International Paper Co. (NYSE: IP) has experienced a rise in its stock price by 1.31 compared to its previous closing price of 35.81. However, the company has seen a gain of 7.24% in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-29 that International Paper (IP) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.
Is It Worth Investing in International Paper Co. (NYSE: IP) Right Now?
The price-to-earnings ratio for International Paper Co. (NYSE: IP) is above average at 68.17x, Company’s 36-month beta value is 0.99.Analysts have differing opinions on the stock, with 5 analysts rating it as a “buy,” 5 as “overweight,” 7 as “hold,” and 1 as “sell.”
The public float for IP is 340.41M, and currently, short sellers hold a 3.11% ratio of that floaft. The average trading volume of IP on May 06, 2024 was 5.74M shares.
IP’s Market Performance
The stock of International Paper Co. (IP) has seen a 7.24% increase in the past week, with a -7.66% drop in the past month, and a 8.43% gain in the past quarter. The volatility ratio for the week is 2.56%, and the volatility levels for the past 30 days are at 2.61% for IP.. The simple moving average for the past 20 days is 0.93% for IP’s stock, with a 2.42% simple moving average for the past 200 days.
Analysts’ Opinion of IP
Many brokerage firms have already submitted their reports for IP stocks, with BofA Securities repeating the rating for IP by listing it as a “Buy.” The predicted price for IP in the upcoming period, according to BofA Securities is $42 based on the research report published on March 04, 2024 of the current year 2024.
IP Trading at -0.78% from the 50-Day Moving Average
After a stumble in the market that brought IP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.11% of loss for the given period.
Volatility was left at 2.61%, however, over the last 30 days, the volatility rate increased by 2.56%, as shares sank -6.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.19% upper at present.
During the last 5 trading sessions, IP rose by +7.24%, which changed the moving average for the period of 200-days by +14.96% in comparison to the 20-day moving average, which settled at $35.83. In addition, International Paper Co. saw 0.36% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at IP starting from SULLIVAN KATHRYN D, who sale 600 shares at the price of $34.94 back on Apr 30 ’24. After this action, SULLIVAN KATHRYN D now owns 40,588 shares of International Paper Co., valued at $20,964 using the latest closing price.
SULLIVAN KATHRYN D, the Director of International Paper Co., sale 600 shares at $37.78 during a trade that took place back on Apr 15 ’24, which means that SULLIVAN KATHRYN D is holding 41,188 shares at $22,668 based on the most recent closing price.
Stock Fundamentals for IP
Current profitability levels for the company are sitting at:
- 0.02 for the present operating margin
- 0.24 for the gross margin
The net margin for International Paper Co. stands at 0.01. The total capital return value is set at 0.02. Equity return is now at value 2.23, with 0.79 for asset returns.
Based on International Paper Co. (IP), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 0.32. The debt to equity ratio resting at 0.71. The interest coverage ratio of the stock is 1.43.
Currently, EBITDA for the company is 2.23 billion with net debt to EBITDA at 2.36. When we switch over and look at the enterprise to sales, we see a ratio of 0.94. The receivables turnover for the company is 6.07for trailing twelve months and the total asset turnover is 0.8. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.68.
Conclusion
In a nutshell, International Paper Co. (IP) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
