Graphic Packaging (NYSE:GPK) Sets New 12-Month Low - Here's Why

Key Points

• Graphic Packaging shares fell to a new 52-week low of $8.30, trading below both their 50-day and 200-day moving averages. The stock has a consensus “Reduce” rating and an average analyst price target of $10.73.
• Analysts have mostly cut their price targets, with UBS lowering its target to $9.50 and Bank of America to $13.00, although JPMorgan upgraded the stock to “overweight.”
• The company slightly exceeded quarterly earnings and revenue expectations but reported year-over-year EPS and revenue declines. Graphic Packaging continues to pay a quarterly dividend of $0.11 per share, equivalent to a 5.3% annualized yield.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report)'s share price hit a new 52-week low during trading on Thursday. The stock traded as low as $8.30 and last traded at $8.2450, with a volume of 552311 shares trading hands. The stock had previously closed at $8.52.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on GPK shares. UBS Group reduced their price objective on shares of Graphic Packaging from $12.00 to $9.50 and set a "neutral" rating on the stock in a report on Monday. Weiss Ratings restated a "sell (d+)" rating on shares of Graphic Packaging in a report on Monday, September 21st. Bank of America dropped their target price on shares of Graphic Packaging from $14.00 to $13.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Wells Fargo & Company upped their price target on Graphic Packaging from $9.00 to $10.00 and gave the stock an "underweight" rating in a research note on Wednesday, August 5th. Finally, JPMorgan Chase & Co. raised Graphic Packaging from a "neutral" rating to an "overweight" rating and dropped their price objective for the company from $12.50 to $11.50 in a research note on Wednesday, September 23rd. One investment analyst has rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Graphic Packaging currently has a consensus rating of "Reduce" and a consensus price target of $10.73.

Graphic Packaging Stock Down 2.3%

The business's 50 day simple moving average is $10.46 and its 200 day simple moving average is $10.33. The company has a market capitalization of $2.46 billion, a PE ratio of 12.63 and a beta of 0.66. The company has a quick ratio of 0.60, a current ratio of 1.38 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 (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.02. Graphic Packaging had a return on equity of 9.95% and a net margin of 2.25%.The company had revenue of $2.19 billion during the quarter, compared to analyst estimates of $2.18 billion. During the same quarter in the prior year, the company earned $0.42 earnings per share. The company's revenue for the quarter was down .7% on a year-over-year basis. Graphic Packaging has set its FY 2026 guidance at 0.650-0.900 EPS. As a group, analysts forecast that Graphic Packaging Holding Company will post 0.72 EPS for the current year.

Graphic Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 6th. Investors of record on Tuesday, September 15th were given a dividend of $0.11 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.44 dividend on an annualized basis and a yield of 5.3%. Graphic Packaging's payout ratio is presently 66.67%.

Hedge Funds Weigh In On Graphic Packaging

A number of hedge funds have recently modified their holdings of the stock. Bell Investment Advisors Inc purchased a new position in Graphic Packaging in the second quarter valued at about $25,000. Physician Wealth Advisors Inc. lifted its holdings in shares of Graphic Packaging by 2,321.1% during the 1st quarter. Physician Wealth Advisors Inc. now owns 3,220 shares of the industrial products company's stock valued at $32,000 after buying an additional 3,087 shares during the last quarter. Versant Capital Management Inc lifted its holdings in shares of Graphic Packaging by 1,075.7% during the 2nd quarter. Versant Capital Management Inc now owns 3,480 shares of the industrial products company's stock valued at $37,000 after buying an additional 3,184 shares during the last quarter. Bessemer Group Inc. increased its holdings in Graphic Packaging by 259.4% in the first quarter. Bessemer Group Inc. now owns 4,148 shares of the industrial products company's stock worth $41,000 after buying an additional 2,994 shares during the last quarter. Finally, Elevation Wealth Partners LLC raised its position in Graphic Packaging by 2,165.1% during the second quarter. Elevation Wealth Partners LLC now owns 4,734 shares of the industrial products company's stock valued at $50,000 after acquiring an additional 4,525 shares in the last quarter. 99.67% of the stock is owned by institutional investors and hedge funds.

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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