Fiduciary Family Office LLC Makes New Investment in Graphic Packaging Holding Company (NYSE:GPK)

Key Points

• Fiduciary Family Office LLC invested approximately $559,000 in Graphic Packaging Holding Company, acquiring 21,520 shares of its stock during the first quarter.
• Graphic Packaging has announced a $1.50 billion stock buyback plan to repurchase up to 23.3% of its shares, indicating confidence from the company's leadership regarding its stock valuation.
• The company recently declared a quarterly dividend of $0.11 per share, representing an annualized yield of 1.9% with a payout ratio of 24.86%.

Fiduciary Family Office LLC bought a new stake in shares of Graphic Packaging Holding Company (NYSE:GPK - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 21,520 shares of the industrial products company's stock, valued at approximately $559,000.

A number of other hedge funds have also added to or reduced their stakes in the stock. Victory Capital Management Inc. raised its holdings in Graphic Packaging by 1,004.9% during the first quarter. Victory Capital Management Inc. now owns 9,240,697 shares of the industrial products company's stock valued at $239,888,000 after acquiring an additional 8,404,340 shares during the period. Marshall Wace LLP raised its holdings in Graphic Packaging by 735.3% during the fourth quarter. Marshall Wace LLP now owns 2,446,843 shares of the industrial products company's stock valued at $66,456,000 after acquiring an additional 2,153,925 shares during the period. Raymond James Financial Inc. bought a new stake in Graphic Packaging during the fourth quarter valued at about $25,669,000. Ensign Peak Advisors Inc grew its position in shares of Graphic Packaging by 783.7% during the fourth quarter. Ensign Peak Advisors Inc now owns 1,059,988 shares of the industrial products company's stock valued at $28,789,000 after purchasing an additional 940,035 shares in the last quarter. Finally, Vanguard Group Inc. grew its position in shares of Graphic Packaging by 3.1% during the first quarter. Vanguard Group Inc. now owns 30,655,111 shares of the industrial products company's stock valued at $795,807,000 after purchasing an additional 929,764 shares in the last quarter. 99.67% of the stock is currently owned by hedge funds and other institutional investors.

Graphic Packaging Trading Down 1.7%

NYSE GPK traded down $0.40 during trading on Thursday, hitting $22.72. The stock had a trading volume of 1,776,805 shares, compared to its average volume of 3,076,789. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.56 and a current ratio of 1.43. The stock has a market capitalization of $6.73 billion, a price-to-earnings ratio of 12.82, a P/E/G ratio of 7.69 and a beta of 0.73. Graphic Packaging Holding Company has a one year low of $20.86 and a one year high of $30.70. The stock has a 50 day simple moving average of $22.11 and a 200 day simple moving average of $24.09.

Graphic Packaging (NYSE:GPK - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The industrial products company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.02. The business had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.13 billion. Graphic Packaging had a net margin of 6.18% and a return on equity of 21.13%. Sell-side analysts predict that Graphic Packaging Holding Company will post 2.47 earnings per share for the current year.

Graphic Packaging Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Sunday, October 5th. Investors of record on Monday, September 15th will be issued a $0.11 dividend. The ex-dividend date is Monday, September 15th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.9%. Graphic Packaging's payout ratio is presently 24.86%.

Graphic Packaging announced that its Board of Directors has initiated a share repurchase plan on Thursday, May 1st that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to buy up to 23.3% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GPK. BNP Paribas Exane lowered Graphic Packaging from an "outperform" rating to a "neutral" rating in a research report on Wednesday, June 25th. Royal Bank Of Canada cut their price objective on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating for the company in a research report on Wednesday, June 18th. UBS Group assumed coverage on Graphic Packaging in a research report on Wednesday, June 4th. They set a "neutral" rating and a $24.00 price objective for the company. Truist Financial dropped their price target on Graphic Packaging from $24.00 to $23.00 and set a "hold" rating for the company in a research report on Friday, July 11th. Finally, Wells Fargo & Company lifted their price target on Graphic Packaging from $21.00 to $23.00 and gave the stock an "equal weight" rating in a research report on Friday, July 18th. Six analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $26.38.

Insider Activity

In related news, Director Philip R. Martens sold 7,015 shares of the business's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $21.80, for a total value of $152,927.00. Following the completion of the sale, the director owned 26,811 shares in the company, valued at approximately $584,479.80. The trade was a 20.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.41% of the company's stock.

Graphic Packaging Profile

Graphic Packaging Holding Company, together with its subsidiaries, designs, produces, and sells consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products. It operates through three segments: Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging.