Graphic Packaging (NYSE:GPK) Upgraded to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Graphic Packaging from “strong sell” to “hold,” while several other analysts also maintain cautious views on the stock. Overall, the name now carries a consensus rating of “Reduce” with an average price target of $12.33.
• The company recently beat quarterly earnings and revenue estimates, reporting EPS of $0.09 versus $0.06 expected and revenue of $2.16 billion versus $2.05 billion expected. However, profits were still well below last year’s level, and guidance remains modest.
• Investor sentiment is being affected by legal overhang, with a new class-action filing and repeated investor alerts potentially creating added distraction and headline risk for GPK shares.

Graphic Packaging (NYSE:GPK - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities analysts also recently 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. Royal Bank Of Canada reduced their target price on shares of Graphic Packaging from $13.00 to $10.00 and set a "sector perform" rating for the company in a research report on Friday, March 20th. Truist Financial reduced their target price on shares of Graphic Packaging from $14.00 to $11.00 and set a "hold" rating for the company in a research report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft started coverage on shares of Graphic Packaging in a research report on Wednesday, April 1st. They issued a "hold" rating and a $9.60 target price for the company. Finally, UBS Group boosted their target price on shares of Graphic Packaging from $10.00 to $12.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Nine investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $12.33.

Graphic Packaging Price Performance

NYSE:GPK opened at $10.77 on Monday. Graphic Packaging has a one year low of $8.78 and a one year high of $23.76. The company has a market cap of $3.19 billion, a P/E ratio of 11.70 and a beta of 0.66. The firm's fifty day moving average price is $9.88 and its two-hundred day moving average price is $12.61. The company has a debt-to-equity ratio of 1.60, a current ratio of 1.41 and a quick ratio of 0.59.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.06 by $0.03. Graphic Packaging had a net margin of 3.17% and a return on equity of 12.62%. The firm had revenue of $2.16 billion for the quarter, compared to the consensus estimate of $2.05 billion. During the same period in the previous year, the company earned $0.51 earnings per share. The company's quarterly 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. Equities analysts expect that Graphic Packaging will post 0.85 earnings per share for the current year.

Insider Transactions at Graphic Packaging

In other news, Director Jeffrey Stafeil acquired 17,878 shares of Graphic Packaging stock in a transaction on Thursday, May 7th. The shares were purchased at an average cost of $11.19 per share, for a total transaction of $200,054.82. Following the completion of the purchase, the director directly owned 17,878 shares of the company's stock, valued at approximately $200,054.82. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 1.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Graphic Packaging

Large investors have recently bought and sold shares of the company. Quarry LP grew its stake in Graphic Packaging by 282.0% during the third quarter. Quarry LP now owns 1,547 shares of the industrial products company's stock worth $30,000 after buying an additional 1,142 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its stake in Graphic Packaging by 13,971.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,970 shares of the industrial products company's stock worth $30,000 after buying an additional 1,956 shares in the last quarter. Marshall & Sterling Wealth Advisors Inc. acquired a new stake in Graphic Packaging during the third quarter worth about $31,000. MassMutual Private Wealth & Trust FSB grew its stake in Graphic Packaging by 649.6% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 2,039 shares of the industrial products company's stock worth $31,000 after buying an additional 1,767 shares in the last quarter. Finally, Physician Wealth Advisors Inc. grew its stake in Graphic Packaging by 2,321.1% during the first quarter. Physician Wealth Advisors Inc. now owns 3,220 shares of the industrial products company's stock worth $32,000 after buying an additional 3,087 shares in the last quarter. 99.67% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Graphic Packaging

Here are the key news stories impacting Graphic Packaging this week:

• Positive Sentiment: One market note said Graphic Packaging “shines” in a review of industrial packaging Q1 earnings, suggesting its operating performance still stands out versus peers. Industrial packaging stocks Q1 earnings review: Graphic Packaging Holding NYSE: GPK shines
• Positive Sentiment: UBS said Graphic Packaging appears largely insulated from the Nippon mill accident, which could limit any near-term supply-chain or cost impact. Graphic Packaging seen largely insulated from Nippon Mill accident, UBS says
• Neutral Sentiment: Multiple law firms are encouraging investors to join or monitor the securities class action, but these notices largely repeat the same litigation update and deadline rather than adding new facts. Pomerantz Law Firm Announces the Filing of a Class Action Against Graphic Packaging Holding Company and Certain Former Officers – GPK
• Neutral Sentiment: The company’s own earnings backdrop remains mixed but not alarming: last reported EPS and revenue beat estimates, even though profit fell sharply year over year and guidance remains modest.
• Negative Sentiment: The new class-action filing and repeated investor alerts raise the risk of legal costs, management distraction, and potential headline overhang for GPK shares. Pomerantz Law Firm Announces the Filing of a Class Action Against Graphic Packaging Holding Company and Certain Former Officers – GPK

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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