Investors Purchase Large Volume of Call Options on Graphic Packaging (NYSE:GPK)

Key Points

• 28,248 call options were purchased on GPK—about a 2,864% increase versus the average daily call volume—indicating unusually large bullish options activity.
• CEO Robbert Rietbroek bought 44,278 shares at $11.32 (≈$501,227), boosting his stake and signaling insider buying interest.
• Several analysts have cut price targets and ratings (Wells Fargo, UBS, Citi among them), leaving a MarketBeat consensus of "Reduce" with a $13.73 target price.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) saw unusually large options trading on Monday. Stock investors purchased 28,248 call options on the company. This represents an increase of 2,864% compared to the average daily volume of 953 call options.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Wells Fargo & Company decreased their target price on Graphic Packaging from $9.00 to $8.00 and set an "underweight" rating for the company in a research report on Tuesday, April 14th. UBS Group decreased their target price on Graphic Packaging from $13.00 to $10.00 and set a "neutral" rating for the company in a research report on Friday, April 10th. Citigroup cut their price target on Graphic Packaging from $13.00 to $10.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. Zacks Research lowered Graphic Packaging from a "hold" rating to a "strong sell" rating in a research note on Wednesday, January 14th. Finally, Robert W. Baird set a $15.00 price target on Graphic Packaging in a research note on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $13.73.

Insider Transactions at Graphic Packaging

In related news, CEO Robbert Rietbroek purchased 44,278 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was bought at an average cost of $11.32 per share, for a total transaction of $501,226.96. Following the completion of the transaction, the chief executive officer directly owned 44,278 shares in the company, valued at $501,226.96. This 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. 1.41% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Graphic Packaging

Several institutional investors have recently added to or reduced their stakes in GPK. Quarry LP lifted its holdings in shares of 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 purchasing an additional 1,142 shares during the period. Marshall & Sterling Wealth Advisors Inc. acquired a new stake in shares of Graphic Packaging during the third quarter worth about $31,000. Caitong International Asset Management Co. Ltd lifted its holdings in Graphic Packaging by 13,971.4% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,970 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 1,956 shares during the period. MassMutual Private Wealth & Trust FSB lifted its holdings in Graphic Packaging by 649.6% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 2,039 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 1,767 shares during the period. Finally, Global Retirement Partners LLC lifted its holdings in Graphic Packaging by 65.2% in the third quarter. Global Retirement Partners LLC now owns 2,291 shares of the industrial products company's stock valued at $45,000 after acquiring an additional 904 shares during the period. Institutional investors and hedge funds own 99.67% of the company's stock.

Graphic Packaging Stock Up 2.6%

GPK traded up $0.25 on Monday, hitting $9.60. The company had a trading volume of 2,115,260 shares, compared to its average volume of 6,914,047. The stock has a fifty day moving average price of $10.36 and a 200-day moving average price of $13.75. Graphic Packaging has a 12-month low of $8.78 and a 12-month high of $25.81. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.52 and a current ratio of 1.30. The stock has a market capitalization of $2.84 billion, a price-to-earnings ratio of 6.46 and a beta of 0.69.

Graphic Packaging (NYSE:GPK - Get Free Report) last posted its earnings results on Monday, March 2nd. The industrial products company reported $0.24 earnings per share (EPS) for the quarter. The company had revenue of $2.10 billion for the quarter. Graphic Packaging had a return on equity of 16.58% and a net margin of 5.15%. Analysts predict that Graphic Packaging will post 0.84 EPS for the current fiscal year.

Graphic Packaging Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Sunday, March 15th were issued a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend was Friday, March 13th. Graphic Packaging's dividend payout ratio (DPR) is currently 29.73%.

Graphic Packaging Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.