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Graphic Packaging Holding Company (NYSE:GPK) stock has reached a 52-week low, dipping to $24.17, as investors navigate through a tumultuous market environment. According to InvestingPro analysis, the stock appears undervalued at these levels, trading at an attractive P/E ratio of 11.7x while maintaining a 1.75% dividend yield. The packaging leader, known for its paper-based product solutions, has seen a notable decline over the past year, with the 1-year change data reflecting a decrease of 16.28% in its stock value. Despite these challenges, the company remains profitable with $658 million in net income over the last twelve months. This recent price level represents a significant drop for the company, which has been grappling with industry-wide challenges and changing market dynamics. Investors are closely monitoring GPK's performance for signs of a turnaround as the company strives to adapt and innovate in response to these pressures. InvestingPro subscribers can access 7 additional key insights and a comprehensive Pro Research Report, part of the platform's coverage of 1,400+ US stocks.
In other recent news, Graphic Packaging Holding Company reported fourth-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $0.46, falling short of the anticipated $0.62. Revenue for the quarter was $2.1 billion, which was also below the forecasted $2.16 billion. For the full year 2024, the company achieved an adjusted EBITDA margin of 19.1% and saw innovation sales growth of $205 million. Looking forward, Graphic Packaging provided guidance for fiscal year 2025, projecting earnings per share between $2.53 and $2.78 and revenue between $8.7 billion and $8.9 billion, both of which are below analyst consensus estimates.
In a strategic move, Graphic Packaging announced the closure of its Middletown, Ohio facility by June 2025 as part of a consolidation plan to enhance operations at its Kalamazoo, Michigan, and upcoming Waco, Texas locations. Truist Securities recently adjusted its price target for Graphic Packaging to $30 from $31, maintaining a Hold rating, while Citi lowered its target to $28 from $30, keeping a Neutral stance. These adjustments reflect concerns over the company's modest fourth-quarter results and 2025 EBITDA guidance that fell short of expectations. Despite these challenges, Graphic Packaging continues to focus on sustainable packaging solutions, aiming for a return to volume growth in 2025.
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