Graphic Packaging Holding (NYSE:GPK) Plans Quarterly Dividend of $0.11

Graphic Packaging Holding (NYSE:GPK) declared a quarterly dividend on Thursday, May 22nd, RTT News reports. Investors of record on Sunday, June 15th will be given a dividend of 0.11 per share by the industrial products company on Saturday, July 5th. This represents a $0.44 annualized dividend and a yield of 1.96%. The ex-dividend date of this dividend is Friday, June 13th.

Graphic Packaging has a dividend payout ratio of 17.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Graphic Packaging to earn $2.73 per share next year, which means the company should continue to be able to cover its $0.44 annual dividend with an expected future payout ratio of 16.1%.

Graphic Packaging Stock Up 1.0%

Shares of NYSE GPK opened at $22.47 on Wednesday. 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 stock has a market cap of $6.78 billion, a PE ratio of 10.40, a price-to-earnings-growth ratio of 2.10 and a beta of 0.74. The business has a 50-day moving average price of $23.46 and a 200 day moving average price of $25.99. Graphic Packaging has a 52-week low of $20.86 and a 52-week high of $30.70.

Graphic Packaging (NYSE:GPK) last posted its quarterly earnings data on Thursday, May 1st. The industrial products company reported $0.51 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.05). Graphic Packaging had a net margin of 7.47% and a return on equity of 25.96%. The company had revenue of $2.12 billion for the quarter, compared to analysts’ expectations of $2.14 billion. During the same period in the prior year, the company earned $0.66 earnings per share. The firm’s revenue was down 6.2% on a year-over-year basis. Equities research analysts forecast that Graphic Packaging will post 2.47 earnings per share for the current year.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Graphic Packaging stock. AQR Capital Management LLC raised its position in Graphic Packaging Holding (NYSE:GPK) by 36.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 171,608 shares of the industrial products company’s stock after acquiring an additional 45,944 shares during the quarter. AQR Capital Management LLC owned 0.06% of Graphic Packaging worth $4,453,000 at the end of the most recent quarter. 99.67% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

GPK has been the topic of a number of analyst reports. Royal Bank of Canada decreased their price target on Graphic Packaging from $32.00 to $26.00 and set an “outperform” rating on the stock in a research note on Friday, May 2nd. Raymond James restated an “outperform” rating and set a $26.00 price objective (down from $30.00) on shares of Graphic Packaging in a research report on Friday, May 2nd. UBS Group initiated coverage on shares of Graphic Packaging in a research note on Wednesday, June 4th. They set a “neutral” rating and a $24.00 price target on the stock. Finally, Truist Financial reduced their target price on Graphic Packaging from $30.00 to $28.00 and set a “hold” rating on the stock in a research report on Tuesday, April 22nd. Five investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $28.53.

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

About Graphic Packaging

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.