Graphic Packaging Holding Company (NYSE:GPK) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Graphic Packaging Holding Company has an average analyst rating of “Reduce” from 12 brokerages, with four sell ratings and eight hold ratings. The consensus 1-year price target is about $12.33.
• The company recently reported better-than-expected Q1 results, with EPS of $0.09 versus estimates of $0.06 and revenue of $2.16 billion versus $2.05 billion expected. Management also reaffirmed long-term guidance, while analysts currently expect $0.85 EPS for the year.
• Investor sentiment remains pressured by class action litigation alleging inventory issues, weaker demand, higher costs, and overstated business strength. At the same time, CEO Robbert Rietbroek bought shares in March, and the stock also carries a 4.1% dividend yield.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) has been assigned an average recommendation of "Reduce" from the twelve ratings firms that are currently covering the company, Marketbeat reports. Four research analysts have rated the stock with a sell rating and eight have issued a hold rating on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $12.3250.

A number of equities analysts recently weighed in on the stock. Citigroup lifted their price objective on shares of Graphic Packaging from $10.00 to $11.00 and gave the company a "neutral" rating in a research report on Thursday. Truist Financial lowered their price objective on shares of Graphic Packaging from $14.00 to $11.00 and set a "hold" rating on the stock in a research report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Graphic Packaging in a research report on Wednesday, April 1st. They issued a "hold" rating and a $9.60 price objective on the stock. UBS Group lifted their price objective on shares of Graphic Packaging from $10.00 to $12.00 and gave the company a "neutral" rating in a research report on Thursday. Finally, Wells Fargo & Company lowered their price objective on shares of Graphic Packaging from $9.00 to $8.00 and set an "underweight" rating on the stock in a research report on Tuesday, April 14th.

Graphic Packaging Stock Performance

Shares of GPK opened at $10.60 on Friday. The company has a current ratio of 1.41, a quick ratio of 0.52 and a debt-to-equity ratio of 1.60. The firm has a market cap of $3.14 billion, a PE ratio of 11.53 and a beta of 0.61. The company's 50 day simple moving average is $10.03 and its 200-day simple moving average is $13.39. Graphic Packaging has a 12-month low of $8.78 and a 12-month high of $23.76.

Graphic Packaging (NYSE:GPK - Get Free Report) last announced its earnings results on Tuesday, May 5th. The industrial products company reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.03. The business had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.05 billion. Graphic Packaging had a net margin of 3.17% and a return on equity of 12.62%. The company's revenue for the quarter was up 1.7% compared to the same quarter last year. During the same period last year, the firm posted $0.51 earnings per share. Graphic Packaging has set its FY 2026 guidance at 0.750-1.150 EPS. As a group, equities analysts predict that Graphic Packaging will post 0.85 EPS for the current year.

Graphic Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 8th. Investors of record on Sunday, March 15th were given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date was Friday, March 13th. Graphic Packaging's dividend payout ratio (DPR) is 47.83%.

Graphic Packaging News Summary

Here are the key news stories impacting Graphic Packaging this week:

• Negative Sentiment: Several firms, including Holzer & Holzer, Pomerantz, Gainey McKenna & Egleston, Bernstein Liebhard, and Schall, announced or promoted class action litigation against Graphic Packaging, reinforcing investor concerns about alleged securities fraud and disclosure issues. Article Title
• Negative Sentiment: The lawsuit alleges Graphic Packaging downplayed inventory problems, weaker demand and volumes, higher costs, and overstated the strength of its business model, which could weigh on sentiment toward the stock. Article Title
• Neutral Sentiment: UBS raised its price target on Graphic Packaging to $12 from $10 while keeping a neutral rating, suggesting some valuation support but no clear bullish shift. Article Title
• Neutral Sentiment: Other commentary pieces highlighted valuation after a volatile year and a recent rebound, but did not provide a major new catalyst for the shares. Article Title

Insiders Place Their Bets

In other news, CEO Robbert Rietbroek acquired 44,278 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were purchased at an average cost of $11.32 per share, for a total transaction of $501,226.96. Following the transaction, the chief executive officer directly owned 44,278 shares in the company, valued at approximately $501,226.96. This represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. 1.41% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Graphic Packaging

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC lifted its holdings in Graphic Packaging by 2.0% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 19,512,601 shares of the industrial products company's stock valued at $295,616,000 after acquiring an additional 373,624 shares during the period. Eminence Capital LP boosted its holdings in Graphic Packaging by 67.5% during the fourth quarter. Eminence Capital LP now owns 12,811,941 shares of the industrial products company's stock worth $192,948,000 after buying an additional 5,163,806 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Graphic Packaging by 18.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,728,031 shares of the industrial products company's stock worth $176,626,000 after buying an additional 1,824,110 shares in the last quarter. JPMorgan Chase & Co. grew its position in Graphic Packaging by 32.6% during the third quarter. JPMorgan Chase & Co. now owns 11,501,251 shares of the industrial products company's stock worth $225,080,000 after buying an additional 2,828,094 shares during the period. Finally, State Street Corp increased its holdings in Graphic Packaging by 0.8% in the fourth quarter. State Street Corp now owns 9,877,303 shares of the industrial products company's stock valued at $149,808,000 after buying an additional 81,300 shares in the last quarter. Institutional investors and hedge funds own 99.67% of the company's stock.

About Graphic Packaging

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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