Graphic Packaging Holding Company (GPK): Analyst Sentiment Positive Or Negative?

Analysts at UBS, assumed coverage of Graphic Packaging Holding Company (NYSE:GPK) with Neutral recommendation, according to their opinion released on January 04.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Graphic Packaging Holding Company (NYSE:GPK)’s prospects. The earliest insider trade took place on 10/25/2018. Venturelli Larry M gathered a total of 25 thousand shares of company at average share price of $10.59. The total for the purchase was set at $264.75 thousand. After this transaction, the Director account balance stood at 47.99 thousand shares. The stock grew 9.44 percent since that insider purchase. On 05/24/2018, Nichols Alan R, SVP, Mills, sold 101.3 thousand shares at a price per share of $15.08. This removed 1.53 million shares from the insider’s fortune and the stock saw a -23.14 percent retreat in value since the news became public. This transaction left 43.34 thousand shares in the SVP, Mills account. On 03/02/2018, SVP and President, Americas Yost Joseph P performed a sale transaction worth $750 thousand. This sale at $15 each has eliminated 50 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -22.73 percent decrease since the transaction was reported. The insider now is left with 306.93 thousand shares remaining in the account. Yost Joseph P, who performs the SVP and President, Americas job, sold 15.14 thousand shares for $236.14 thousand. The disposal occurred on 02/28/2018 was priced at $15.6 per share. The share price plunged -25.71 percent since the reporting date. Yost Joseph P now left with a stake of 343.47 thousand GPK stock worth $3.98 million after the insider selling.

Graphic Packaging Holding Company (GPK) is expected to jump by 29.85 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18-month high price target. This represents a whopping 55.31 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15, which represents a return potential of 29.42 percent when compared to the closing price of the stock of $11.59 on Friday, January 11. The lowest price target for the stock is $11.5 — slightly more than -0.78 percent from GPK’s current share price.

The shares are currently floating around the first support level of $11.39. Below this, the next support is placed in the zone of $11.19. Till the time, the GPK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.25 on daily chart, which may remain a cause for concern. If the price breaks below $11.19 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.7 mark may result into a pull-back move towards $11.81 level.

GPK shares accumulated 0.25 points or 2.2 percent on Friday to $11.59 with a light trade volume of 4.716 million shares. After opening the session at $11.35, the shares went as high as $11.61 and as low as $11.3, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.6 billion and now has 310.8 million shares outstanding. Graphic Packaging Holding Company (GPK) stock has gained 4.41 percent of market value in 21 trading days.

GPK stock has a trailing 3-year beta of 1.36, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.68 a share in the trailing twelve months. The stock’s value has surged 8.93 percent year to date (YTD) against a decline of -28.68 percent in 12 month’s time. The company’s shares still trade -30.76 percent away from its 1-year high of $16.74 and 15.44 percent up from 52-week low of $10.04. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Graphic Packaging Holding Company (GPK) are trading at a P/E ratio of 17.16 times earnings reported for the past 12 months. The industry GPK operates in has an average P/E of 13.12. Its P/E ratio went as low as 17.6X and as high as 50.18 over the 5-year span. Further, it is sporting a 0.64 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.81. 15.8 percent is the gross profit margin for Graphic Packaging Holding Company and operating margin sits at 7.7 percent. Along with this, the net profit margin is 6.2 percent.