Grantham Mayo Van Otterloo & Co. LLC has significantly increased its investment in International Paper Company (NYSE: IP), purchasing an additional 16,500 shares during the second quarter of 2023. This move has raised the firm’s total holdings to 28,500 shares, reflecting a substantial increase of 137.5%. As of the latest filing with the U.S. Securities and Exchange Commission (SEC), the value of these holdings is approximately $1.335 million.
Several other institutional investors have also modified their stakes in International Paper. The State Board of Administration of Florida Retirement System raised its position by 1.9%, acquiring an additional 8,620 shares during the same quarter. This brings its total shares to 465,026, valued at $21.777 million. Additionally, Johnson Financial Group Inc. increased its holdings by 19.7%, now owning 6,306 shares worth $295,000 after adding 1,040 shares.
Other notable transactions include Elevation Point Wealth Partners LLC, which acquired a new stake in International Paper valued at approximately $35,000, and Quadrant Capital Group LLC, which raised its position by 10.5%, bringing its total to 9,123 shares, valued at $427,000. Lastly, J.W. Cole Advisors Inc. also initiated a new investment in the company, valued at $210,000. Currently, institutional investors hold approximately 81.95% of International Paper’s stock.
In related activity, Joseph R. Saab, a senior vice president at International Paper, sold 9,000 shares on September 16, 2023, at an average price of $45.53, resulting in a total transaction value of $409,770. This sale represents a 24.54% decrease in his overall position, which now consists of 27,673 shares valued at around $1.26 million. Insider ownership is currently at 0.35%.
Market Performance and Financial Outlook
As of the market opening on Monday, October 30, 2023, shares of International Paper traded at $39.48. The company has experienced a fifty-two week low of $35.56 and a high of $60.15. Financial metrics indicate a debt-to-equity ratio of 0.52, a current ratio of 1.33, and a quick ratio of 0.96. The company’s market capitalization stands at $20.85 billion, with a price-to-earnings (P/E) ratio of -394.80 and a beta value of 1.12.
International Paper recently announced its quarterly earnings, reporting a loss of ($0.43) earnings per share, falling short of analysts’ expectations of $0.53. The company generated $6.22 billion in revenue, missing the anticipated figure of $6.76 billion. Despite these setbacks, International Paper noted a year-over-year revenue increase of 56.4%, compared to the same quarter last year when it reported earnings of $0.33 per share. Analysts project that the company will achieve $2.77 earnings per share for the current fiscal year.
Dividend Announcement
International Paper has declared a quarterly dividend of $0.4625, set to be distributed on December 16, 2023. Shareholders of record on November 14, 2023, will receive this payment, which translates to an annualized dividend of $1.85 and a yield of 4.7%. The company’s payout ratio stands at -70.88%, indicating a negative net margin.
International Paper Company operates in the renewable fiber-based products sector, producing packaging and pulp products across North America, Latin America, Europe, and North Africa. It functions through two primary segments: Industrial Packaging and Global Cellulose Fibers, offering a variety of products such as linerboard, recycled medium, and specialty pulps for diverse applications.
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