International Paper Co (NYSE:IP) – DA Davidson lifted their Q4 2018 earnings estimates for International Paper in a report issued on Friday, October 26th. DA Davidson analyst S. Chercover now anticipates that the basic materials company will post earnings per share of $1.63 for the quarter, up from their prior forecast of $1.53. DA Davidson also issued estimates for International Paper’s Q1 2019 earnings at $1.43 EPS, Q2 2019 earnings at $1.56 EPS, Q3 2019 earnings at $1.55 EPS and Q4 2019 earnings at $1.44 EPS.
International Paper (NYSE:IP) last issued its quarterly earnings results on Thursday, October 25th. The basic materials company reported $1.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.47 by $0.09. International Paper had a return on equity of 29.42% and a net margin of 13.68%. The company had revenue of $5.90 billion during the quarter, compared to the consensus estimate of $5.90 billion.
NYSE:IP opened at $43.64 on Monday. International Paper has a twelve month low of $39.60 and a twelve month high of $66.94. The firm has a market cap of $18.34 billion, a PE ratio of 12.50, a price-to-earnings-growth ratio of 0.92 and a beta of 1.54. The company has a quick ratio of 1.13, a current ratio of 1.59 and a debt-to-equity ratio of 1.45.
Several hedge funds have recently added to or reduced their stakes in the stock. Qube Research & Technologies Ltd purchased a new position in International Paper in the second quarter valued at about $106,000. Squar Milner Financial Services LLC purchased a new position in International Paper in the second quarter valued at about $125,000. Flagship Harbor Advisors LLC purchased a new position in International Paper in the second quarter valued at about $139,000. Diamant Asset Management Inc. purchased a new position in International Paper in the third quarter valued at about $140,000. Finally, Vigilant Capital Management LLC grew its stake in International Paper by 375.1% in the second quarter. Vigilant Capital Management LLC now owns 3,088 shares of the basic materials company’s stock valued at $161,000 after purchasing an additional 2,438 shares during the last quarter. Hedge funds and other institutional investors own 81.85% of the company’s stock.
In related news, SVP John V. Sims sold 4,725 shares of International Paper stock in a transaction dated Wednesday, September 19th. The stock was sold at an average price of $54.35, for a total value of $256,803.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Timothy S. Nicholls sold 17,000 shares of International Paper stock in a transaction dated Tuesday, August 28th. The shares were sold at an average price of $52.53, for a total value of $893,010.00. Following the completion of the sale, the insider now owns 108,538 shares of the company’s stock, valued at $5,701,501.14. The disclosure for this sale can be found here. Insiders sold 46,725 shares of company stock valued at $2,484,864 over the last 90 days. 0.32% of the stock is currently owned by corporate insiders.
International Paper declared that its board has initiated a stock repurchase plan on Tuesday, October 9th that authorizes the company to repurchase $430.00 million in outstanding shares. This repurchase authorization authorizes the basic materials company to buy up to 2.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 14th. Investors of record on Thursday, November 15th will be issued a $0.50 dividend. This is an increase from International Paper’s previous quarterly dividend of $0.48. This represents a $2.00 annualized dividend and a dividend yield of 4.58%. The ex-dividend date of this dividend is Wednesday, November 14th. International Paper’s payout ratio is presently 54.44%.
About International Paper
International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia. It operates through three segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft.
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