Graphic Packaging (NYSE:GPK) Reaches New 52-Week Low - Here's Why

Graphic Packaging Holding (NYSE:GPK - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $24.89 and last traded at $25.30, with a volume of 2443897 shares changing hands. The stock had previously closed at $25.64.

Wall Street Analysts Forecast Growth

GPK has been the subject of several analyst reports. Citigroup reiterated a "neutral" rating and issued a $30.00 target price (down from $33.00) on shares of Graphic Packaging in a research note on Monday, January 6th. Robert W. Baird reduced their target price on Graphic Packaging from $36.00 to $32.00 and set an "outperform" rating for the company in a research note on Wednesday, February 5th. Royal Bank of Canada reduced their price objective on shares of Graphic Packaging from $32.00 to $26.00 and set an "outperform" rating for the company in a research report on Friday. Raymond James reiterated an "outperform" rating and issued a $26.00 target price (down previously from $30.00) on shares of Graphic Packaging in a research report on Friday. Finally, Wells Fargo & Company upgraded shares of Graphic Packaging from an "underweight" rating to an "equal weight" rating and upped their price target for the stock from $24.00 to $27.00 in a research report on Monday, January 6th. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $29.17.

Graphic Packaging Price Performance

The stock's 50-day moving average price is $25.45 and its 200 day moving average price is $27.20. The company has a quick ratio of 0.54, a current ratio of 1.46 and a debt-to-equity ratio of 1.71. The firm has a market capitalization of $6.59 billion, a price-to-earnings ratio of 10.11, a PEG ratio of 2.10 and a beta of 0.81.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its quarterly earnings data on Thursday, May 1st. The industrial products company reported $0.51 EPS for the quarter, missing analysts' consensus estimates of $0.56 by ($0.05). The business had revenue of $2.12 billion during the quarter, compared to analyst estimates of $2.14 billion. Graphic Packaging had a net margin of 7.47% and a return on equity of 25.96%. The firm's revenue was down 6.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.66 EPS. Equities research analysts expect that Graphic Packaging Holding will post 2.47 earnings per share for the current fiscal year.

Graphic Packaging Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Saturday, April 5th. Shareholders of record on Saturday, March 15th were paid a dividend of $0.11 per share. The ex-dividend date of this dividend was Friday, March 14th. This represents a $0.44 dividend on an annualized basis and a yield of 2.01%. This is a positive change from Graphic Packaging's previous quarterly dividend of $0.10. Graphic Packaging's payout ratio is 20.37%.

Graphic Packaging declared that its board has approved a stock repurchase program on Thursday, May 1st that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 23.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Graphic Packaging

A number of hedge funds have recently modified their holdings of GPK. Synergy Asset Management LLC boosted its holdings in Graphic Packaging by 108.6% in the 4th quarter. Synergy Asset Management LLC now owns 64,343 shares of the industrial products company's stock valued at $1,810,000 after purchasing an additional 33,493 shares during the last quarter. Howard Capital Management Group LLC lifted its holdings in Graphic Packaging by 1.3% in the fourth quarter. Howard Capital Management Group LLC now owns 1,021,143 shares of the industrial products company's stock valued at $27,734,000 after acquiring an additional 13,175 shares during the last quarter. JPMorgan Chase & Co. grew its position in Graphic Packaging by 8.0% in the third quarter. JPMorgan Chase & Co. now owns 10,610,233 shares of the industrial products company's stock worth $313,957,000 after acquiring an additional 787,266 shares during the period. Wells Fargo & Company MN increased its stake in Graphic Packaging by 0.3% during the fourth quarter. Wells Fargo & Company MN now owns 194,467 shares of the industrial products company's stock worth $5,282,000 after acquiring an additional 608 shares during the last quarter. Finally, Hennessy Advisors Inc. purchased a new stake in Graphic Packaging in the fourth quarter valued at $51,642,000. Hedge funds and other institutional investors own 99.67% of the company's stock.

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.