Is International Paper Company (IP) Stock Cheap Or Risky?


As of Friday close, International Paper Company’s (NYSE:IP) stock was down -$0.61, moving down -1.76 percent to $34.06. The average number of shares traded per day over the past five days has been 4,217,440 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.46 fall in that time frame. In the last twenty days, the average volume was 3,241,715, while in the previous 50 days, it was 3,245,366.

Since last month, IP stock retreated -13.29%. Shares of the company fell to $33.42 on 03/17/23, the lowest level in the past month. A 52-week high of $50.23 was reached on 01/31/23 after having rallying from a 52-week low of $30.69. Since the beginning of this year, IP’s stock price has dropped by -1.65% or -$0.57, and marked a new high 8 times. However, the stock has declined by -32.19% since its 52-week high.

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IP stock investors should be aware that International Paper Company (IP) stock had its last reported insider trading activity 24 days ago on Feb 22. Gregg Aimee K., the Senior Vice President of the company, disposed of 1,862 shares for $36.05 on Feb 22. It resulted in a $67,125 divestment by the insider. Nicholls Timothy S sold 5,000 shares at an average price of $38.95 on Feb 16. The insider now owns 129,261 shares following the transaction. On Nov 30, Senior Vice President PLATH THOMAS J. sold 2,000 shares at $36.00 apiece. The transaction was valued at $72,000.

Valuation Metrics

Right now, International Paper Company (IP) has a P/E ratio of about 7.19. The stock’s beta is 1.05. Besides these, the trailing price-to-sales (P/S) ratio of 0.57, the price-to-book (PB) ratio of 1.42, and the price-to-cash flow ratio of 21.32 may also be considered.

The latest dividend of $0.4625 per share was paid out, remained unchanged from last year’s $0.4625. On Tuesday January 11 2022, a $0.5375 dividend decrease was announced.

Financial Health

In the three months ended December 30, International Paper Company’s quick ratio stood at 1.00, while its current ratio was 1.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.57, and the total debt-to-equity ratio was 0.66. On the profitability front, the trailing twelve-month gross margin is 28.40% percent. In the year ended December 30, operating margins totaled 7.50%. Based on annual data, IP earned $6.02 billion in gross profit and brought in $21.16 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 13.00%. Return on equity (ROE) for the past 12 months was 16.80%.

In International Paper Company’s quarter-end financial report for December 30, it reported total debt of $4.82 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. While analysts expected International Paper Company to report $0.69 quarterly earnings, the actual figure was $0.87 per share, beating the consensus estimate by 26.10%. During the quarter, the company generated $704.0 million in EBITDA. The liabilities of International Paper Company were 15.44 billion at the end of its most recent quarter ended December 30, and its total debt was $5.86 billion. The value of shareholders’ equity is $350.08 million.

Technical Picture

This quick technical analysis looks at International Paper Company’s (IP) price momentum. With a historical volatility rate of 23.34%, the RSI 9-day stood at 29.42% on 17 March.

With respect to its five-day moving average, the current International Paper Company price is down by -4.11% percent or -$1.46. At present, IP shares trade -11.85% below its 20-day simple moving average and +2.96% percent above its 100-day simple moving average. However, the stock is currently trading approximately -7.52% below its SMA50 and -29.70% below its SMA200.

Stochastic coefficient K was 14.25% and Stochastic coefficient D was 14.48%, while ATR was 1.00. Given the Stochastic reading of 13.97% for the 14-day period, the RSI (14) reading has been calculated as 33.94%. As of today, the MACD Oscillator reading stands at -0.97, while the 14-day reading stands at -1.55.

Analyst Ratings

UBS upgraded its rating on International Paper Company (NYSE: IP) to a Neutral in a note to investors on February 03, 2023. The analysts firm previously had a Sell rating on the stock.International Paper Company (IP) has been rated Hold by analysts. According to 2 brokerage firms, IP is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate International Paper Company stock as buy, with 1 recommending it as overweight.

With a median target price of $40.00, the current consensus forecast for the stock is $30.00 – $44.00. Based on these forecasts, analysts predict International Paper Company (IP) will achieve an average price target of $38.56.


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