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

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $20.86 and last traded at $20.97, with a volume of 99563 shares changing hands. The stock had previously closed at $21.02.

Wall Street Analyst Weigh In

Several brokerages have weighed in on GPK. BNP Paribas Exane downgraded Graphic Packaging from an "outperform" rating to a "neutral" rating in a research report on Wednesday, June 25th. Truist Financial dropped their target price on Graphic Packaging from $30.00 to $28.00 and set a "hold" rating on the stock in a report on Tuesday, April 22nd. Royal Bank Of Canada reduced their price target on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating for the company in a research report on Wednesday, June 18th. UBS Group assumed coverage on Graphic Packaging in a research report on Wednesday, June 4th. They issued a "neutral" rating and a $24.00 price objective on the stock. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $26.00 target price (down from $30.00) on shares of Graphic Packaging in a report on Friday, May 2nd. Six research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $28.40.

Graphic Packaging Stock Performance

The company has a market capitalization of $6.32 billion, a price-to-earnings ratio of 10.22, a price-to-earnings-growth ratio of 3.74 and a beta of 0.74. The firm has a fifty day simple moving average of $22.64 and a 200 day simple moving average of $25.20. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.88 and a quick ratio of 0.73.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The industrial products company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.05). The company had revenue of $2.12 billion during the quarter, compared to analyst estimates of $2.14 billion. Graphic Packaging had a net margin of 7.15% and a return on equity of 23.68%. Graphic Packaging's revenue was down 6.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.66 EPS. On average, analysts anticipate that Graphic Packaging Holding Company will post 2.47 earnings per share for the current fiscal year.

Graphic Packaging Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Saturday, July 5th. Investors of record on Sunday, June 15th will be paid a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 2.10%. The ex-dividend date is Friday, June 13th. Graphic Packaging's dividend payout ratio is presently 21.46%.

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

Hedge Funds Weigh In On Graphic Packaging

Hedge funds have recently made changes to their positions in the company. Picton Mahoney Asset Management increased its position in shares of Graphic Packaging by 55.4% during the fourth quarter. Picton Mahoney Asset Management now owns 1,105 shares of the industrial products company's stock worth $30,000 after purchasing an additional 394 shares in the last quarter. Concurrent Investment Advisors LLC boosted its stake in Graphic Packaging by 3.6% during the 1st quarter. Concurrent Investment Advisors LLC now owns 11,535 shares of the industrial products company's stock worth $299,000 after purchasing an additional 402 shares during the last quarter. 1620 Investment Advisors Inc. grew its holdings in shares of Graphic Packaging by 3.8% during the fourth quarter. 1620 Investment Advisors Inc. now owns 11,163 shares of the industrial products company's stock worth $303,000 after buying an additional 413 shares in the last quarter. Brooklyn Investment Group grew its holdings in shares of Graphic Packaging by 69.9% during the first quarter. Brooklyn Investment Group now owns 1,065 shares of the industrial products company's stock worth $28,000 after buying an additional 438 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC raised its position in shares of Graphic Packaging by 4.1% in the first quarter. Elevation Point Wealth Partners LLC now owns 11,770 shares of the industrial products company's stock valued at $306,000 after buying an additional 465 shares during the last quarter. Institutional investors and hedge funds own 99.67% of the company's stock.

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.

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