Are International Paper Officials Selling Stock On Inside Sector Knowledge?
The stock values of paper and packaging companies fell across the board on Monday, including shares of International Paper Company (NYSE:IP), after a Deutsche Bank analyst slashed his ratings from a number of the companies.
Interestingly, insiders at International Paper sold millions of dollars worth of company stock before the entire sector took a downward turn after the analysts' downgrade.
According to Bloomberg, Deutsche's Mark Wild lowered his ratings for International Paper and two other firms, saying that the company's share prices have risen significantly before an expected seasonal price increase.
"While the market seems to be assuming the hike is a 'done deal,' we are not convinced," Wilde wrote in a note to investors. "We think real questions remain about whether producers can implement and then maintain the increase. If anything, we've become a bit more cautious."
Insider trading reports show John Faraci, chairman and CEO of International Paper, sold 61,500 shares in the last month for a total of 2.2 million.
Why do you think these officials are cashing out?
Read Full Insider Report For:
IP |
