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Summary

  • 3 insiders sold International Paper stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 3 insiders decreased their holdings by more than 10%.

International Paper Company (NYSE:IP) operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and the Middle East.

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Insider selling during the last 30 days

Here is a table of International Paper's insider activity during the last 30 days.

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Mary LaschingerSVPJune 620,000NoNo178,161 shares10.1%
Thomas KadienSVPJune 522,000NoNo167,747 shares11.6%
John FaraciCEOJune 230,000NoYes1,531,105 shares1.9%

There have been 72,000 shares sold by insiders during the last 30 days. John Faraci sold his shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of International Paper's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 201472,0000
May 201430,0000
April 201430,0000
March 201489,5650
February 201485,3770
January 201410,0000
December 201322,9880
November 201310,0000
October 201310,0000
September 201310,0000
August 201320,0000
July 201328,0000
June 201319,3250
May 201385,3840
April 201310,0000
March 2013155,188

0

February 201397,7500
January 201344,5000

There have been 830,077 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

International Paper reported the first-quarter financial results on April 30 with the following highlights:

Revenue$7.0 billion
Net loss$95 million
Cash$1.3 billion
Debt$11.5 billion

The three insiders sold their shares after this report.

International Paper has negative revenue growth currently.

Outlook

In the second quarter, International Paper is going to experience its heaviest maintenance outage quarter of the year, up $60 million from the first quarter.

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(Source: Earnings presentation)

Competition

International Paper's competitors include Domtar (NYSE:UFS), MeadWestvaco (NYSE:MWV), and UPM-Kymmene Oyj (OTCQX:UPMKY). Here is a table comparing these companies.

CompanyIPUFSMWVUPMKY
Market Cap:20.89B3.01B7.41B9.57B
Employees:69,0009,40016,00020,768
Qtrly Rev Growth (yoy):-0.010.040.010.00
Revenue:29.00B5.44B5.40B13.74B
Gross Margin:0.270.190.190.11
EBITDA:3.79B654.00M811.00M1.54B
Operating Margin:0.080.050.080.06
Net Income:965.00M85.00M353.00M657.05M
EPS:2.142.644.791.23
P/E:22.3834.419.2314.63
PEG (5 yr expected):0.963.572.45N/A
P/S:0.720.541.370.70

International Paper is the only one with negative revenue growth.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
UFS037,343
MWV

0

1,658
UPMKY00

Only International Paper has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling International Paper, and there have not been any insiders buying International Paper during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. International Paper has an insider ownership of 0.67%.

International Paper has a $38 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $38 price target. I would place a stop loss at $50, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, negative revenue growth, and the intensive insider-selling activity.

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Source: International Paper: 3 Different Insiders Have Sold Shares This Month