Graphic Packaging Sees Unusually High Options Volume (NYSE:GPK)

Key Points

• Graphic Packaging saw unusually high options activity: Investors purchased 28,164 call options, up 3,567% from the typical daily volume of 768. The stock rose 2.3% to $11.62.
• The company reported quarterly EPS of $0.14, beating estimates by $0.02, while revenue declined 0.7% year over year. It also declared a quarterly dividend of $0.11 per share, representing a 3.8% annualized yield.
• Analyst sentiment remains cautious, with nine “Hold” and three “Sell” ratings and an average target price of $11.03. Institutional investors own 99.67% of the stock, while a company director recently purchased about $200,000 worth of shares.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) saw some unusual options trading activity on Tuesday. Stock investors purchased 28,164 call options on the stock. This is an increase of 3,567% compared to the typical daily volume of 768 call options.

Graphic Packaging Stock Up 2.3%

Shares of GPK stock traded up $0.27 during trading hours on Tuesday, reaching $11.62. 1,266,853 shares of the company's stock were exchanged, compared to its average volume of 6,724,410. Graphic Packaging has a 1 year low of $8.78 and a 1 year high of $23.47. The company has a current ratio of 1.41, a quick ratio of 0.59 and a debt-to-equity ratio of 1.60. The stock has a market cap of $3.44 billion, a PE ratio of 12.63 and a beta of 0.66. The stock's fifty day moving average price is $10.77 and its two-hundred day moving average price is $11.09.

Graphic Packaging (NYSE:GPK - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $0.14 EPS for the quarter, beating the consensus estimate of $0.12 by $0.02. Graphic Packaging had a net margin of 3.17% and a return on equity of 12.62%. The firm's revenue was down .7% on a year-over-year basis. During the same period last year, the company posted $0.42 earnings per share. Graphic Packaging has set its FY 2026 guidance at 0.650-0.900 EPS. Research analysts predict that Graphic Packaging will post 0.75 EPS for the current year.

Graphic Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Tuesday, September 15th. Graphic Packaging's payout ratio is presently 47.83%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. JPMorgan Chase & Co. started coverage on Graphic Packaging in a research report on Monday, June 29th. They issued a "neutral" rating and a $11.70 price target for the company. Robert W. Baird set a $13.00 target price on Graphic Packaging in a research note on Wednesday, May 6th. Wells Fargo & Company boosted their target price on shares of Graphic Packaging from $8.00 to $9.00 and gave the stock an "underweight" rating in a report on Wednesday, July 15th. UBS Group raised their price target on shares of Graphic Packaging from $10.00 to $12.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Finally, Zacks Research raised shares of Graphic Packaging from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. Nine investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, Graphic Packaging has an average rating of "Reduce" and an average target price of $11.03.

Insider Buying and Selling

In related news, Director Jeffrey Stafeil bought 17,878 shares of the stock in a transaction on Thursday, May 7th. The stock was bought at an average price of $11.19 per share, for a total transaction of $200,054.82. Following the completion of the acquisition, the director directly owned 17,878 shares in the company, valued at approximately $200,054.82. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Graphic Packaging

Several hedge funds have recently made changes to their positions in GPK. AQR Capital Management LLC increased its holdings in shares of Graphic Packaging by 36.6% in the first quarter. AQR Capital Management LLC now owns 171,608 shares of the industrial products company's stock valued at $4,453,000 after purchasing an additional 45,944 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Graphic Packaging by 9.9% during the first quarter. Goldman Sachs Group Inc. now owns 1,471,519 shares of the industrial products company's stock worth $38,201,000 after purchasing an additional 132,692 shares during the period. Hsbc Holdings PLC boosted its position in Graphic Packaging by 5.4% in the second quarter. Hsbc Holdings PLC now owns 15,485 shares of the industrial products company's stock valued at $326,000 after buying an additional 791 shares during the last quarter. Invesco Ltd. increased its holdings in Graphic Packaging by 28.8% in the 2nd quarter. Invesco Ltd. now owns 2,130,941 shares of the industrial products company's stock worth $44,899,000 after buying an additional 477,085 shares during the period. Finally, First Trust Advisors LP raised its position in Graphic Packaging by 3.6% during the 2nd quarter. First Trust Advisors LP now owns 1,002,964 shares of the industrial products company's stock worth $21,133,000 after buying an additional 34,790 shares during the last quarter. 99.67% of the stock is owned by institutional investors and hedge funds.

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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