Graphic Packaging (NYSE:GPK) Reaches New 12-Month Low - Here's What Happened

Key Points

• Graphic Packaging Holding Company’s shares hit a new 52-week low, trading at $20.53, and currently has a consensus rating of "Hold" with a price target of $26.38.
• The company reported Q2 earnings of $0.42 per share, exceeding estimates, with a revenue of $2.20 billion, and has set FY 2025 guidance between $1.90-$2.20 EPS.
• Graphic Packaging declared a quarterly dividend of $0.11 per share, resulting in an annualized dividend yield of 2.1%, 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 mid-day trading on Wednesday . The stock traded as low as $20.53 and last traded at $20.55, with a volume of 3080014 shares changing hands. The stock had previously closed at $21.07.

Analysts Set New Price Targets

Several research firms have weighed in on GPK. 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 note on Friday, July 11th. Bank of America dropped their price target on Graphic Packaging from $31.00 to $28.00 and set a "buy" rating on the stock in a research report on Wednesday, July 9th. Royal Bank Of Canada dropped their price target on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating on the stock in a research report on Wednesday, June 18th. 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 raised their price target on Graphic Packaging from $21.00 to $23.00 and gave the stock an "equal weight" rating in a research report on Friday, July 18th. Four research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $26.38.

Graphic Packaging Price Performance

The stock has a market cap of $6.07 billion, a price-to-earnings ratio of 11.58, a price-to-earnings-growth ratio of 7.04 and a beta of 0.75. The company has a 50-day simple moving average of $22.25 and a two-hundred day simple moving average of $23.27. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.56 and a current ratio of 1.43.

Graphic Packaging (NYSE:GPK - Get Free Report) last issued its earnings results on Tuesday, July 29th. The industrial products company reported $0.42 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 during the quarter, compared to the consensus estimate of $2.13 billion. Graphic Packaging has set its FY 2025 guidance at 1.900-2.20 EPS. As a group, equities research analysts forecast that Graphic Packaging Holding Company will post 2.47 EPS for the current year.

Graphic Packaging Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 8th. Stockholders of record on Monday, September 15th will be paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Monday, September 15th. Graphic Packaging's payout ratio is currently 24.86%.

Insider Activity at Graphic Packaging

In related news, EVP Joseph P. Yost sold 30,000 shares of the business's stock in a transaction on 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 directly owned 255,203 shares in the company, valued at $5,798,212.16. The trade was a 10.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Philip R. Martens sold 56,737 shares of the business's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $21.84, for a total value of $1,239,136.08. Following the completion of the sale, the director owned 33,826 shares of the company's stock, valued at $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. Insiders have sold a total of 93,752 shares of company stock valued at $2,073,663 over the last quarter. 1.41% of the stock is currently owned by corporate insiders.

Institutional Trading of Graphic Packaging

Several institutional investors have recently added to or reduced their stakes in GPK. Victory Capital Management Inc. raised its holdings in shares of Graphic Packaging by 1,004.9% during the 1st quarter. Victory Capital Management Inc. now owns 9,240,697 shares of the industrial products company's stock worth $239,888,000 after buying an additional 8,404,340 shares in the last quarter. American Century Companies Inc. raised its holdings in shares of Graphic Packaging by 19.1% during the 2nd quarter. American Century Companies Inc. now owns 22,022,347 shares of the industrial products company's stock worth $464,011,000 after buying an additional 3,533,846 shares in the last quarter. Norges Bank acquired a new position in shares of Graphic Packaging during the 2nd quarter worth $55,632,000. Epoch Investment Partners Inc. increased its holdings in Graphic Packaging by 11,000.0% in the 1st quarter. Epoch Investment Partners Inc. now owns 1,299,806 shares of the industrial products company's stock worth $33,743,000 after purchasing an additional 1,288,096 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased 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 worth $385,353,000 after purchasing an additional 1,264,922 shares in the last quarter. 99.67% of the stock is currently owned by institutional investors.

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.