Graphic Packaging (NYSE:GPK) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Graphic Packaging gapped up after beating expectations — Q results showed $0.09 EPS vs. $0.06 expected and $2.16B revenue vs. $2.05B expected, and the company set FY2026 guidance of 0.75–1.15 EPS.
• The board paid a quarterly dividend of $0.11 (annualized $0.44) for a 4.2% yield
• Several brokerages have cut ratings and targets recently, leaving a MarketBeat consensus rating of "Reduce" with a $12.20 consensus price target.

Shares of Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $9.56, but opened at $10.87. Graphic Packaging shares last traded at $10.1040, with a volume of 1,621,944 shares trading hands.

The industrial products company reported $0.09 EPS for the quarter, topping analysts' consensus estimates of $0.06 by $0.03. Graphic Packaging had a net margin of 5.15% and a return on equity of 16.58%. The firm had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same quarter in the prior year, the firm earned $0.51 EPS. The company's revenue was up 1.7% on a year-over-year basis. Graphic Packaging has set its FY 2026 guidance at 0.750-1.150 EPS.

Graphic Packaging Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Sunday, March 15th were issued a dividend of $0.11 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.44 dividend on an annualized basis and a yield of 4.2%. Graphic Packaging's dividend payout ratio is currently 29.73%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on GPK. Wells Fargo & Company decreased their price objective on shares of Graphic Packaging from $9.00 to $8.00 and set an "underweight" rating on the stock in a report on Tuesday, April 14th. Citigroup reduced their target price on shares of Graphic Packaging from $13.00 to $10.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. Raymond James Financial lowered shares of Graphic Packaging from a "market perform" rating to an "underperform" rating in a research note on Tuesday, April 21st. UBS Group reduced their target price on shares of Graphic Packaging from $13.00 to $10.00 and set a "neutral" rating on the stock in a research note on Friday, April 10th. Finally, Truist Financial reduced their target price on shares of Graphic Packaging from $14.00 to $11.00 and set a "hold" rating on the stock in a research note on Wednesday, April 15th. Eight equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, Graphic Packaging currently has a consensus rating of "Reduce" and a consensus price target of $12.20.

Insider Activity

In other Graphic Packaging news, CEO Robbert Rietbroek bought 44,278 shares of Graphic Packaging stock in a transaction dated Wednesday, March 4th. The shares were bought at an average price of $11.32 per share, with a total value of $501,226.96. Following the purchase, the chief executive officer owned 44,278 shares of the company's stock, valued at $501,226.96. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Company insiders own 1.41% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. NewEdge Advisors LLC boosted its stake in Graphic Packaging by 3.0% during the 2nd quarter. NewEdge Advisors LLC now owns 18,379 shares of the industrial products company's stock worth $387,000 after acquiring an additional 539 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in Graphic Packaging by 17.1% during the 4th quarter. Farther Finance Advisors LLC now owns 4,450 shares of the industrial products company's stock worth $67,000 after acquiring an additional 651 shares during the last quarter. Thrivent Financial for Lutherans boosted its stake in Graphic Packaging by 0.9% during the 2nd quarter. Thrivent Financial for Lutherans now owns 71,049 shares of the industrial products company's stock worth $1,497,000 after acquiring an additional 660 shares during the last quarter. Oppenheimer & Co. Inc. boosted its stake in Graphic Packaging by 1.1% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 65,067 shares of the industrial products company's stock worth $1,273,000 after acquiring an additional 711 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its stake in Graphic Packaging by 5.4% during the 2nd quarter. Hsbc Holdings PLC now owns 15,485 shares of the industrial products company's stock worth $326,000 after acquiring an additional 791 shares during the last quarter. Institutional investors own 99.67% of the company's stock.

Graphic Packaging Stock Up 9.7%

The firm's 50 day moving average is $10.11 and its two-hundred day moving average is $13.52. The firm has a market cap of $3.10 billion, a P/E ratio of 7.01 and a beta of 0.61. The company has a current ratio of 1.30, a quick ratio of 0.52 and a debt-to-equity ratio of 1.50.

About Graphic Packaging

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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