Argus Downgrade International Paper Company [IP]. What else is Wall St. saying?

International Paper Company [NYSE: IP] closed the trading session at $42.49 on 10/08/20. The day’s price range saw the stock hit a low of $41.79, while the highest price level was $42.51. The company report on September 22, 2020 that International Paper Announces Price Determination with Respect to Waterfall Tender Offer for its Outstanding 3.650% due 2024 and 3.800% Notes due 2026.

International Paper Company (NYSE: IP) (the “Company”) announced today certain pricing terms for its previously announced cash tender offer (the “Waterfall Tender Offer”) for up to $700 million combined aggregate principal amount, less the aggregate principal amount of its outstanding 3.000% Notes due 2027 purchased in a separate offer (the “Waterfall Tender Cap”), of its outstanding 3.650% Notes due 2024 (the “3.650% Notes”) and 3.800% Notes due 2026 (the “3.800% Notes” and, together with the 3.650% Notes, the “Notes”).

The Reference Yield was determined by the Lead Dealer Managers, based on the bid-side price of the Reference U.S. Treasury Security as of 10:00 a.m., New York City time, on September 22, 2020. Holders whose Notes are accepted for purchase pursuant to the Waterfall Tender Offer will also receive accrued and unpaid interest on such Notes from the last interest payment date for such Notes to, but excluding, the applicable settlement date for the Waterfall Tender Offer.

The stocks have a year to date performance of -7.73 percent and weekly performance of 6.36 percent. The stock has been moved at 24.35 percent over the last six months. The stock has performed 10.97 percent around the most recent 30 days and changed 23.02 percent over the most recent 3-months.

If compared to the average trading volume of 2.91M shares, IP reached to a volume of 2066978 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about International Paper Company [IP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for IP shares is $39.62 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on IP stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Argus have made an estimate for International Paper Company shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 21, 2020. The new note on the price target was released on July 16, 2020, representing the official price target for International Paper Company stock. Previously, the target price had yet another raise to $29, while Morgan Stanley analysts kept a Underweight rating on IP stock.

The Average True Range (ATR) for International Paper Company is set at 1.34, with the Price to Sales ratio for IP stock in the period of the last 12 months amounting to 0.77. The Price to Book ratio for the last quarter was 2.37, with the Price to Cash per share for the same quarter was set at 2.18. Price to Free Cash Flow for IP in the course of the last twelve months was 12.03 with Quick ratio for the last quarter at 0.60.

IP stock trade performance evaluation

International Paper Company [IP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.36. With this latest performance, IP shares gained by 10.97% in over the last four-week period, additionally plugging by 24.35% over the last 6 months – not to mention a rise of 8.09% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for IP stock in for the last two-week period is set at 61.48, with the RSI for the last a single of trading hit 64.42, and the three-weeks RSI is set at 60.57 for International Paper Company [IP]. The present Moving Average for the last 50 days of trading for this stock 38.33, while it was recorded at 41.38 for the last single week of trading, and 37.06 for the last 200 days.

International Paper Company [IP]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and International Paper Company [IP] shares currently have an operating margin of +11.07 and a Gross Margin at +26.16. International Paper Company’s Net Margin is presently recorded at +5.47.

Return on Total Capital for IP is now 12.33, given the latest momentum, and Return on Invested Capital for the company is 7.00. Return on Equity for this stock inclined to 16.25, with Return on Assets sitting at 3.65. When it comes to the capital structure of this company, International Paper Company [IP] has a Total Debt to Total Equity ratio set at 187.00. Additionally, IP Total Debt to Total Capital is recorded at 65.16, with Total Debt to Total Assets ending up at 43.09. Long-Term Debt to Equity for the company is recorded at 128.37, with the Long-Term Debt to Total Capital now at 44.73.

Reflecting on the efficiency of the workforce at the company, International Paper Company [IP] managed to generate an average of $24,020 per employee. Receivables Turnover for the company is 5.90 with a Total Asset Turnover recorded at a value of 0.67.International Paper Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.80.

Earnings per share (EPS) analysis for International Paper Company [IP] stock

With the latest financial reports released by the company, International Paper Company posted 1.09/share EPS, while the average EPS was predicted by analysts to be reported at 0.99/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 10.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for IP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for International Paper Company go to 0.00%.

International Paper Company [IP]: Insider Ownership positions

There are presently around $13,673 million, or 83.50% of IP stock, in the hands of institutional investors. The top three institutional holders of IP stocks are: VANGUARD GROUP INC with ownership of 46,517,638, which is approximately -2.779% of the company’s market cap and around 0.24% of the total institutional ownership; BLACKROCK INC., holding 36,995,321 shares of the stock with an approximate value of $1.57 billion in IP stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $1.3 billion in IP stock with ownership of nearly 35.867% of the company’s market capitalization.

Positions in International Paper Company stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 336 institutional holders increased their position in International Paper Company [NYSE:IP] by around 25,222,105 shares. Additionally, 380 investors decreased positions by around 26,434,105 shares, while 118 investors held positions by with 270,144,183 shares. The mentioned changes placed institutional holdings at 321,800,393 shares, according to the latest SEC report filing. IP stock had 73 new institutional investments in for a total of 1,896,467 shares, while 91 institutional investors sold positions of 3,240,528 shares during the same period.

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