Graphic Packaging Holding Company [GPK] stock Downgrade by Morgan Stanley analyst, price target now $20

Graphic Packaging Holding Company [NYSE: GPK] stock went on an upward path that rose over 1.10% on Monday, amounting to a one-week price increase of more than 2.22%. The company report on July 23, 2021 that Graphic Packaging launches OptiCycleTM line of non-PE coated foodservice packaging.

Graphic Packaging Holding Company (NYSE: GPK) (“the Company”) announced the release of OptiCycle™, a new, innovative line of non-polyethylene (PE) coated, single-use foodservice packaging that provides an alternative to traditional PE and polylactic acid (PLA) coated products. The first packaging solution of its kind to be commercialized by a domestic supplier in North America, OptiCycle is made to be more easily recyclable by allowing smooth separation of the liquid barrier coating from the paper. When OptiCycle is repulped, approximately 98%[1] of the fiber is recovered which means that almost the entire cup can be used to make other paper products.

“Paper cups made with renewable fiber are a great on-the-go beverage option for brands and consumers,” said Michael Doss, Graphic Packaging’s President and CEO. “OptiCycle’s advanced coating technology is water-based, requires less coating material and increases the amount of fiber that can be recovered when it is recycled.”.

Over the last 12 months, GPK stock rose by 21.71%. The one-year Graphic Packaging Holding Company stock forecast points to a potential upside of 17.62. The average equity rating for GPK stock is currently 2.10, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $4.97 billion, with 306.98 million shares outstanding and 281.59 million shares in the current float. Compared to the average trading volume of 3.80M shares, GPK stock reached a trading volume of 4783521 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Graphic Packaging Holding Company [GPK]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GPK shares is $21.23 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GPK stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Graphic Packaging Holding Company shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on May 03, 2021. The new note on the price target was released on April 28, 2021, representing the official price target for Graphic Packaging Holding Company stock. Previously, the target price had yet another raise to $22, while Goldman analysts kept a Buy rating on GPK stock.

The Average True Range (ATR) for Graphic Packaging Holding Company is set at 0.35, with the Price to Sales ratio for GPK stock in the period of the last 12 months amounting to 0.75. The Price to Book ratio for the last quarter was 3.15, with the Price to Cash per share for the same quarter was set at 0.41. Price to Free Cash Flow for GPK in the course of the last twelve months was 6.03 with Quick ratio for the last quarter at 0.60.

GPK Stock Performance Analysis:

Graphic Packaging Holding Company [GPK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.22. With this latest performance, GPK shares dropped by -2.24% in over the last four-week period, additionally plugging by 2.40% over the last 6 months – not to mention a rise of 21.71% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GPK stock in for the last two-week period is set at 45.26, with the RSI for the last a single of trading hit 46.53, and the three-weeks RSI is set at 45.43 for Graphic Packaging Holding Company [GPK]. The present Moving Average for the last 50 days of trading for this stock 17.86, while it was recorded at 17.38 for the last single week of trading, and 16.95 for the last 200 days.

Insight into Graphic Packaging Holding Company Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Graphic Packaging Holding Company [GPK] shares currently have an operating margin of +9.59 and a Gross Margin at +17.26. Graphic Packaging Holding Company’s Net Margin is presently recorded at +2.55.

Return on Total Capital for GPK is now 11.30, given the latest momentum, and Return on Invested Capital for the company is 3.61. Return on Equity for this stock inclined to 11.17, with Return on Assets sitting at 2.22. When it comes to the capital structure of this company, Graphic Packaging Holding Company [GPK] has a Total Debt to Total Equity ratio set at 271.14. Additionally, GPK Total Debt to Total Capital is recorded at 73.06, with Total Debt to Total Assets ending up at 49.48. Long-Term Debt to Equity for the company is recorded at 231.99, with the Long-Term Debt to Total Capital now at 62.51.

Reflecting on the efficiency of the workforce at the company, Graphic Packaging Holding Company [GPK] managed to generate an average of $8,911 per employee. Receivables Turnover for the company is 11.21 with a Total Asset Turnover recorded at a value of 0.87.Graphic Packaging Holding Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 1.40.


The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GPK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Graphic Packaging Holding Company go to 19.68%.

Graphic Packaging Holding Company [GPK] Insider Position Details

There are presently around $4,882 million, in the hands of institutional investors. The top three institutional holders of GPK stocks are: VANGUARD GROUP INC with ownership of 24,057,564, which is approximately 1.237% of the company’s market cap and around 1.00% of the total institutional ownership; FULLER & THALER ASSET MANAGEMENT, INC., holding 17,874,283 shares of the stock with an approximate value of $312.62 million in GPK stocks shares; and SHAPIRO CAPITAL MANAGEMENT LLC, currently with $259.4 million in GPK stock with ownership of nearly 11.86% of the company’s market capitalization.

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Positions in Graphic Packaging Holding Company stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 139 institutional holders increased their position in Graphic Packaging Holding Company [NYSE:GPK] by around 44,439,752 shares. Additionally, 162 investors decreased positions by around 17,049,997 shares, while 33 investors held positions by with 217,650,134 shares. The mentioned changes placed institutional holdings at 279,139,883 shares, according to the latest SEC report filing. GPK stock had 33 new institutional investments in for a total of 10,213,470 shares, while 51 institutional investors sold positions of 2,866,186 shares during the same period.

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