Graphic Packaging (NYSE:GPK) Shares Gap Up Following Better-Than-Expected Earnings

Graphic Packaging Holding Company (NYSE:GPK) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $9.56, but opened at $10.87. Graphic Packaging shares last traded at $10.1040, with a volume of 1,621,944 shares trading hands.

The industrial products company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.03. The business had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.05 billion. Graphic Packaging had a net margin of 5.15% and a return on equity of 16.58%. Graphic Packaging’s quarterly revenue was up 1.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.51 EPS. Graphic Packaging has set its FY 2026 guidance at 0.750-1.150 EPS.

Graphic Packaging Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Sunday, March 15th were issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 4.2%. The ex-dividend date was Friday, March 13th. Graphic Packaging’s dividend payout ratio (DPR) is 29.73%.

Analyst Upgrades and Downgrades

Several brokerages have commented on GPK. Deutsche Bank Aktiengesellschaft began coverage on shares of Graphic Packaging in a report on Wednesday, April 1st. They set a “hold” rating and a $9.60 target price on the stock. UBS Group dropped their target price on shares of Graphic Packaging from $13.00 to $10.00 and set a “neutral” rating on the stock in a report on Friday, April 10th. Weiss Ratings restated a “sell (d+)” rating on shares of Graphic Packaging in a report on Friday, March 27th. Citigroup dropped their target price on shares of Graphic Packaging from $13.00 to $10.00 and set a “neutral” rating on the stock in a report on Tuesday, April 14th. Finally, Royal Bank Of Canada decreased their price objective on Graphic Packaging from $13.00 to $10.00 and set a “sector perform” rating for the company in a report on Friday, March 20th. Eight analysts have rated the stock with a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $12.20.

Insider Activity

In other Graphic Packaging news, CEO Robbert Rietbroek acquired 44,278 shares of the stock in a transaction dated Wednesday, March 4th. The shares were bought at an average cost of $11.32 per share, for a total transaction of $501,226.96. Following the completion of the acquisition, the chief executive officer directly owned 44,278 shares of the company’s stock, valued at approximately $501,226.96. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.41% of the stock is owned by company insiders.

Institutional Trading of Graphic Packaging

A number of hedge funds and other institutional 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 raised its holdings in shares of Graphic Packaging by 17.1% in the fourth quarter. Farther Finance Advisors LLC now owns 4,450 shares of the industrial products company’s stock valued at $67,000 after purchasing an additional 651 shares during the last quarter. Thrivent Financial for Lutherans raised its holdings 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 valued at $1,497,000 after purchasing an additional 660 shares during the last quarter. Oppenheimer & Co. Inc. raised its holdings 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 valued at $1,273,000 after purchasing an additional 711 shares during the last quarter. Finally, Hsbc Holdings PLC raised its holdings 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 valued at $326,000 after purchasing an additional 791 shares during the last quarter. 99.67% of the stock is currently owned by institutional investors and hedge funds.

Graphic Packaging Stock Up 9.7%

The company has a quick ratio of 0.52, a current ratio of 1.30 and a debt-to-equity ratio of 1.50. The company has a market capitalization of $3.10 billion, a price-to-earnings ratio of 7.01 and a beta of 0.61. The stock’s fifty day moving average price is $10.11 and its 200-day moving average price is $13.52.

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.