Graphic Packaging Holding Company (NYSE:GPK) Given Average Rating of "Reduce" by Brokerages

Key Points

• Analysts remain cautious on Graphic Packaging: Twelve brokerages give the stock an average “Reduce” rating, with three sells and nine holds. The average 12-month price target is approximately $11.14, near its reported $11.40 share price.
• Graphic Packaging slightly exceeded quarterly expectations, reporting $0.14 EPS versus the $0.12 consensus and $2.19 billion in revenue. However, earnings fell from $0.42 a year earlier and revenue declined 0.7% year over year.
• The company declared a quarterly dividend of $0.11 per share, equivalent to $0.44 annually and a 3.9% yield. Institutional investors hold nearly all of the stock, with ownership reported at 99.67%.

Shares of Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) have been assigned an average recommendation of "Reduce" from the twelve ratings firms that are currently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating and nine have assigned a hold rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $11.1444.

A number of equities research analysts have recently weighed in on GPK shares. Zacks Research raised Graphic Packaging from a "strong sell" rating to a "hold" rating in a report on Monday, June 1st. Citigroup upped their price target on shares of Graphic Packaging from $10.00 to $11.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Bank of America started coverage on shares of Graphic Packaging in a research report on Tuesday, July 14th. They set a "neutral" rating and a $12.00 price target on the stock. UBS Group lifted their price objective on shares of Graphic Packaging from $11.00 to $12.00 and gave the stock a "neutral" rating in a research note on Thursday, August 6th. Finally, JPMorgan Chase & Co. initiated coverage on shares of Graphic Packaging in a report on Monday, June 29th. They issued a "neutral" rating and a $11.70 price objective for the company.

Graphic Packaging Price Performance

Graphic Packaging stock opened at $11.40 on Monday. The company has a market capitalization of $3.38 billion, a price-to-earnings ratio of 17.27 and a beta of 0.66. The company has a current ratio of 1.38, a quick ratio of 0.60 and a debt-to-equity ratio of 1.58. Graphic Packaging has a 12 month low of $8.78 and a 12 month high of $23.47. The stock's 50 day moving average is $10.94 and its 200-day moving average is $10.87.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.02. Graphic Packaging had a return on equity of 9.95% and a net margin of 2.25%.The business had revenue of $2.19 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same period in the previous year, the company posted $0.42 EPS. The firm's quarterly revenue was down .7% on a year-over-year basis. Graphic Packaging has set its FY 2026 guidance at 0.650-0.900 EPS. Equities research analysts expect that Graphic Packaging will post 0.68 EPS for the current year.

Graphic Packaging Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Tuesday, September 15th will be given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Tuesday, September 15th. Graphic Packaging's payout ratio is presently 66.67%.

Hedge Funds Weigh In On Graphic Packaging

A number of hedge funds have recently added to or reduced their stakes in GPK. Bell Investment Advisors Inc bought a new stake in shares of Graphic Packaging during the 2nd quarter valued at $25,000. Quarry LP increased its position in shares of Graphic Packaging by 282.0% in the third quarter. Quarry LP now owns 1,547 shares of the industrial products company's stock worth $30,000 after purchasing an additional 1,142 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in Graphic Packaging by 13,971.4% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,970 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 1,956 shares in the last quarter. Physician Wealth Advisors Inc. raised its stake in Graphic Packaging by 2,321.1% in the first quarter. Physician Wealth Advisors Inc. now owns 3,220 shares of the industrial products company's stock valued at $32,000 after purchasing an additional 3,087 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in Graphic Packaging by 1,075.7% during the second quarter. Versant Capital Management Inc now owns 3,480 shares of the industrial products company's stock worth $37,000 after purchasing an additional 3,184 shares during the period. Institutional investors own 99.67% of the company's stock.

Graphic Packaging Company Profile

Graphic Packaging Holding Company is a leading provider of sustainable paperboard packaging solutions, offering a broad portfolio of products designed for food, beverage and other consumer goods markets. The company specializes in the manufacture of containerboard, folding cartons and engineered fill materials, as well as beverage packaging systems including paperboard cups, carriers and related components.

Through a network of manufacturing facilities across North America, Europe and Latin America, Graphic Packaging serves a diverse customer base that includes major consumer packaged goods companies, quick-service restaurants and retail chains.

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