Graphic Packaging (NYSE:GPK) Price Target Cut to $10.00 by Analysts at Citigroup

Key Points

• Citigroup cut its price target on Graphic Packaging from $13.00 to $10.00 and maintained a "neutral" rating, implying roughly a 4.1% upside from the current share price.
• Analyst sentiment is tilted negative: nine analysts rate GPK as Hold and three as Sell, with an average analyst rating of "Reduce" and an average target price of $14.07 after several recent downgrades.
• Insider activity: CEO Robbert Rietbroek purchased 44,278 shares at $11.32 (~$501K); insiders own 1.41% of the company while institutional investors hold about 99.67%.

Graphic Packaging (NYSE:GPK - Get Free Report) had its target price cut by equities researchers at Citigroup from $13.00 to $10.00 in a research note issued on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the industrial products company's stock. Citigroup's price objective suggests a potential upside of 4.11% from the stock's current price.

Several other equities research analysts have also recently issued reports on GPK. Deutsche Bank Aktiengesellschaft began coverage on Graphic Packaging in a report on Wednesday, April 1st. They issued a "hold" rating and a $9.60 target price on the stock. Truist Financial set a $14.00 target price on Graphic Packaging in a report on Wednesday, February 4th. Royal Bank Of Canada reduced their target price on Graphic Packaging from $13.00 to $10.00 and set a "sector perform" rating on the stock in a report on Friday, March 20th. Robert W. Baird set a $15.00 target price on Graphic Packaging in a report on Wednesday, February 4th. Finally, Zacks Research cut Graphic Packaging from a "hold" rating to a "strong sell" rating in a report on Wednesday, January 14th. Nine investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $14.07.

Graphic Packaging Stock Performance

Graphic Packaging stock traded down $0.20 during trading on Tuesday, reaching $9.61. The company had a trading volume of 1,663,327 shares, compared to its average volume of 7,030,410. Graphic Packaging has a 52 week low of $8.78 and a 52 week high of $25.81. The firm's 50-day simple moving average is $10.95 and its 200 day simple moving average is $14.36. The firm has a market capitalization of $2.84 billion, a price-to-earnings ratio of 6.52 and a beta of 0.69. 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 announced its earnings results on Monday, March 2nd. The industrial products company reported $0.24 EPS for the quarter. The company had revenue of $2.10 billion for the quarter. Graphic Packaging had a return on equity of 16.58% and a net margin of 5.15%. Sell-side analysts forecast that Graphic Packaging will post 2.47 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Robbert Rietbroek purchased 44,278 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was purchased at an average price of $11.32 per share, for a total transaction of $501,226.96. Following the completion of the acquisition, the chief executive officer owned 44,278 shares of the company's stock, valued at approximately $501,226.96. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 1.41% of the company's stock.

Institutional Trading of Graphic Packaging

Large investors have recently modified their holdings of the company. Eminence Capital LP boosted its holdings in shares of Graphic Packaging by 164.6% in the third quarter. Eminence Capital LP now owns 7,648,135 shares of the industrial products company's stock valued at $149,674,000 after purchasing an additional 4,758,098 shares during the period. Causeway Capital Management LLC boosted its holdings in shares of Graphic Packaging by 251.3% in the third quarter. Causeway Capital Management LLC now owns 2,601,576 shares of the industrial products company's stock valued at $50,913,000 after purchasing an additional 1,861,097 shares during the period. Allspring Global Investments Holdings LLC boosted its holdings in shares of Graphic Packaging by 8.5% in the third quarter. Allspring Global Investments Holdings LLC now owns 19,138,977 shares of the industrial products company's stock valued at $374,550,000 after purchasing an additional 1,502,681 shares during the period. SG Americas Securities LLC boosted its holdings in shares of Graphic Packaging by 673.5% in the fourth quarter. SG Americas Securities LLC now owns 165,245 shares of the industrial products company's stock valued at $2,489,000 after purchasing an additional 143,882 shares during the period. Finally, Royce & Associates LP boosted its holdings in shares of Graphic Packaging by 15.6% in the third quarter. Royce & Associates LP now owns 1,244,210 shares of the industrial products company's stock valued at $24,349,000 after purchasing an additional 167,623 shares during the period. Hedge funds and other institutional investors own 99.67% of the company's stock.

Graphic Packaging Company Profile

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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