Graphic Packaging (NYSE:GPK) Reaches New 12-Month Low - Should You Sell?

Key Points

• Graphic Packaging shares fell to a new 52-week low of $8.78, below their 50-day and 200-day moving averages. MarketBeat’s analyst consensus is “Reduce,” with an average price target of $11.23.
• The company exceeded quarterly earnings expectations with $0.14 EPS versus $0.12 forecast and $2.19 billion in revenue, but revenue declined 0.7% year over year and earnings fell from $0.42 per share in the prior-year period.
• Graphic Packaging maintains a quarterly dividend of $0.11 per share, equivalent to a 4.9% annual yield, while institutional investors own 99.67% of the stock.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report) reached a new 52-week low during mid-day trading on Friday. The company traded as low as $8.78 and last traded at $8.8950, with a volume of 2273926 shares changing hands. The stock had previously closed at $8.96.

Wall Street Analyst Weigh In

GPK has been the topic of several recent research reports. Wells Fargo & Company raised their target price on shares of Graphic Packaging from $9.00 to $10.00 and gave the stock an "underweight" rating in a report on Wednesday, August 5th. Royal Bank Of Canada reduced their price target on Graphic Packaging from $11.00 to $10.00 and set a "sector perform" rating on the stock in a research report on Wednesday. Weiss Ratings restated a "sell (d+)" rating on shares of Graphic Packaging in a research note on Monday, September 21st. UBS Group lifted their price objective on Graphic Packaging from $11.00 to $12.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Finally, Bank of America cut their target price on Graphic Packaging from $14.00 to $13.00 and set a "neutral" rating for the company in a research report on Friday, September 11th. One equities research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $11.23.

Graphic Packaging Price Performance

The company's 50-day moving average is $10.67 and its 200-day moving average is $10.36. The firm has a market cap of $2.65 billion, a price-to-earnings ratio of 13.60 and a beta of 0.66. The company has a current ratio of 1.38, a quick ratio of 0.60 and a debt-to-equity ratio of 1.58.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its earnings results on Tuesday, August 4th. The industrial products company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.02. The firm had revenue of $2.19 billion during the quarter, compared to analysts' expectations of $2.18 billion. Graphic Packaging had a return on equity of 9.95% and a net margin of 2.25%.The company's quarterly revenue was down .7% on a year-over-year basis. During the same period in the prior year, the company earned $0.42 earnings per share. Graphic Packaging has set its FY 2026 guidance at 0.650-0.900 EPS. Equities research analysts predict that Graphic Packaging Holding Company will post 0.72 earnings per share for the current year.

Graphic Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Investors of record on Tuesday, September 15th will be given a dividend of $0.11 per share. The ex-dividend date is Tuesday, September 15th. This represents a $0.44 dividend on an annualized basis and a yield of 4.9%. Graphic Packaging's payout ratio is currently 66.67%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. QRG Capital Management Inc. lifted its holdings in Graphic Packaging by 111.0% in the second quarter. QRG Capital Management Inc. now owns 21,570 shares of the industrial products company's stock valued at $228,000 after buying an additional 11,345 shares during the period. Envestnet Portfolio Solutions Inc. raised its position in shares of Graphic Packaging by 46.9% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 65,870 shares of the industrial products company's stock worth $696,000 after acquiring an additional 21,039 shares in the last quarter. Sequoia Financial Advisors LLC lifted its stake in shares of Graphic Packaging by 135.3% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 63,784 shares of the industrial products company's stock valued at $674,000 after purchasing an additional 36,682 shares during the period. Engineers Gate Manager LP boosted its position in shares of Graphic Packaging by 60.9% during the 2nd quarter. Engineers Gate Manager LP now owns 444,472 shares of the industrial products company's stock valued at $4,698,000 after purchasing an additional 168,171 shares in the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC bought a new stake in shares of Graphic Packaging during the 2nd quarter valued at about $145,000. 99.67% of the stock is owned by institutional investors.

Graphic Packaging Company Profile

Graphic Packaging Holding Company NYSE: GPK is a provider of fiber-based packaging solutions for consumer products companies. Through its Graphic Packaging International subsidiary, the company designs and manufactures paperboard cartons, cups, trays and other packaging products used to package food, beverages and household and personal-care products.

The company also supplies packaging machinery and integrated packaging systems, including equipment used to form, fill and seal cartons and cups.

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