International Paper Company (NYSE:IP) has a beta of 1.06, a 12-month trailing P/E ratio of 24.80, and a growth ratio of 0.96. The stock’s Relative Strength Index (RSI) is 45.87, with weekly volatility at 2.71% and ATR at 1.48. The IP stock’s 52-week price range has touched low of $32.59 and a $65.27 high. Its shares traded higher over the last trading session, gaining 3.06% on 06/21/21. The shares fell to a low of $59.75 before closing at $61.04. Intraday shares traded counted 2.15 million, which was 23.29% higher than its 30-day average trading volume of 2.80M. IP’s previous close was $59.23 while the outstanding shares total 392.80M.
Investors have identified the Packaging & Containers company International Paper Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $24.32 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
International Paper Company (IP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 12.17 billion total, with 8.39 billion as their total liabilities.
IP were able to record 423.0 million as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by 192.0 million. In cash movements, the company had a total of 512.0 million as operating cash flow.
Potential earnings growth for International Paper Company (IP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/29/2021 quarter of the year, International Paper Company recorded a total of 5.36 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.21% coming in sequential stages and their sales for the 07/29/2021 quarter increasing by 2.31%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.85 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.52 billion. This allows shareholders to hold on to 392.80M with the recently reported earning now reading 0.89 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (0.76 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.65 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IP sounds very interesting.
Is the stock of IP attractive?
In related news, Senior Vice President, SIMS JOHN V sold 15,000 shares of the company’s stock in a transaction that recorded on May 21. The sale was performed at an average price of 63.46, for a total value of 951,842. As the sale deal closes, the Senior Vice President, SIMS JOHN V now sold 8,909 shares of the company’s stock, valued at 560,109. Also, Senior Vice President, PLATH THOMAS J. sold 3,400 shares of the company’s stock in a deal that was recorded on May 04. The shares were price at an average price of 59.47 per share, with a total market value of 202,205. Following this completion of acquisition, the Senior Vice President, Nicholls Timothy S now holds 32,999 shares of the company’s stock, valued at 1,779,567. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
8 out of 16 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on International Paper Company. 3 analysts has assigned a Sell rating on the IP stock. The 12-month mean consensus price target for the company’s shares has been set at $65.57.