The Case for and Against International Paper Company (IP)

International Paper Company (IP) is an interesting player in the Consumer Goods space, with a focus on Packaging & Containers. The stock has been active on the tape, currently trading at $58.66, down from yesterday’s close by -0.59%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

International Paper Company (IP) currently trades with a market capitalization of $24.37 Billion. That value represents a market adjusting for revenues that have been growing by 9.53 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $281 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.12 on a per share basis this quarter. Perhaps, that suggests something about why 1.34% of the outstanding share supply is held by institutional investors.



Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, International Paper Company recorded a 52-week high of $66.94. It is now trading 8.28% off that level. The stock is trading $53.96 its 50-day moving average by -4.7%. The stock carved out a 52-week low down at $50.00.

In recent action, International Paper Company (IP) has made a move of +8.21% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.99% with $405.82 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of IP.

SHARE
Previous articleDrilling Down Into Delek US Holdings, Inc. (DK)
Next articleJust the Facts on Retail Properties of America, Inc. (RPAI)