Graphic Packaging (NYSE:GPK) Hits New 1-Year Low - Should You Sell?

Key Points

• Graphic Packaging's shares recently hit a new 52-week low at $20.15, closing at $20.18 with significant trading volume of over 2.8 million shares.
• Analyst ratings vary, with a consensus rating of Hold and a target price averaging $26.38, while recent downgrades have lowered price targets from $26.00 to $25.00 and from $24.00 to $23.00.
• The company announced a quarterly dividend of $0.11 per share, equating to a 2.2% yield, with payments scheduled for October 8th.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $20.15 and last traded at $20.18, with a volume of 2818424 shares traded. The stock had previously closed at $20.72.

Wall Street Analyst Weigh In

GPK has been the subject of several recent research reports. BNP Paribas Exane lowered shares of Graphic Packaging from an "outperform" rating to a "neutral" rating in a research note on Wednesday, June 25th. Wells Fargo & Company cut their target price on shares of Graphic Packaging from $23.00 to $20.00 and set an "equal weight" rating for the company in a research note on Wednesday. Royal Bank Of Canada dropped their price objective on shares of Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating for the company in a research note on Wednesday, June 18th. UBS Group assumed coverage on Graphic Packaging in a report on Wednesday, June 4th. They issued a "neutral" rating and a $24.00 price target for the company. Finally, Truist Financial dropped their price target 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. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $26.00.

Graphic Packaging Stock Down 2.2%

The stock has a 50 day moving average price of $22.03 and a 200-day moving average price of $23.10. The stock has a market capitalization of $5.78 billion, a P/E ratio of 11.02, a PEG ratio of 6.78 and a beta of 0.75. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.43 and a quick ratio of 0.56.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its earnings results on Tuesday, July 29th. The industrial products company reported $0.42 earnings per share (EPS) for the quarter, beating 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. As a group, research analysts expect that Graphic Packaging Holding Company will post 2.47 EPS for the current fiscal year.

Graphic Packaging Dividend Announcement

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

Insider Activity

In other news, Director Philip R. Martens sold 7,015 shares of the business's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $21.80, for a total value of $152,927.00. Following the sale, the director directly owned 26,811 shares of the company's stock, valued at approximately $584,479.80. The trade was a 20.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Joseph P. Yost sold 30,000 shares of the company's 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 completion of the transaction, the executive vice president owned 255,203 shares of the company's stock, valued at approximately $5,798,212.16. The trade was a 10.52% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 93,752 shares of company stock worth $2,073,663. 1.41% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Graphic Packaging

Several hedge funds have recently modified their holdings of the stock. D. E. Shaw & Co. Inc. acquired a new position in Graphic Packaging in the fourth quarter worth $229,000. Millennium Management LLC grew its position in shares of Graphic Packaging by 106.5% in the 4th quarter. Millennium Management LLC now owns 105,601 shares of the industrial products company's stock valued at $2,868,000 after purchasing an additional 54,466 shares during the period. ProShare Advisors LLC increased its holdings in shares of Graphic Packaging by 7.3% during the 4th quarter. ProShare Advisors LLC now owns 14,043 shares of the industrial products company's stock worth $381,000 after acquiring an additional 960 shares during the last quarter. Royal Bank of Canada grew its holdings in shares of Graphic Packaging by 8.3% during the 4th quarter. Royal Bank of Canada now owns 539,797 shares of the industrial products company's stock worth $14,661,000 after purchasing an additional 41,450 shares in the last quarter. Finally, Snowden Capital Advisors LLC raised its position in shares of Graphic Packaging by 33.1% during the fourth quarter. Snowden Capital Advisors LLC now owns 10,972 shares of the industrial products company's stock worth $298,000 after acquiring an additional 2,728 shares during 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.