paper by 80.9% during the second quarter. FMR LLC now owns 527,786 shares of the basic materials company’s stock worth $27,487,000 after buying an additional 236,106 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec lifted its holdings in shares of International Paper by 82.6% during the 2nd quarter. Caisse DE Depot ET Placement DU Quebec now owns 57,138 shares of the basic materials company’s stock valued at $2,976,000 after purchasing an additional 25,855 shares in the last quarter. Glen Harbor Capital Management LLC lifted its holdings in shares of International Paper by 29.6% during the 2nd quarter. Glen Harbor Capital Management LLC now owns 11,616 shares of the basic materials company’s stock valued at $605,000 after purchasing an additional 2,656 shares in the last quarter. BB&T Securities LLC lifted its holdings in shares of International Paper by 22.8% during the 2nd quarter. BB&T Securities LLC now owns 77,806 shares of the basic materials company’s stock valued at $4,051,000 after purchasing an additional 14,450 shares in the last quarter. Finally, First Republic Investment Management Inc. lifted its holdings in shares of International Paper by 50.6% during the 2nd quarter. First Republic Investment Management Inc. now owns 14,923 shares of the basic materials company’s stock valued at $778,000 after purchasing an additional 5,013 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.
International Paper Company Profile
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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