Graphic Packaging (NYSE:GPK) Hits New 1-Year Low - Here's What Happened

Key Points

• Graphic Packaging shares hit a new 52-week low, trading as low as $20.65 before closing at $20.88, reflecting a significant drop in stock value.
• Analysts have mixed opinions on the stock, with price targets ranging from $23.00 to $28.00, and a consensus rating of "Hold" with an average target price of $26.38.
• The company will pay a quarterly dividend of $0.11 on October 8th, representing a 2.1% yield, with a payout ratio of 24.86%.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The stock traded as low as $20.65 and last traded at $20.88, with a volume of 6508007 shares. The stock had previously closed at $21.97.

Analysts Set New Price Targets

Several research firms recently commented on GPK. UBS Group began coverage on Graphic Packaging in a report on Wednesday, June 4th. They set a "neutral" rating and a $24.00 target price on the stock. Truist Financial dropped their target price on Graphic Packaging from $24.00 to $23.00 and set a "hold" rating on the stock in a report on Friday, July 11th. BNP Paribas Exane cut Graphic Packaging from an "outperform" rating to a "neutral" rating in a report on Wednesday, June 25th. Wells Fargo & Company upped their price target on Graphic Packaging from $21.00 to $23.00 and gave the stock an "equal weight" rating in a report on Friday, July 18th. Finally, Bank of America reduced their price target on Graphic Packaging from $31.00 to $28.00 and set a "buy" rating for the company in a report on Wednesday, July 9th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Graphic Packaging currently has a consensus rating of "Hold" and an average target price of $26.38.

Graphic Packaging Stock Down 5.0%

The company has a current ratio of 1.43, a quick ratio of 0.56 and a debt-to-equity ratio of 1.68. The company has a market cap of $6.18 billion, a price-to-earnings ratio of 11.79, a PEG ratio of 7.57 and a beta of 0.75. The business has a fifty day moving average of $22.34 and a two-hundred day moving average of $23.61.

Graphic Packaging (NYSE:GPK - Get Free Report) last posted 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. Graphic Packaging had a return on equity of 21.13% and a net margin of 6.18%.The company had revenue of $2.20 billion for the quarter, compared to analysts' expectations of $2.13 billion. Graphic Packaging has set its FY 2025 guidance at 1.900-2.20 EPS. As a group, equities analysts anticipate that Graphic Packaging Holding Company will post 2.47 EPS for the current fiscal year.

Graphic Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 8th. Investors of record on Monday, September 15th will be issued a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 2.1%. The ex-dividend date is Monday, September 15th. Graphic Packaging's payout ratio is presently 24.86%.

Insider Activity

In related news, Director Philip R. Martens sold 7,015 shares of Graphic Packaging stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $21.80, for a total value of $152,927.00. Following the sale, the director directly owned 26,811 shares in the company, valued at approximately $584,479.80. The trade was a 20.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Joseph P. Yost sold 30,000 shares of Graphic Packaging stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $22.72, for a total value of $681,600.00. Following the completion of the sale, the executive vice president owned 255,203 shares in the company, valued at approximately $5,798,212.16. The trade was a 10.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 93,752 shares of company stock worth $2,073,663. 1.41% of the stock is currently owned by insiders.

Institutional Trading of Graphic Packaging

A number of hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in Graphic Packaging by 3.1% in the 1st quarter. Vanguard Group Inc. now owns 30,655,111 shares of the industrial products company's stock valued at $795,807,000 after acquiring an additional 929,764 shares during the last quarter. American Century Companies Inc. raised its holdings in Graphic Packaging by 19.1% in the 2nd quarter. American Century Companies Inc. now owns 22,022,347 shares of the industrial products company's stock valued at $464,011,000 after acquiring an additional 3,533,846 shares during the last quarter. Allspring Global Investments Holdings LLC raised its holdings in Graphic Packaging by 7.7% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 17,636,296 shares of the industrial products company's stock valued at $385,353,000 after acquiring an additional 1,264,922 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in Graphic Packaging by 11.8% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 11,570,040 shares of the industrial products company's stock valued at $243,781,000 after purchasing an additional 1,218,848 shares during the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in Graphic Packaging by 1,004.9% in the 1st quarter. Victory Capital Management Inc. now owns 9,240,697 shares of the industrial products company's stock valued at $239,888,000 after purchasing an additional 8,404,340 shares during the last quarter. Institutional investors and hedge funds own 99.67% of the company's stock.

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.

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