Graphic Packaging (NYSE:GPK) Reaches New 12-Month High on Earnings Beat

Graphic Packaging Holding (NYSE:GPK) shares reached a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $15.76 and last traded at $15.69, with a volume of 486146 shares changing hands. The stock had previously closed at $14.88.

The industrial products company reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.19 by $0.01. Graphic Packaging had a net margin of 4.32% and a return on equity of 12.94%. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the previous year, the company earned $0.22 earnings per share. Graphic Packaging’s quarterly revenue was up 3.3% compared to the same quarter last year.

The business also recently declared a quarterly dividend, which was paid on Saturday, October 5th. Investors of record on Sunday, September 15th were given a $0.075 dividend. The ex-dividend date was Thursday, September 12th. This represents a $0.30 dividend on an annualized basis and a yield of 1.96%. Graphic Packaging’s dividend payout ratio (DPR) is presently 37.04%.

A number of equities research analysts recently weighed in on GPK shares. KeyCorp reissued a “hold” rating on shares of Graphic Packaging in a research report on Thursday, September 26th. Zacks Investment Research cut shares of Graphic Packaging from a “buy” rating to a “hold” rating in a research report on Thursday, August 15th. Finally, Citigroup boosted their price target on shares of Graphic Packaging from $16.00 to $17.00 and gave the company a “buy” rating in a research report on Thursday, July 11th. Five equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Graphic Packaging presently has an average rating of “Hold” and an average price target of $16.00.

A number of hedge funds and other institutional investors have recently bought and sold shares of GPK. BlackRock Inc. increased its stake in Graphic Packaging by 9.7% in the second quarter. BlackRock Inc. now owns 14,593,172 shares of the industrial products company’s stock valued at $204,013,000 after purchasing an additional 1,285,105 shares during the period. Marshall Wace North America L.P. increased its stake in Graphic Packaging by 65.9% in the second quarter. Marshall Wace North America L.P. now owns 3,006,131 shares of the industrial products company’s stock valued at $42,026,000 after purchasing an additional 1,193,788 shares during the period. Nuveen Asset Management LLC acquired a new position in Graphic Packaging in the second quarter valued at $15,844,000. D. E. Shaw & Co. Inc. increased its stake in Graphic Packaging by 74.7% in the second quarter. D. E. Shaw & Co. Inc. now owns 2,600,068 shares of the industrial products company’s stock valued at $36,349,000 after purchasing an additional 1,111,724 shares during the period. Finally, Invesco Ltd. increased its stake in Graphic Packaging by 60.5% in the second quarter. Invesco Ltd. now owns 2,931,459 shares of the industrial products company’s stock valued at $40,982,000 after purchasing an additional 1,105,340 shares during the period.

The company has a debt-to-equity ratio of 1.46, a current ratio of 1.70 and a quick ratio of 0.70. The company has a market capitalization of $4.31 billion, a price-to-earnings ratio of 18.94, a price-to-earnings-growth ratio of 1.30 and a beta of 1.35. The business’s 50 day simple moving average is $14.32 and its 200 day simple moving average is $13.84.

About Graphic Packaging (NYSE:GPK)

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers coated unbleached kraft (CUK), coated recycled paperboard (CRB), and solid bleached sulfate paperboard (SBS) to various paperboard packaging converters and brokers; and paperboard packaging folding cartons and cups, lids, and food containers primarily to consumer packaged goods, quick-service restaurants, and foodservice companies.

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