International Paper Co. (IP) Shares Active after Upgrade at Jefferies Group

International Paper Co. (NYSE: IP) shares rose in value on Friday January 20 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.

The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.

Analysts at Jefferies Group upgraded shares of International Paper Co. (NYSE: IP) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $54.68. A number of other analysts have spoken on the company recently, and the company has secured a consensus one-year price target of $53.00, a decrease compared to the opening price of $53.75, a difference of 9.85 percent. Typically, after analysts assign an upgrade report on a stock, they will later issue recurring updates, often followed by a price target change.

Shares of International Paper Co. (NYSE: IP) opened at $53.75 yesterday and traded in a range between, $53.13 and $53.89, and last traded at $53.78, which is an increase of $1.10 compared to the previous closing price.

International Paper Co. (NYSE: IP) currently has a market cap of 22.12B.

International Paper Co. (NYSE: IP) Average Daily Trading Volume

834,519 shares crossed the trading desk yesterday, 87 percent below the average, out of a total float 408,380,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.

International Paper Co. (NYSE: IP) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.

Trades for International Paper Co. (NYSE: IP) have ranged from $32.50 – 54.68, and the stock now has a 50-day MA of $53.24 and 200-day MA of $48.23. Today’s last price is 1.65%% below the 52 week high of $54.68.

Earnings growth is an important factor to consider when buying stocks and investors identify companies that have raised their earnings by at least 25% for a 3 year period.

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