A Hedged Approach To Trading International Paper Company (IP)

The stock of International Paper Company (NYSE:IP) has been Downgraded to Underweight from Sector Weight by KeyBanc Capital Markets in its latest research note that was published on July 15. IP was given a price target of$38 by KeyBanc Capital Markets, with other Wall Street analysts also giving their reports regarding the stock. Citigroup analysts have downgraded their rating of IP stock from Buy to Neutral in a separate flash note to investors on July 11. Analysts at Stephens downgraded the stock to a Equal-Weight call from its previous Overweight stance, in a research note that dated back to June 24.

International’s stock is covered by 15 analysts, with 3 of them rating the stock as Buy. It has been deemed to have strong buy by 1 of the analysts, 10 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 5 analysts. 1 of them rated it as strong buy with 9 of them recommended investors to Hold on to the stock. Meanwhile, none analyst(s) rated it as a sell. The above data shows that IP has an average analyst rating of 2.60.

International Paper Company, which has current market capitalization of above $16 Billion, published its last quarter earnings on June 30, 2019. The company was able to amass $5667 million in revenue. This figure is $104.19 million more than what analysts had expected which was $5771.19 million. During the first quarter of the year, International also recorded $1.15 earnings per share (EPS) which is $0.15 above the $1 estimated by Thomson Reuter’s analyst, leading to a surprise factor of 15.57%.

IP surged by $1.97 during the normal trading session on Tuesday and reaching a high of $40.51 during the day while it closed the day at $40.05. The International stock had a high trading volume of 4.10 million shares on that day, which is high compared to the average daily volume of 3.29M shares. IP has also gained 0.20% of its value over the past 7 days. However, the stock has declined by 10.48% in the 3 months of the year. Over the past six months meanwhile, it has lost 14.84% while it has lost 0.77% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -13.26% from its 3 months high price. However, taking another look at IP will indicate that it is trading +4.79% away from its 90-day low. Looking at the bigger picture, the International Paper Company stock has dropped by -27.12% from its 52-week high while it has surged by +6.66% from its 52-week low price.

On July 26, 2019 Ryan Sharon R., SVP, GC and Corp Secretary sold 22507 shares of the company. The average price for that transaction was $44.97 per share, which meant that Ryan Sharon R. earned $1012140 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Senior Vice President, PLATH THOMAS J. selling 1000 shares of this stock on May 17, 2019. The average selling price for the stock was $45.17 per share, with the sold stock accruing $45170. Following this transaction, the Senior Vice President PLATH THOMAS J. now holds 53316 shares of the company, which is worth around $2054799.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 23.02%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 23.02%. Over the past 20 days, International’s Stochastic %K stood at 11.21% while its Stochastic %D was revealed to be 13.46%.