Graphic Packaging (NYSE:GPK) Hits New 12-Month Low - Here's Why

Key Points

• Graphic Packaging (GPK) reached a new 12-month low, trading down to $19.45, with a significant trading volume of 2,185,950 shares.
• Equities analysts have adjusted their target prices for GPK, with estimates ranging from $20.00 by Wells Fargo to $28.00 by Bank of America, maintaining a consensus rating of "Hold."
• The company announced a quarterly dividend of $0.11, representing an annualized dividend of $0.44 and a yield of 2.3%, with a payout ratio of 24.86%.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $19.45 and last traded at $19.49, with a volume of 2185950 shares changing hands. The stock had previously closed at $19.51.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on GPK shares. Truist Financial cut their target price on Graphic Packaging from $24.00 to $23.00 and set a "hold" rating on the stock in a research report on Friday, July 11th. Royal Bank Of Canada reduced their target price on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating on the stock in a research note on Wednesday, June 18th. Wells Fargo & Company reduced their target price on Graphic Packaging from $23.00 to $20.00 and set an "equal weight" rating on the stock in a research note on Wednesday, September 17th. 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 research note on Wednesday, July 9th. Finally, BNP Paribas Exane lowered Graphic Packaging from an "outperform" rating to a "neutral" rating in a research note on Wednesday, June 25th. Four equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Graphic Packaging currently has a consensus rating of "Hold" and an average price target of $26.00.

Graphic Packaging Trading Down 0.1%

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 stock has a 50-day simple moving average of $22.03 and a two-hundred day simple moving average of $23.05. The firm has a market capitalization of $5.78 billion, a P/E ratio of 11.02, a price-to-earnings-growth ratio of 6.63 and a beta of 0.76.

Graphic Packaging (NYSE:GPK - Get Free Report) last issued its earnings results on Tuesday, July 29th. The industrial products company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.02. The business had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.13 billion. Graphic Packaging had a return on equity of 21.13% and a net margin of 6.18%. Graphic Packaging has set its FY 2025 guidance at 1.900-2.20 EPS. On average, equities research analysts anticipate that Graphic Packaging Holding Company will post 2.47 earnings per share for the current year.

Graphic Packaging Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 8th. Stockholders of record on Monday, September 15th will be given a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, September 15th. Graphic Packaging's payout ratio is presently 24.86%.

Insider Buying and Selling at Graphic Packaging

In other news, Director Philip R. Martens sold 56,737 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $21.84, for a total value of $1,239,136.08. Following the completion of the transaction, the director directly owned 33,826 shares of the company's stock, valued at approximately $738,759.84. The trade was a 62.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Joseph P. Yost sold 30,000 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $22.72, for a total value of $681,600.00. Following the transaction, the executive vice president directly owned 255,203 shares in the company, valued at $5,798,212.16. This represents a 10.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 93,752 shares of company stock valued at $2,073,663. Corporate insiders own 1.41% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Squarepoint Ops LLC purchased a new stake in Graphic Packaging during the 2nd quarter valued at about $2,415,000. Thrivent Financial for Lutherans boosted its position in Graphic Packaging by 0.9% during the second quarter. Thrivent Financial for Lutherans now owns 71,049 shares of the industrial products company's stock worth $1,497,000 after purchasing an additional 660 shares in the last quarter. State of Wyoming boosted its position in Graphic Packaging by 96.1% during the second quarter. State of Wyoming now owns 3,527 shares of the industrial products company's stock worth $74,000 after purchasing an additional 1,728 shares in the last quarter. FORA Capital LLC boosted its position in Graphic Packaging by 138.8% during the second quarter. FORA Capital LLC now owns 75,683 shares of the industrial products company's stock worth $1,595,000 after purchasing an additional 43,992 shares in the last quarter. Finally, Vident Advisory LLC boosted its position in Graphic Packaging by 33.6% during the second quarter. Vident Advisory LLC now owns 15,921 shares of the industrial products company's stock worth $335,000 after purchasing an additional 4,000 shares in the last quarter. 99.67% of the stock is owned by institutional investors and hedge funds.

Graphic Packaging Company Profile

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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