International Paper Company (NYSE:IP) Stock Good Days Over?

Stock analysts at Goldman cut their rating on shares of International Paper Company (NYSE:IP) from Neutral to a new rating of Sell in their opinion released on December 10. Analysts at KeyBanc Capital Markets downgraded the company stock to a Underweight call from its previous Sector Weight stance, in a flash note that dated back to July 15.

Let’s take a glimpse at some insider activity at International Paper Company (NYSE:IP) and observe the pattern. The earliest insider trade happened on 11/21/2019. Amick W. Michael Jr. parted with a total of 8 thousand shares of the firm at average share price of $44.83. The total amount for the sale was set at $358.64 thousand. On completing this exchange, the Senior Vice President account balance was 27.75 thousand shares. The stock lost -2.25 percent from that insider sale. On 09/12/2019, Nicholls Timothy S, Senior Vice President, did a sale of 45 thousand shares at a price of $42.44 per share. This got rid of 1.91 million shares from the insider’s fortune and the stock experienced a 3.25 percent rally in price since the news became public. This exchange saw 66.9 thousand shares get out from the Senior Vice President account. On 07/26/2019, SVP, GC and Corp Secretary Ryan Sharon R. recorded a sale transaction valued at $1.01 million. The sale at $44.97 a share has eliminated 22.51 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -2.56 percent decrease since the transaction reporting date. The company insider is left with 61.55 thousand shares remaining in the account. PLATH THOMAS J., who works as Senior Vice President at the company, performed a sale of 1 thousand shares in a transaction worth $45.17 thousand. The disposal recorded on 05/17/2019 was priced at $45.17 per share. The stock price plunged -2.99 percent since the transaction. PLATH THOMAS J. currently holds a stake of 36.83 thousand in IP stock which is worth $1.61 million after the insider selling.

International Paper Company (IP) is most likely going to rise 10.47 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $59 as 12-month high price target. This represents a whopping 34.61 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $45.5, which means a return possibility of 3.81 percent in comparison with the closing price of the stock of $43.83 in recent trading session. The lowest price set for the stock is $37 which is just above -15.58 percent from IP share’s price at the end of session.

The stock is lingering around the initial support level of $41.57. After this, the following support is at the zone of $41.39. Up until the time the IP stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 50.01 on the daily chart, and this may be a cause for concern. In case the price goes below $41.39 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $42.03 level may cause a pull-back move approaching $42.31 mark.

In the recent trading session, International Paper Company (NYSE:IP) shares gained 4.96% or 2.07 points to reach at $43.83 with a thin trading volume of 1.448 million shares. It opened the trading session at $41.94, the shares rose to $42.12 and dropped to $41.66, the range by which the price of stock traded the whole session. The company now has a market cap of $17 billion and currently has 406.27 million outstanding shares. International Paper Company (IP) stock has plunged -6.62 percent of market value in 21 trading days.

IP stock’s trailing 3-year beta is 1.54, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.49 share in the trailing 52 weeks. The stock’s value fallen -9.32 percent year to date (YTD) compared to a decline of -10.02 percent in 52 week’s period. The firm’s shares are still trading -9.14 percent below its 1-year high of $48.24 and 20.25 percent up from 52-week low of $36.45. The average consensus ranking on the company is 2.8, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

International Paper Company (IP) shares are trading at a P/E ratio of 13.26 times earnings posted in the trailing 12 months. The industry IP deals with has an average P/E of 10.2. Its P/B ratio is standing at 2.07X compared to the 1.48 industry average. It is additionally sporting a 0.81 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.13. International Paper Company has a 32.5% gross profit margin, with its operating margin around 11.7%. Alongside this, the company’s net profit margin currently stands at 7%.

Past records have indicated that shares in International Paper Company rose on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of IP’s Q1 earnings on April 30. Analysts are predicting revenue to suffer decline of -6.4 percent to $5.28B in the financial first quarter, while EPS will soar by about -55.86 percent to $0.49 per share. In the last quarter, it’s earnings of $1.15 per share came better than the $1.00495, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $5.57B, missing the $5.63B analysts had expected. Earnings are seen to rise by 84.6 percent this year, 6.22 percent in the coming year and the trend continues by -1.77 percent every year in the next 5 years.