Graphic Packaging Holding Company (NYSE:GPK) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts are cautious on Graphic Packaging, with 12 brokerages giving the stock an average recommendation of “Reduce.” Three analysts rate it a sell and nine rate it a hold, with a consensus price target of about $11.03.
• Recent earnings topped expectations, as the company reported $0.09 EPS versus the $0.06 estimate and revenue of $2.16 billion versus $2.05 billion expected. Revenue rose 1.7% year over year, though EPS was well below the prior year’s $0.51.
• The stock also offers a dividend yield of roughly 4.0%, with a quarterly payout of $0.11 per share. An insider purchase by Director Jeffrey Stafeil and continued heavy institutional ownership were also noted.

Shares of Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) have been given an average recommendation of "Reduce" by the twelve brokerages that are presently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a sell rating and nine have issued a hold rating on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $11.0333.

Several research firms recently issued reports on GPK. Truist Financial dropped their target price on Graphic Packaging from $14.00 to $11.00 and set a "hold" rating on the stock in a report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft began coverage on Graphic Packaging in a research report on Wednesday, April 1st. They set a "hold" rating and a $9.60 price target on the stock. Zacks Research raised Graphic Packaging from a "strong sell" rating to a "hold" rating in a report on Monday, June 1st. Bank of America began coverage on shares of Graphic Packaging in a research note on Tuesday, July 14th. They issued a "neutral" rating and a $12.00 target price for the company. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Graphic Packaging in a report on Wednesday, June 24th.

Graphic Packaging Stock Performance

Shares of GPK opened at $11.08 on Thursday. Graphic Packaging has a 12 month low of $8.78 and a 12 month high of $23.76. The firm has a fifty day simple moving average of $10.57 and a 200 day simple moving average of $11.34. The stock has a market capitalization of $3.28 billion, a price-to-earnings ratio of 12.05 and a beta of 0.66. The company has a current ratio of 1.41, a quick ratio of 0.59 and a debt-to-equity ratio of 1.60.

Graphic Packaging (NYSE:GPK - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The industrial products company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.03. Graphic Packaging had a net margin of 3.17% and a return on equity of 12.62%. The firm had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same period in the previous year, the business earned $0.51 EPS. The company's revenue was up 1.7% compared to the same quarter last year. Graphic Packaging has set its FY 2026 guidance at 0.750-1.150 EPS. Research analysts forecast that Graphic Packaging will post 0.75 EPS for the current fiscal year.

Graphic Packaging Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Monday, June 15th were paid a dividend of $0.11 per share. The ex-dividend date was Monday, June 15th. This represents a $0.44 annualized dividend and a dividend yield of 4.0%. Graphic Packaging's payout ratio is currently 47.83%.

Insider Transactions at Graphic Packaging

In other news, Director Jeffrey Stafeil bought 17,878 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The stock was acquired at an average cost of $11.19 per share, for a total transaction of $200,054.82. Following the purchase, the director owned 17,878 shares of the company's stock, valued at approximately $200,054.82. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP raised its stake in Graphic Packaging by 282.0% in the 3rd quarter. Quarry LP now owns 1,547 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 1,142 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in Graphic Packaging by 13,971.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,970 shares of the industrial products company's stock worth $30,000 after purchasing an additional 1,956 shares during the period. MassMutual Private Wealth & Trust FSB increased its holdings in shares of Graphic Packaging by 649.6% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 2,039 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 1,767 shares during the last quarter. Danske Bank A S bought a new position in shares of Graphic Packaging in the third quarter valued at about $45,000. Finally, Physician Wealth Advisors Inc. raised its position in shares of 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 during the period. 99.67% of the stock is currently owned by institutional investors.

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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