Graphic Packaging (NYSE:GPK) Stock Price Down 4.6% - Here's Why

Key Points

• Graphic Packaging shares fell 4.6% to about $10.48 in Thursday trading, with volume sharply below the stock’s average daily activity.
• Analysts remain cautious: nine rate the stock Hold and three Sell, producing a consensus “Reduce” rating and an average price target of $11.14.
• The company slightly exceeded quarterly earnings and revenue estimates, but sales declined year over year. Graphic Packaging also announced a quarterly dividend of $0.11 per share, yielding approximately 4.1% annually.

Graphic Packaging Holding Company (NYSE:GPK - Get Free Report)'s stock price fell 4.6% during trading on Thursday . The stock traded as low as $10.51 and last traded at $10.4760. Approximately 437,115 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 6,390,970 shares. The stock had previously closed at $10.98.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Robert W. Baird set a $13.00 target price on Graphic Packaging in a research note on Wednesday, May 6th. Bank of America assumed coverage on shares of Graphic Packaging in a research report on Tuesday, July 14th. They set a "neutral" rating and a $12.00 price target for the company. Zacks Research upgraded shares of Graphic Packaging from a "strong sell" rating to a "hold" rating in a report on Monday, June 1st. Citigroup lifted their price objective on shares of Graphic Packaging from $10.00 to $11.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Finally, Wells Fargo & Company boosted their target price on shares of Graphic Packaging from $9.00 to $10.00 and gave the company an "underweight" rating in a research note on Wednesday, August 5th. Nine research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Graphic Packaging has a consensus rating of "Reduce" and an average target price of $11.14.

Graphic Packaging Trading Down 3.2%

The stock has a market cap of $3.15 billion, a PE ratio of 16.10 and a beta of 0.65. The company has a current ratio of 1.38, a quick ratio of 0.60 and a debt-to-equity ratio of 1.58. The firm has a fifty day simple moving average of $11.12 and a two-hundred day simple moving average of $10.66.

Graphic Packaging (NYSE:GPK - Get Free Report) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.02. Graphic Packaging had a net margin of 2.25% and a return on equity of 9.95%. The company had revenue of $2.19 billion during the quarter, compared to analyst estimates of $2.18 billion. During the same period in the previous year, the business earned $0.42 earnings per share. The firm's quarterly revenue was down .7% compared to the same quarter last year. Graphic Packaging has set its FY 2026 guidance at 0.650-0.900 EPS. As a group, equities analysts expect that Graphic Packaging Holding Company will post 0.71 earnings per share for the current fiscal year.

Graphic Packaging Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Tuesday, September 15th. Graphic Packaging's payout ratio is 66.67%.

Hedge Funds Weigh In On Graphic Packaging

Several institutional investors and hedge funds have recently modified their holdings of the stock. Eminence Capital LP increased its position in shares of Graphic Packaging by 67.5% during the 4th quarter. Eminence Capital LP now owns 12,811,941 shares of the industrial products company's stock valued at $192,948,000 after purchasing an additional 5,163,806 shares during the last quarter. Manning & Napier Advisors LLC boosted its holdings in shares of Graphic Packaging by 279.3% in the fourth quarter. Manning & Napier Advisors LLC now owns 132,763 shares of the industrial products company's stock worth $1,999,000 after buying an additional 97,763 shares during the last quarter. Thompson Siegel & Walmsley LLC boosted its holdings in shares of Graphic Packaging by 51.7% in the fourth quarter. Thompson Siegel & Walmsley LLC now owns 6,195,333 shares of the industrial products company's stock worth $93,302,000 after buying an additional 2,111,157 shares during the last quarter. Bank of America Corp DE grew its position in Graphic Packaging by 16.0% during the first quarter. Bank of America Corp DE now owns 3,913,194 shares of the industrial products company's stock valued at $38,897,000 after buying an additional 538,810 shares during the period. Finally, Assenagon Asset Management S.A. purchased a new stake in Graphic Packaging during the second quarter valued at approximately $7,146,000. 99.67% of the stock is currently owned by institutional investors.

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.

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