Graphic Packaging (NYSE:GPK) Reaches New 52-Week Low on Disappointing Earnings

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

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

Graphic Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 7th. Shareholders of record on Monday, December 15th were issued a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 3.3%. The ex-dividend date was Monday, December 15th. Graphic Packaging’s payout ratio is currently 25.88%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on GPK shares. Weiss Ratings restated a “sell (d+)” rating on shares of Graphic Packaging in a research report on Monday, December 29th. Royal Bank Of Canada set a $16.00 price objective on Graphic Packaging and gave the stock a “sector perform” rating in a research report on Thursday, January 15th. Citigroup reduced their target price on shares of Graphic Packaging from $19.00 to $16.00 and set a “neutral” rating for the company in a research report on Tuesday, January 6th. Robert W. Baird lowered shares of Graphic Packaging from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, January 7th. Finally, UBS Group cut their price objective on shares of Graphic Packaging from $19.00 to $17.00 and set a “neutral” rating for the company in a report on Monday, January 12th. Eight research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price of $18.38.

Institutional Trading of Graphic Packaging

Institutional investors and hedge funds have recently modified their holdings of the business. Bessemer Group Inc. raised its stake in Graphic Packaging by 130.7% during the second quarter. Bessemer Group Inc. now owns 1,382 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 783 shares in the last quarter. Quarry LP increased its position in Graphic Packaging by 282.0% during the 3rd quarter. Quarry LP now owns 1,547 shares of the industrial products company’s stock worth $30,000 after purchasing an additional 1,142 shares in the last quarter. Marshall & Sterling Wealth Advisors Inc. bought a new position in Graphic Packaging in the 3rd quarter valued at approximately $31,000. MassMutual Private Wealth & Trust FSB grew its stake in shares of Graphic Packaging by 649.6% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 2,039 shares of the industrial products company’s stock worth $31,000 after buying an additional 1,767 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its holdings in shares of Graphic Packaging by 1,356.1% during the second quarter. Hantz Financial Services Inc. now owns 1,791 shares of the industrial products company’s stock worth $38,000 after buying an additional 1,668 shares in the last quarter. 99.67% of the stock is currently owned by institutional investors.

Graphic Packaging Stock Down 9.6%

The company has a current ratio of 1.54, a quick ratio of 0.63 and a debt-to-equity ratio of 1.67. The company has a market capitalization of $3.94 billion, a P/E ratio of 7.87 and a beta of 0.62. The stock has a 50 day moving average price of $15.40 and a 200 day moving average price of $18.18.

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.