Graphic Packaging (NYSE:GPK) Sets 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) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $20.15 and last traded at $20.18, with a volume of 2818424 shares. The stock had previously closed at $20.72.

Analyst Upgrades and Downgrades

GPK has been the subject of a number of research reports. Royal Bank Of Canada decreased their price objective on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating for the company in a report on Wednesday, June 18th. Truist Financial decreased their price objective on Graphic Packaging from $24.00 to $23.00 and set a "hold" rating for the company in a report on Friday, July 11th. UBS Group began coverage on Graphic Packaging in a report on Wednesday, June 4th. They set a "neutral" rating and a $24.00 price target for the company. Wells Fargo & Company raised their price target on Graphic Packaging from $21.00 to $23.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. Finally, BNP Paribas Exane downgraded Graphic Packaging from an "outperform" rating to a "neutral" rating in a report on Wednesday, June 25th. Four investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $26.38.

Graphic Packaging Price Performance

The firm has a market capitalization of $5.98 billion, a PE ratio of 11.40, a PEG ratio of 7.04 and a beta of 0.76. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.43 and a quick ratio of 0.56. The firm has a 50-day simple moving average of $22.22 and a 200-day simple moving average of $23.22.

Graphic Packaging (NYSE:GPK - Get Free Report) last announced its 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 return on equity of 21.13% and a net margin of 6.18%.The business had revenue of $2.20 billion for the quarter, compared to analysts' expectations of $2.13 billion. Graphic Packaging has set its FY 2025 guidance at 1.900-2.20 EPS. As a group, equities analysts forecast that Graphic Packaging Holding Company will post 2.47 earnings per share for the current year.

Graphic Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 8th. Stockholders of record on Monday, September 15th will be given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Monday, September 15th. Graphic Packaging's payout ratio is presently 24.86%.

Insider Transactions at Graphic Packaging

In other news, Director Philip R. Martens sold 56,737 shares of Graphic Packaging stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $21.84, for a total transaction of $1,239,136.08. Following the transaction, the director directly owned 33,826 shares of the company's stock, valued at $738,759.84. The trade was a 62.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Joseph P. Yost sold 30,000 shares of Graphic Packaging stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $22.72, for a total value of $681,600.00. Following the transaction, the executive vice president directly owned 255,203 shares in the company, valued at approximately $5,798,212.16. The trade was a 10.52% decrease in their ownership of the stock. 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. Insiders own 1.41% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in GPK. Caitong International Asset Management Co. Ltd bought a new stake in Graphic Packaging during the 1st quarter valued at approximately $28,000. Brooklyn Investment Group raised its stake in Graphic Packaging by 69.9% during the 1st quarter. Brooklyn Investment Group now owns 1,065 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 438 shares during the period. Bessemer Group Inc. raised its stake in Graphic Packaging by 130.7% during the 2nd quarter. Bessemer Group Inc. now owns 1,382 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 783 shares during the period. Hantz Financial Services Inc. raised 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 period. Finally, Wayfinding Financial LLC bought a new stake in Graphic Packaging during the 1st quarter valued at approximately $42,000. 99.67% of the stock is owned by hedge funds and other 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.

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