Graphic Packaging (NYSE:GPK) Sets New 12-Month Low Following Weak Earnings

Shares of Graphic Packaging Holding Company (NYSE:GPK) hit a new 52-week low during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $13.89 and last traded at $13.6140, with a volume of 1227140 shares. The stock had previously closed at $14.78.

The industrial products company reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.11). Graphic Packaging had a return on equity of 19.98% and a net margin of 5.94%.The firm had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter last year, the firm posted $0.59 earnings per share. The business’s revenue for the quarter was up .4% on a year-over-year basis. Graphic Packaging has set its FY 2026 guidance at 0.750-1.15 EPS.

Graphic Packaging Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 7th. Investors of record on Monday, December 15th were given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Monday, December 15th. Graphic Packaging’s dividend payout ratio (DPR) is currently 25.88%.

Wall Street Analyst Weigh In

GPK has been the topic of a number of analyst reports. Royal Bank Of Canada set a $16.00 price objective on shares of Graphic Packaging and gave the company a “sector perform” rating in a research note on Thursday, January 15th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Graphic Packaging in a report on Monday, December 29th. Raymond James Financial downgraded shares of Graphic Packaging from an “outperform” rating to a “market perform” rating in a research report on Friday, October 17th. Zacks Research cut shares of Graphic Packaging from a “hold” rating to a “strong sell” rating in a report on Wednesday, January 14th. Finally, Truist Financial dropped their price objective on shares of Graphic Packaging from $20.00 to $18.00 and set a “hold” rating on the stock in a report on Tuesday, January 6th. Eight investment 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, the stock has a consensus rating of “Reduce” and an average target price of $18.38.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bessemer Group Inc. lifted its position in shares of Graphic Packaging by 130.7% during the 2nd quarter. Bessemer Group Inc. now owns 1,382 shares of the industrial products company’s stock worth $29,000 after buying an additional 783 shares in the last quarter. Quarry LP increased its position 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 valued at $30,000 after acquiring an additional 1,142 shares during the last quarter. Marshall & Sterling Wealth Advisors Inc. bought a new position in Graphic Packaging in the 3rd quarter valued at $31,000. Hantz Financial Services Inc. raised its stake in shares of Graphic Packaging by 1,356.1% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,791 shares of the industrial products company’s stock worth $38,000 after purchasing an additional 1,668 shares during the period. Finally, Operose Advisors LLC purchased a new position in shares of Graphic Packaging in the 2nd quarter worth about $42,000. 99.67% of the stock is currently owned by hedge funds and other institutional investors.

Graphic Packaging Trading Down 9.6%

The firm’s 50-day simple moving average is $15.40 and its 200 day simple moving average is $18.18. The firm has a market cap of $3.94 billion, a P/E ratio of 7.87 and a beta of 0.62. The company has a quick ratio of 0.63, a current ratio of 1.54 and a debt-to-equity ratio of 1.67.

About Graphic Packaging

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.