International paper exec sells $26.2k in stock

Published 16/07/2024, 14:40
International paper exec sells $26.2k in stock

MEMPHIS, TN – Kathryn D. Sullivan, a board director at International Paper Co (NYSE:IP), has sold 600 shares of company stock for a total value of $26,208, according to a recent SEC filing. The transaction took place on July 15, 2024, with shares sold at a price of $43.68 each.

The sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Sullivan on November 14, 2023. Rule 10b5-1 plans allow company insiders to set up predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information, thereby helping to avoid potential accusations of insider trading.

Following the transaction, Sullivan's remaining stake in International Paper Co consists of 42,202 shares. The filing noted that this figure includes shares acquired through dividend equivalents, which are part of the company's Long-Term Incentive Plan. These dividends vest concurrently with the related award.

International Paper Co, headquartered in Memphis, Tennessee, is a leading global producer of renewable fiber-based packaging, pulp, and paper products. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol IP.

This recent transaction was signed off by Amy M. Beeson, who is acting as Attorney-in-Fact for Dr. Sullivan, with the power of attorney documentation on file. Investors and the market often monitor insider sales as they may provide insights into an executive’s perspective on the company's current valuation or its prospects.

In other recent news, International Paper has seen significant developments. Financial services firm Stifel initiated coverage on the company with a Hold rating, anticipating a share price of $48.70 following a potential merger with SMDS. Seaport Global Securities upgraded the company's stock from Neutral to Buy, citing improved profitability and potential for margin improvement. Truist Securities and Jefferies also upgraded their ratings on International Paper, raising their price targets to $52.00 and $57.00 respectively.

Wells Fargo increased its price target for International Paper to $41, maintaining an Equal Weight rating. The company also welcomed Jamie A. Beggs and Scott A. Tozier to its Board of Directors, expected to bring financial acumen and strategic insight. These recent developments come amidst a strategic shift by the company's new CEO, which analysts believe could enhance shareholder value.

However, Truist Securities expressed concerns about potential challenges for International Paper's Global Cellulose Fibers business following Fibre Excellence's plans to add fluff pulp capacity in France. These are the recent developments for the company, providing investors with a snapshot of its current state.

InvestingPro Insights

As investors digest the news of Kathryn D. Sullivan's recent stock sale, a look at International Paper Co's (NYSE:IP) current financial metrics and analyst sentiment could provide a broader context. According to InvestingPro data, International Paper Co has a market capitalization of $15.32 billion and is trading at a price-to-earnings (P/E) ratio of 88.81, which is considerably high and might indicate that the stock is currently valued at a premium compared to its earnings. However, when adjusted for the last twelve months as of Q1 2024, the P/E ratio stands at a lower 26.3, suggesting a more favorable earnings picture over the recent term.

Despite a challenging revenue environment with a -11.6% revenue growth over the last twelve months as of Q1 2024, International Paper Co has maintained a gross profit margin of 27.57%. This demonstrates the company's ability to retain a significant portion of sales as gross profit. Additionally, the company has a notable dividend yield of 4.19% as of May 23, 2024, which is particularly appealing for income-seeking investors, especially considering the company's track record of maintaining dividend payments for 54 consecutive years—an InvestingPro Tip that underscores its commitment to shareholder returns.

Another InvestingPro Tip points to the company's strong performance over the last three months, with a price total return of 24.28%. This robust short-term return, along with the fact that the company's shares are trading near their 52-week high, at 93.12% of the peak, can be indicative of positive market sentiment towards International Paper Co.

For investors looking for a deeper dive into the financials and future prospects of International Paper Co, there are additional InvestingPro Tips available. With a subscription, users can access a wealth of analytical insights and data points to inform their investment decisions. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Visit InvestingPro for a total of 9 additional tips that could help you make a more informed decision regarding International Paper Co.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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