Graphic Packaging (NYSE:GPK) Sets New 1-Year Low – Should You Sell?

Graphic Packaging Holding Company (NYSE:GPK)’s stock price reached a new 52-week low during trading on Monday . The stock traded as low as $10.61 and last traded at $10.70, with a volume of 773655 shares trading hands. The stock had previously closed at $11.22.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Wells Fargo & Company cut their target price on shares of Graphic Packaging from $12.00 to $11.00 and set an “underweight” rating for the company in a research note on Wednesday, February 4th. Zacks Research cut shares of Graphic Packaging from a “hold” rating to a “strong sell” rating in a report on Wednesday, January 14th. Robert W. Baird set a $15.00 price objective on shares of Graphic Packaging in a research report on Wednesday, February 4th. Royal Bank Of Canada set a $13.00 target price on Graphic Packaging in a research report on Wednesday, February 4th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Graphic Packaging in a research note on Monday, December 29th. Eight analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $16.63.

Graphic Packaging Stock Down 3.4%

The company has a current ratio of 1.30, a quick ratio of 0.52 and a debt-to-equity ratio of 1.50. The firm has a market cap of $3.21 billion, a price-to-earnings ratio of 7.32 and a beta of 0.65. The firm’s 50 day simple moving average is $13.85 and its two-hundred day simple moving average is $16.44.

Graphic Packaging (NYSE:GPK) last announced its earnings results on Monday, March 2nd. The industrial products company reported $0.24 earnings per share (EPS) for the quarter. Graphic Packaging had a net margin of 5.15% and a return on equity of 16.58%. The firm had revenue of $2.10 billion for the quarter. On average, equities analysts forecast that Graphic Packaging Holding Company will post 2.47 EPS for the current year.

Graphic Packaging Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 8th. Investors of record on Sunday, March 15th will be given a dividend of $0.11 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $0.44 dividend on an annualized basis and a yield of 4.1%. Graphic Packaging’s dividend payout ratio is currently 29.73%.

Insider Buying and Selling

In related news, CEO Robbert Rietbroek acquired 44,278 shares of the stock in a transaction on Wednesday, March 4th. The shares were purchased at an average price of $11.32 per share, for a total transaction of $501,226.96. Following the purchase, the chief executive officer directly owned 44,278 shares in the company, valued at approximately $501,226.96. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 1.41% of the stock is currently owned by company insiders.

Institutional Trading of Graphic Packaging

Several large investors have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC increased its position in Graphic Packaging by 8.5% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 19,138,977 shares of the industrial products company’s stock worth $374,550,000 after purchasing an additional 1,502,681 shares in the last quarter. Royce & Associates LP boosted its position in Graphic Packaging by 15.6% in the third quarter. Royce & Associates LP now owns 1,244,210 shares of the industrial products company’s stock valued at $24,349,000 after buying an additional 167,623 shares in the last quarter. Texas Permanent School Fund Corp grew its stake in shares of Graphic Packaging by 48.0% during the second quarter. Texas Permanent School Fund Corp now owns 234,885 shares of the industrial products company’s stock worth $4,949,000 after buying an additional 76,226 shares during the last quarter. Y Intercept Hong Kong Ltd acquired a new position in shares of Graphic Packaging during the third quarter worth $2,683,000. Finally, Barings LLC increased its holdings in shares of Graphic Packaging by 63.8% during the second quarter. Barings LLC now owns 83,412 shares of the industrial products company’s stock worth $1,757,000 after buying an additional 32,503 shares in the last quarter. 99.67% of the stock is owned by institutional investors and hedge funds.

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.