International Paper (NYSE:IP) Shares Gap Up – Still a Buy?

International Paper (NYSE:IP)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $50.63, but opened at $51.94. International Paper shares last traded at $51.45, with a volume of 402,497 shares changing hands.

Wall Street Analyst Weigh In

IP has been the topic of several recent analyst reports. Royal Bank of Canada reiterated an “outperform” rating and issued a $64.00 price target on shares of International Paper in a report on Friday, January 31st. Truist Financial restated a “buy” rating and set a $64.00 target price (down previously from $65.00) on shares of International Paper in a report on Friday, January 31st. Bank of America started coverage on shares of International Paper in a research note on Thursday, February 13th. They issued a “neutral” rating on the stock. Finally, Citigroup started coverage on shares of International Paper in a research note on Wednesday, March 5th. They issued a “buy” rating and a $60.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, International Paper presently has an average rating of “Moderate Buy” and a consensus target price of $54.86.

International Paper Price Performance

The company has a current ratio of 1.49, a quick ratio of 1.08 and a debt-to-equity ratio of 0.66. The firm has a 50 day moving average price of $55.18 and a 200 day moving average price of $53.30. The stock has a market capitalization of $27.06 billion, a PE ratio of 32.76, a price-to-earnings-growth ratio of 0.39 and a beta of 1.02.

International Paper (NYSE:IP) last announced its quarterly earnings data on Thursday, January 30th. The basic materials company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.05). International Paper had a net margin of 2.99% and a return on equity of 4.75%. Research analysts anticipate that International Paper will post 2.77 earnings per share for the current year.

International Paper Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, February 24th will be paid a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a dividend yield of 3.60%. The ex-dividend date of this dividend is Monday, February 24th. International Paper’s dividend payout ratio (DPR) is 117.83%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Capital Research Global Investors lifted its stake in International Paper by 68.8% in the 4th quarter. Capital Research Global Investors now owns 29,904,546 shares of the basic materials company’s stock worth $1,609,462,000 after purchasing an additional 12,191,361 shares in the last quarter. FMR LLC lifted its stake in International Paper by 48.9% in the 4th quarter. FMR LLC now owns 26,559,812 shares of the basic materials company’s stock worth $1,429,449,000 after purchasing an additional 8,720,575 shares in the last quarter. Point72 Asset Management L.P. lifted its stake in International Paper by 511.1% in the 3rd quarter. Point72 Asset Management L.P. now owns 2,970,432 shares of the basic materials company’s stock worth $145,106,000 after purchasing an additional 2,484,386 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in shares of International Paper by 134.8% in the 4th quarter. Alyeska Investment Group L.P. now owns 3,948,752 shares of the basic materials company’s stock worth $212,522,000 after buying an additional 2,266,762 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of International Paper in the 4th quarter worth about $109,201,000. Hedge funds and other institutional investors own 81.95% of the company’s stock.

International Paper Company Profile

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.