Graphic Packaging (NYSE:GPK) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Graphic Packaging reported earnings of $0.42 per share for the quarter, falling short of analysts' expectations of $0.45.
• The company announced a quarterly dividend of $0.11, translating to an annualized yield of 1.90% with a payout ratio of 21.46%.
• Institutional investors own 99.67% of Graphic Packaging, highlighting significant institutional interest in the stock.

Graphic Packaging (NYSE:GPK - Get Free Report) issued its earnings results on Tuesday. The industrial products company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.02, Zacks reports. Graphic Packaging had a return on equity of 21.13% and a net margin of 6.18%. The firm had revenue of $2.20 billion for the quarter, compared to analysts' expectations of $2.13 billion. Graphic Packaging updated its FY 2025 guidance to 1.900-2.20 EPS.

Graphic Packaging Price Performance

GPK stock traded down $0.87 during trading on Friday, hitting $21.49. The stock had a trading volume of 5,163,142 shares, compared to its average volume of 3,070,346. The stock has a market capitalization of $6.37 billion, a P/E ratio of 12.14 and a beta of 0.71. The company's 50-day moving average price is $22.11 and its two-hundred day moving average price is $24.42. Graphic Packaging has a twelve month low of $20.86 and a twelve month high of $30.70. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.43 and a quick ratio of 0.73.

Graphic Packaging Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Sunday, October 5th. Investors of record on Monday, September 15th will be paid a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Monday, September 15th. Graphic Packaging's payout ratio is currently 24.86%.

Graphic Packaging announced that its board has initiated a stock buyback program on Thursday, May 1st that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the industrial products company to repurchase up to 23.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Graphic Packaging stock. AQR Capital Management LLC raised its position in Graphic Packaging Holding Company (NYSE:GPK - Free Report) by 36.6% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 171,608 shares of the industrial products company's stock after purchasing an additional 45,944 shares during the quarter. AQR Capital Management LLC owned 0.06% of Graphic Packaging worth $4,453,000 as of its most recent SEC filing. Institutional investors and hedge funds own 99.67% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently issued reports on GPK. Bank of America reduced their target price on Graphic Packaging from $31.00 to $28.00 and set a "buy" rating on the stock in a report on Wednesday, July 9th. Royal Bank Of Canada lowered their price objective on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating for the company in a research note on Wednesday, June 18th. UBS Group initiated coverage on Graphic Packaging in a research report on Wednesday, June 4th. They set a "neutral" rating and a $24.00 target price for the company. BNP Paribas Exane lowered Graphic Packaging from an "outperform" rating to a "neutral" rating in a research report on Wednesday, June 25th. Finally, Wells Fargo & Company boosted their price target on Graphic Packaging from $21.00 to $23.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. Six analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $26.38.

About Graphic Packaging

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.