Confused? Buy or Sell in volatile market – Analyst report International Paper (NYSE:IP)

Earnings results for International Paper (NYSE:IP)

International Paper Company is expected* to report earnings on 04/29/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.59. The reported EPS for the same quarter last year was $0.57.

International Paper last released its quarterly earnings results on February 4th, 2021. The basic materials company reported $0.75 EPS for the quarter, missing the consensus estimate of $0.81 by $0.06. The business earned $5.24 billion during the quarter, compared to analysts’ expectations of $5.30 billion. Its revenue was down 4.7% on a year-over-year basis. International Paper has generated $4.43 earnings per share over the last year and currently has a price-to-earnings ratio of 46.1. International Paper has confirmed that its next quarterly earnings report will be published on Thursday, April 29th, 2021.

Analyst Opinion on International Paper (NYSE:IP)

14 Wall Street analysts have issued ratings and price targets for International Paper in the last 12 months. Their average twelve-month price target is $50.00, predicting that the stock has a possible downside of 13.28%. The high price target for IP is $62.00 and the low price target for IP is $36.00. There are currently 3 sell ratings, 3 hold ratings and 8 buy ratings for the stock, resulting in a consensus rating of “Hold.”

International Paper has received a consensus rating of Hold. The company’s average rating score is 2.36, and is based on 8 buy ratings, 3 hold ratings, and 3 sell ratings. According to analysts’ consensus price target of $50.00, International Paper has a forecasted downside of 13.3% from its current price of $57.66. International Paper has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: International Paper (NYSE:IP)

International Paper pays a meaningful dividend of 3.59%, higher than the bottom 25% of all stocks that pay dividends. International Paper has only been increasing its dividend for 1 years. The dividend payout ratio of International Paper is 46.28%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, International Paper will have a dividend payout ratio of 53.39% next year. This indicates that International Paper will be able to sustain or increase its dividend.

Insiders buying/selling: International Paper (NYSE:IP)

In the past three months, International Paper insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $1,284,553.00 in company stock. Only 0.37% of the stock of International Paper is held by insiders. 81.57% of the stock of International Paper is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of International Paper (NYSE:IP

Earnings for International Paper are expected to grow by 33.33% in the coming year, from $2.88 to $3.84 per share. The P/E ratio of International Paper is 46.13, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 23.88. The P/E ratio of International Paper is 46.13, which means that it is trading at a more expensive P/E ratio than the Basic Materials sector average P/E ratio of about 27.16. International Paper has a P/B Ratio of 2.93. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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