International Paper Company (IP)

In the past six months, International Paper Co. (IP) has experienced several notable events impacting its stock. On January 31, 2025, the company completed its acquisition of UK-based DS Smith, a move aimed at creating an industry leader focused on the North American and EMEA regions. Analyst ratings have also influenced the stock, with JP Morgan initiating coverage with an "Overweight" recommendation on March 20, 2025, Wells Fargo downgrading its outlook to "Underweight" on May 9, 2025, and UBS initiating coverage with a "Buy" recommendation on June 4, 2025. Operationally, International Paper has undertaken strategic changes to strengthen its North American operations, including ceasing operations at the Campti, Louisiana containerboard mill on March 31, 2025, and announcing further strategic changes on June 26, 2025, such as exiting the molded fiber business, converting its Reno, Nevada facility, and closing packaging facilities in Marion, Ohio, and a recycling facility in Wichita, Kansas. Additionally, it plans to sell its containerboard mill in Xalapa, Mexico, and recycling plants in Xalapa and Apodaca, Mexico, to Acabados de Papeles Santinados y Absorbentes (APSA).

Demand for International Paper's products and services exhibits seasonality, particularly within its packaging and pulp segments. Packaging paper generally experiences lower demand in the early months of the year, with a peak in the fourth quarter due to online shopping promotions and holiday gift demands. Pulp demand experiences a minor peak season from March to June and a major peak season from September to December. Printing and coated paper demand peaks from March to June and again from September to December, aligning with spring sales events and pre-year promotions. The corrugated board markets are returning to normal seasonality, with demand expected to mildly weaken in the third quarter and improve in the fourth quarter. International Paper's earnings are influenced by these seasonal demand variations and the number of shipping days in a quarter.

International Paper Co. (IP) operates primarily within the Consumer Cyclical sector, specifically in the Packaging & Containers industry. The company is a leading global manufacturer of paper and packaging products, converting renewable fiber sources like wood and recovered paper into essential goods. Its major products include containerboard, corrugated packaging, and cellulose fibers used in various applications such as diapers, tissue products, and personal care items. International Paper also produces printer and copier paper, envelopes, and pulp. The company's industrial packaging division, which produces containerboards and corrugated products, contributes a significant portion of its revenue.

International Paper has a vast global presence, operating in over 150 countries and managing approximately 23 million hectares of forestland. Its manufacturing operations span North America, Latin America, Europe, and North Africa, targeting markets worldwide. The company has a significant number of production sites, with 176 located in the United States as of late 2024. International Paper also maintains a Global Business Services Center in Krakow, Poland, supporting its operations in EMEA and globally.

In the past year, International Paper has reinforced its commitment to sustainability and environmental conservation, positively impacting its brand reputation. The company announced a $15.3 million investment to renew strategic alliances with key conservation partners and emphasizes its role as a global leader in sustainable packaging solutions. Recent initiatives, such as exploring a new sustainable packaging facility in Salt Lake City, Utah, and breaking ground on a new facility in Waterloo, Iowa, demonstrate its commitment to meeting the increasing demand for high-quality, sustainable packaging. The company also highlights its efforts in responsible sourcing and aiding efforts in priority sourcing regions to support nature, climate, and people.

International Paper Co. (IP) is a publicly traded entity with its ownership dispersed among numerous shareholders. Institutional shareholders hold the vast majority of the company's stock, accounting for approximately 92.75% of ownership. Major institutional owners include Vanguard Group Inc, Price T Rowe Associates Inc /md/, BlackRock, Inc., Capital Research Global Investors, State Street Corp, Fmr Llc, Capital International Investors, Bank of New York Mellon Corp, Geode Capital Management LLC, and Jpmorgan Chase Co. Individual investors hold about 0.36% of the shares, while insiders hold approximately 1.45%. Vanguard Group Inc is the largest individual shareholder, owning 11.86% of the company's shares.