Graphic Packaging (NYSE:GPK) Hits New 52-Week Low - Time to Sell?

Key Points

• Graphic Packaging's share price reached a new 52-week low of $19.00, indicating a significant decline in performance, as it traded with a volume of 112,759 shares.
• Analyst ratings have generally downgraded the stock, with price targets reduced by firms such as Citigroup and Wells Fargo; however, there remains a consensus "Hold" rating from analysts.
• The company recently announced a quarterly dividend of $0.11 per share, with a dividend yield of 2.3% amidst ongoing trading and investor activity.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $19.00 and last traded at $19.08, with a volume of 112759 shares changing hands. The stock had previously closed at $19.37.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Citigroup lowered their price objective on shares of Graphic Packaging from $23.00 to $21.00 and set a "neutral" rating for the company in a research report on Monday. BNP Paribas Exane downgraded shares of Graphic Packaging from an "outperform" rating to a "neutral" rating in a report on Wednesday, June 25th. Royal Bank Of Canada cut their price objective on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating on the stock in a report on Wednesday, June 18th. Wells Fargo & Company reduced their price objective on Graphic Packaging from $23.00 to $20.00 and set an "equal weight" rating on the stock in a research report on Wednesday, September 17th. Finally, UBS Group set a $20.00 target price on Graphic Packaging in a research report on Monday. Four equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $24.38.

Graphic Packaging Price Performance

The stock has a market cap of $5.63 billion, a P/E ratio of 10.72, a price-to-earnings-growth ratio of 6.58 and a beta of 0.74. The business has a 50-day simple moving average of $21.36 and a 200 day simple moving average of $22.55. The company has a current ratio of 1.43, a quick ratio of 0.56 and a debt-to-equity ratio of 1.68.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its quarterly earnings results 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 net margin of 6.18% and a return on equity of 21.13%. The firm had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.13 billion. Graphic Packaging has set its FY 2025 guidance at 1.900-2.20 EPS. On average, analysts forecast that Graphic Packaging Holding Company will post 2.47 earnings per share for the current year.

Graphic Packaging Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 8th. Investors of record on Monday, September 15th will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.44 annualized dividend and a yield of 2.3%. Graphic Packaging's dividend payout ratio (DPR) is currently 24.86%.

Insider Activity at Graphic Packaging

In related news, EVP Joseph P. Yost sold 30,000 shares of the stock in a transaction on Monday, August 25th. The shares were sold at an average price of $22.72, for a total transaction of $681,600.00. Following the transaction, the executive vice president directly owned 255,203 shares of the company's stock, valued at $5,798,212.16. This represents a 10.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Philip R. Martens sold 56,737 shares of Graphic Packaging stock in a transaction on Friday, August 1st. The shares were sold at an average price of $21.84, for a total transaction of $1,239,136.08. Following the completion of the sale, the director directly owned 33,826 shares of the company's stock, valued at approximately $738,759.84. This trade represents a 62.65% 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 worth $2,073,663. Insiders own 1.41% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd acquired a new stake in Graphic Packaging in the first quarter valued at approximately $28,000. Brooklyn Investment Group raised its holdings in shares of Graphic Packaging by 69.9% in the 1st quarter. Brooklyn Investment Group now owns 1,065 shares of the industrial products company's stock worth $28,000 after acquiring an additional 438 shares during the last quarter. Bessemer Group Inc. lifted its position in Graphic Packaging by 130.7% in the 2nd quarter. Bessemer Group Inc. now owns 1,382 shares of the industrial products company's stock valued at $29,000 after acquiring an additional 783 shares in the last quarter. Hantz Financial Services Inc. boosted its stake in Graphic Packaging by 1,356.1% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,791 shares of the industrial products company's stock valued at $38,000 after purchasing an additional 1,668 shares during the last quarter. Finally, Wayfinding Financial LLC bought a new stake in Graphic Packaging during the 1st quarter worth approximately $42,000. Institutional investors own 99.67% of the company's stock.

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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