International Paper Company [NYSE: IP] gained 0.46% or 0.23 points to close at $49.98 with a heavy trading volume of 5500094 shares. The company report on December 3, 2020 that International Paper to Sharpen Focus on Industrial Packaging, Announces Spin-off of Printing Papers.
IP to accelerate profitability in corrugated packaging and absorbent cellulose fibers, Expects $350-$400 million in annual incremental earnings by the end of 2023.
International Paper (NYSE: IP) announced a plan to pursue a spin-off of the Company’s Printing Papers segment into a standalone, publicly traded company (“SpinCo”). The transaction will result in two streamlined, leading companies well positioned for long-term success. Upon completion of the transaction, International Paper and SpinCo will each be well positioned to create long-term value. The Company expects the separation to be tax-free for the Company’s shareowners for U.S. federal income tax purposes and plans to complete the spin-off late in the third quarter of 2021.
It opened the trading session at $49.75, the shares rose to $50.12 and dropped to $49.31, the range by which the price of stock traded the whole day. The daily chart for IP points out that the company has recorded 45.21% gains over the past six months. However, it is still -89.46% lower than its most recent low trading price.
If we look at the average trading volume of 2.94M shares, IP reached to a volume of 5500094 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying 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 $50.00 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 2.60. 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.
Citigroup have made an estimate for International Paper Company shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 16, 2020. While these analysts kept the previous recommendation, BMO Capital Markets raised their target price from $40 to $53. The new note on the price target was released on October 12, 2020, representing the official price target for International Paper Company stock. Previously, the target price had yet another raise from $38 to $52, while Wells Fargo kept a Overweight rating on IP stock.
The Average True Range (ATR) for International Paper Company is set at 1.13, with the Price to Sales ratio for IP stock in the period of the last 12 months amounting to 0.94. The Price to Book ratio for the last quarter was 2.77, with the Price to Cash per share for the same quarter was set at 14.13. Price to Free Cash Flow for IP in the course of the last twelve months was 14.13 with Quick ratio for the last quarter at 1.10.
Trading performance analysis for IP stock
International Paper Company [IP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.78. With this latest performance, IP shares gained by 0.85% in over the last four-week period, additionally plugging by 45.21% over the last 6 months – not to mention a rise of 8.72% 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 57.84, with the RSI for the last a single of trading hit 59.30, and the three-weeks RSI is set at 58.02 for International Paper Company [IP]. The present Moving Average for the last 50 days of trading for this stock 47.59, while it was recorded at 49.24 for the last single week of trading, and 38.26 for the last 200 days.
International Paper Company [IP]: A deeper dive into fundamental analysis
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 1.10 and a Current Ratio set at 1.30.
International Paper Company [IP]: An earnings per share (EPS) analysis
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 1.02/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.90%. 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 2.42%.
An analysis of insider ownership at International Paper Company [IP]
There are presently around $16,264 million, or 84.60% of IP stock, in the hands of institutional investors. The top three institutional holders of IP stocks are: VANGUARD GROUP INC with ownership of 45,679,490, which is approximately -1.802% of the company’s market cap and around 0.24% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 36,843,218 shares of the stock with an approximate value of $1.84 billion in IP stocks shares; and BLACKROCK INC., currently with $1.81 billion in IP stock with ownership of nearly -2.326% of the company’s market capitalization.
Positions in International Paper Company stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 343 institutional holders increased their position in International Paper Company [NYSE:IP] by around 25,864,611 shares. Additionally, 374 investors decreased positions by around 22,171,566 shares, while 122 investors held positions by with 277,369,248 shares. The mentioned changes placed institutional holdings at 325,405,425 shares, according to the latest SEC report filing. IP stock had 87 new institutional investments in for a total of 3,496,116 shares, while 74 institutional investors sold positions of 2,222,943 shares during the same period.