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

Key Points

• Graphic Packaging hit a new 52-week low of $9.46 (last $9.667) on Wednesday with about 759,906 shares traded, down from a prior close of $9.81.
• Analysts have a consensus rating of Reduce with an average target price of $16.63 after multiple downgrades and price cuts (eight Hold, three Sell ratings noted).
• The stock yields 4.6% (quarterly dividend $0.11; ex-dividend Mar 13, payable Apr 8), and CEO Robbert Rietbroek recently bought 44,278 shares at $11.32, indicating insider buying.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday . The company traded as low as $9.46 and last traded at $9.6670, with a volume of 759906 shares traded. The stock had previously closed at $9.81.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on GPK. Weiss Ratings restated a "sell (d+)" rating on shares of Graphic Packaging in a report on Monday, December 29th. Zacks Research cut shares of Graphic Packaging from a "hold" rating to a "strong sell" rating in a research report on Wednesday, January 14th. Robert W. Baird set a $15.00 price objective on shares of Graphic Packaging in a research report on Wednesday, February 4th. UBS Group lowered their price objective on shares of Graphic Packaging from $19.00 to $17.00 and set a "neutral" rating for the company in a research note on Monday, January 12th. Finally, Citigroup cut their target price on Graphic Packaging from $16.00 to $13.00 and set a "neutral" rating on the stock in a research note on Thursday, February 5th. Eight analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $16.63.

Graphic Packaging Price Performance

The stock has a market cap of $2.84 billion, a P/E ratio of 6.50 and a beta of 0.65. The business's 50 day moving average price is $13.13 and its two-hundred day moving average price is $15.83. The company has a current ratio of 1.30, a quick ratio of 0.52 and a debt-to-equity ratio of 1.50.

Graphic Packaging (NYSE:GPK - Get Free Report) last issued its quarterly earnings data on Monday, March 2nd. The industrial products company reported $0.24 EPS for the quarter. Graphic Packaging had a net margin of 5.15% and a return on equity of 16.58%. The business had revenue of $2.10 billion during the quarter. As a group, sell-side analysts expect that Graphic Packaging Holding Company will post 2.47 earnings per share for the current fiscal year.

Graphic Packaging Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Sunday, March 15th will be given a dividend of $0.11 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $0.44 annualized dividend and a yield of 4.6%. Graphic Packaging's dividend payout ratio (DPR) is currently 29.73%.

Insider Activity at Graphic Packaging

In other Graphic Packaging news, CEO Robbert Rietbroek bought 44,278 shares of Graphic Packaging stock in a transaction dated Wednesday, March 4th. The shares were purchased at an average cost of $11.32 per share, with a total value of $501,226.96. Following the transaction, the chief executive officer directly owned 44,278 shares of the company's stock, valued at $501,226.96. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.41% of the company's stock.

Institutional Investors Weigh In On Graphic Packaging

Hedge funds and other institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted its holdings in Graphic Packaging by 503.6% in the fourth quarter. AQR Capital Management LLC now owns 8,693,765 shares of the industrial products company's stock worth $130,928,000 after acquiring an additional 7,253,473 shares in the last quarter. Eminence Capital LP increased its stake in Graphic Packaging by 67.5% during the 4th quarter. Eminence Capital LP now owns 12,811,941 shares of the industrial products company's stock valued at $192,948,000 after purchasing an additional 5,163,806 shares in the last quarter. UBS Group AG lifted its stake in shares of Graphic Packaging by 123.8% in the fourth quarter. UBS Group AG now owns 9,026,134 shares of the industrial products company's stock worth $135,934,000 after buying an additional 4,992,179 shares in the last quarter. Norges Bank purchased a new stake in shares of Graphic Packaging during the fourth quarter valued at approximately $54,031,000. Finally, American Century Companies Inc. lifted its position 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 in the last quarter. Hedge funds and other institutional investors 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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