Wells Fargo & Company Has Lowered Expectations for Graphic Packaging (NYSE:GPK) Stock Price

Key Points

• Wells Fargo cut its price objective on Graphic Packaging from $9.00 to $8.00 and kept an "underweight" rating, implying about a 16.7% potential downside from the prior close.
• Analyst sentiment is weak overall — MarketBeat shows a consensus rating of "Reduce" (nine Holds, three Sells) with a consensus target of $14.40 and several firms (UBS, RBC) trimming targets to around $10.
• Shares traded at $9.61 (near a 52-week low of $8.78) with a P/E of 6.51 and $2.84B market cap, while CEO Robbert Rietbroek bought 44,278 shares at $11.32, signaling insider buying amid heavy institutional ownership.

Graphic Packaging (NYSE:GPK - Get Free Report) had its price objective cut by stock analysts at Wells Fargo & Company from $9.00 to $8.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has an "underweight" rating on the industrial products company's stock. Wells Fargo & Company's price target would indicate a potential downside of 16.71% from the company's previous close.

A number of other research firms also recently issued reports on GPK. Truist Financial set a $14.00 price objective on shares of Graphic Packaging in a report on Wednesday, February 4th. Weiss Ratings reissued a "sell (d+)" rating on shares of Graphic Packaging in a research note on Friday, March 27th. UBS Group decreased their price target on shares of Graphic Packaging from $13.00 to $10.00 and set a "neutral" rating for the company in a research report on Friday. Deutsche Bank Aktiengesellschaft began coverage on shares of Graphic Packaging in a research report on Wednesday, April 1st. They issued a "hold" rating and a $9.60 price target for the company. Finally, Royal Bank Of Canada decreased their price target on shares of Graphic Packaging from $13.00 to $10.00 and set a "sector perform" rating for the company in a research report on Friday, March 20th. Nine research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Graphic Packaging presently has a consensus rating of "Reduce" and a consensus target price of $14.40.

Graphic Packaging Stock Performance

Shares of GPK stock traded down $0.20 during midday trading on Tuesday, hitting $9.61. 562,378 shares of the company were exchanged, compared to its average volume of 7,014,707. The firm has a market capitalization of $2.84 billion, a P/E ratio of 6.51 and a beta of 0.69. 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 firm's 50 day moving average price is $10.95 and its two-hundred day moving average price is $14.36. Graphic Packaging has a 52 week low of $8.78 and a 52 week high of $25.81.

Graphic Packaging (NYSE:GPK - Get Free Report) last announced its earnings results on Monday, March 2nd. The industrial products company reported $0.24 EPS for the quarter. The business had revenue of $2.10 billion during the quarter. Graphic Packaging had a net margin of 5.15% and a return on equity of 16.58%. As a group, equities research analysts anticipate that Graphic Packaging will post 2.47 earnings per share for the current year.

Insider Transactions at Graphic Packaging

In related news, CEO Robbert Rietbroek bought 44,278 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were acquired at an average cost of $11.32 per share, with a total value of $501,226.96. Following the completion of the purchase, the chief executive officer directly owned 44,278 shares in the company, valued at $501,226.96. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.41% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. NewEdge Advisors LLC raised its holdings in shares of Graphic Packaging by 3.0% in the second quarter. NewEdge Advisors LLC now owns 18,379 shares of the industrial products company's stock valued at $387,000 after purchasing an additional 539 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in Graphic Packaging by 17.1% during the fourth quarter. Farther Finance Advisors LLC now owns 4,450 shares of the industrial products company's stock worth $67,000 after buying an additional 651 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in shares of Graphic Packaging by 0.9% in the second quarter. Thrivent Financial for Lutherans now owns 71,049 shares of the industrial products company's stock worth $1,497,000 after purchasing an additional 660 shares in the last quarter. Oppenheimer & Co. Inc. increased its stake in shares of Graphic Packaging by 1.1% in the third quarter. Oppenheimer & Co. Inc. now owns 65,067 shares of the industrial products company's stock worth $1,273,000 after purchasing an additional 711 shares in the last quarter. Finally, Hsbc Holdings PLC increased its stake in shares of Graphic Packaging by 5.4% in the second quarter. Hsbc Holdings PLC now owns 15,485 shares of the industrial products company's stock worth $326,000 after purchasing an additional 791 shares in the last quarter. 99.67% of the stock is 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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