International Paper Co (IP) Shares Hit 3-Year Low Following Downgrade

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Shares of International Paper Co (NYSE:IP) are trading significantly lower this afternoon after the company was downgraded from a ‘buy’ to ‘neutral rating by Citi. The research group also lowered their one-year target price from $45 per share to just $38 on lower margins reflected from the company’s lower prices on kraftliner and corrugated medium.

While the stock has plunged over the last three months, an attractive dividend yield of 5.26% and a PE ratio of around 15.5 seems to have kept investors somewhat interested. Today, however, is a different story as shares of International Paper Co (NYSE:IP) have hit new 52-week and 3-year lows of $33.45 per share. We will be following the share price closly to see if a bounce occurs over the remainder of the week or if more bleeding is in store for this company.

The stock has fallen 8.23% or $3 following this negative news, hitting $33.45 per share. About 6.60 million shares traded hands or 82.83% up from the average. IP has declined 28.59% since June 18, 2015 and is downtrending. It has underperformed the S&P500 by 19.72%.

From a total of 6 analysts covering International Paper Company (NYSE:IP) stock, 1 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $60 while the lowest target price is $42. The mean of all analyst targets is $48.71 which is 45.62% above today’s ($33.45) stock price. International Paper Company was the topic of 11 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Barclays Capital downgraded shares on January 8 to a “Equal-Weight” rating. Deutsche Bank maintained IP stock in a recent report from September 17 with a “Hold” rating.

The institutional sentiment decreased to 0.7 in Q2 2015. It’s down 0.47, from 1.17 in 2015Q2. The ratio fall, as 82 funds sold all their International Paper Co shares they owned while 292 reduced their positions. 39 funds bought stakes while 223 increased their total positions. Institutions now own 348.69 million shares which is 0.27% less than the previous share count of 349.64 million in 2015Q2.

Holowesko Partners Ltd. holds 5.17% of its total portfolio in International Paper Co, equating to 1.96 million shares. Fidelity National Financial Inc. owns 395,001 shares representing 4.78% of their total US portfolio. Moreover, Capital Innovations Llc has 4.58% of their total portfolio invested in the company, equating to 106,523 shares. The Connecticut-based Sasco Capital Inc Ct has a total of 3.24% of their portfolio invested in the stock. Rnc Capital Management Llc, a California-based fund reported 855,318 shares owned.

International Paper Company is a paper and packaging firm with primary markets and manufacturing activities in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The company has a market cap of $14.67 billion. The Firm operates in three divisions: Industrial Packaging, Printing Papers and Consumer Packaging. It has 15.6 P/E ratio. Industrial Packaging segment’s products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft.