International Paper (NYSE:IP) Shares Gap Up – Time to Buy?

International Paper (NYSE:IP) shares gapped up before the market opened on Tuesday . The stock had previously closed at $52.83, but opened at $54.92. International Paper shares last traded at $55.04, with a volume of 1,616,654 shares trading hands.

Analyst Ratings Changes

A number of analysts have recently commented on IP shares. StockNews.com upgraded shares of International Paper from a “hold” rating to a “buy” rating in a research note on Thursday, March 20th. Bank of America began coverage on shares of International Paper in a research note on Thursday, February 13th. They set a “neutral” rating for the company. JPMorgan Chase & Co. started coverage on International Paper in a research note on Thursday, March 20th. They issued an “overweight” rating and a $59.00 price target on the stock. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $64.00 price objective on shares of International Paper in a report on Wednesday. Finally, Citigroup began coverage on International Paper in a research note on Wednesday, March 5th. They set a “buy” rating and a $60.00 price target for the company. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, International Paper currently has an average rating of “Moderate Buy” and a consensus target price of $55.32.

International Paper Stock Performance

The company has a debt-to-equity ratio of 0.66, a current ratio of 1.49 and a quick ratio of 1.08. The company has a market capitalization of $29.28 billion, a P/E ratio of 35.45, a P/E/G ratio of 0.39 and a beta of 1.02. The business has a 50-day moving average of $54.96 and a 200-day moving average of $53.62.

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

International Paper Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 17th. Investors of record on Monday, February 24th were issued a dividend of $0.4625 per share. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.85 dividend on an annualized basis and a yield of 3.32%. International Paper’s payout ratio is 117.83%.

Hedge Funds Weigh In On International Paper

A number of institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD grew its stake in International Paper by 0.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 47,596,595 shares of the basic materials company’s stock worth $2,561,651,000 after purchasing an additional 368,648 shares in the last quarter. Vanguard Group Inc. lifted its stake in International Paper by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 41,195,085 shares of the basic materials company’s stock worth $2,217,119,000 after acquiring an additional 340,383 shares during the period. Capital Research Global Investors lifted its position in shares of 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 during the period. FMR LLC boosted its stake in shares of International Paper by 48.9% during the fourth quarter. FMR LLC now owns 26,559,812 shares of the basic materials company’s stock valued at $1,429,449,000 after purchasing an additional 8,720,575 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in International Paper by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 8,393,217 shares of the basic materials company’s stock valued at $450,586,000 after buying an additional 24,816 shares during the period. 81.95% of the stock is owned by hedge funds and other institutional investors.

About International Paper

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.