Graphic Packaging Holding (NYSE:GPK) Receives Average Recommendation of “Moderate Buy” from Brokerages

Graphic Packaging Holding (NYSE:GPK) has been given a consensus rating of “Moderate Buy” by the seven ratings firms that are presently covering the company, Marketbeat reports. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $29.17.

A number of equities analysts recently issued reports on GPK shares. Royal Bank of Canada dropped their price objective on shares of Graphic Packaging from $32.00 to $26.00 and set an “outperform” rating on the stock in a report on Friday, May 2nd. Robert W. Baird dropped their price objective on shares of Graphic Packaging from $36.00 to $32.00 and set an “outperform” rating on the stock in a report on Wednesday, February 5th. Raymond James reissued an “outperform” rating and issued a $26.00 price objective (down previously from $30.00) on shares of Graphic Packaging in a report on Friday, May 2nd. Finally, Truist Financial dropped their price objective on shares of Graphic Packaging from $30.00 to $28.00 and set a “hold” rating on the stock in a report on Tuesday, April 22nd.

Hedge Funds Weigh In On Graphic Packaging

Large investors have recently added to or reduced their stakes in the company. Synergy Asset Management LLC lifted its holdings in Graphic Packaging by 108.6% during the fourth quarter. Synergy Asset Management LLC now owns 64,343 shares of the industrial products company’s stock valued at $1,810,000 after purchasing an additional 33,493 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in Graphic Packaging by 8.0% during the third quarter. JPMorgan Chase & Co. now owns 10,610,233 shares of the industrial products company’s stock valued at $313,957,000 after purchasing an additional 787,266 shares in the last quarter. Wells Fargo & Company MN lifted its holdings in Graphic Packaging by 0.3% during the fourth quarter. Wells Fargo & Company MN now owns 194,467 shares of the industrial products company’s stock valued at $5,282,000 after purchasing an additional 608 shares in the last quarter. Advocate Group LLC lifted its holdings in Graphic Packaging by 14.5% during the fourth quarter. Advocate Group LLC now owns 226,399 shares of the industrial products company’s stock valued at $6,149,000 after purchasing an additional 28,703 shares in the last quarter. Finally, Victory Capital Management Inc. lifted its holdings in Graphic Packaging by 9.0% during the fourth quarter. Victory Capital Management Inc. now owns 836,357 shares of the industrial products company’s stock valued at $22,715,000 after purchasing an additional 68,956 shares in the last quarter. Hedge funds and other institutional investors own 99.67% of the company’s stock.

Graphic Packaging Stock Performance

Shares of NYSE GPK opened at $22.62 on Friday. The firm’s 50-day moving average price is $24.31 and its 200-day moving average price is $26.55. The company has a quick ratio of 0.54, a current ratio of 1.46 and a debt-to-equity ratio of 1.71. The company has a market cap of $6.83 billion, a PE ratio of 10.47, a PEG ratio of 2.10 and a beta of 0.81. Graphic Packaging has a 52-week low of $20.86 and a 52-week high of $30.70.

Graphic Packaging (NYSE:GPK) last announced its quarterly earnings results on Thursday, May 1st. The industrial products company reported $0.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.05). The company had revenue of $2.12 billion for the quarter, compared to analysts’ expectations of $2.14 billion. Graphic Packaging had a net margin of 7.47% and a return on equity of 25.96%. The business’s revenue was down 6.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.66 EPS. As a group, analysts anticipate that Graphic Packaging will post 2.47 EPS for the current year.

Graphic Packaging declared that its Board of Directors has authorized a stock repurchase plan on Thursday, May 1st that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the industrial products company to reacquire up to 23.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Graphic Packaging Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Saturday, July 5th. Shareholders of record on Sunday, June 15th will be issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 1.95%. The ex-dividend date of this dividend is Friday, June 13th. Graphic Packaging’s dividend payout ratio is currently 21.46%.

Graphic Packaging Company Profile

Graphic Packaging Holding Company, together with its subsidiaries, designs, produces, and sells consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products. It operates through three segments: Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging.