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Graphic Packaging Holding Announces $250 Million Share Repurchase Program

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Jan. 17 2017, Updated 6:06 p.m. ET

Price movement

Graphic Packaging Holding Company (GPK) fell 0.08% to close at $12.82 per share during the second week of January 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.08%, -0.62%, and 2.7%, respectively, on January 13.

GPK is trading 0.82% above its 20-day moving average, 0.89% above its 50-day moving average, and 2.3% below its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap Value ETF (VBR) invests 0.26% of its holdings in GPK. The YTD price movement of VBR was 1.1% on January 13.

The market caps of GPK’s competitors are as follows:

  • International Paper Company (IP) — $22.1 billion
  • WestRock Company (WRK) — $13.1 billion

Latest news on GPK

Graphic Packaging Holding Company has announced a new share repurchase program of $250 million.

The company reported, “The new $250 million authorization allows for the repurchase of shares from time to time through open market purchases, privately negotiated transactions and Rule 10b5-1 plans in accordance with applicable securities laws. The timing of purchases will depend on market conditions.”

Performance of Graphic Packaging in 3Q16

Graphic Packaging Holding (GPK) reported 3Q16 net sales of $1.1 billion, a rise of 3.1% compared to $1.2 billion in 3Q15. The company’s income from operations as a percentage of net sales narrowed 80 basis points in 3Q16 compared to 3Q15.

Its net income fell to $57.8 million in 3Q16 compared to $60.2 million in 3Q15. It reported EPS (earnings per share) of $0.18 for 3Q16 and 3Q15. It reported adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] of $200.1 million in 3Q16, a rise of 1.5% compared to 3Q15.

GPK’s cash and cash equivalents fell 16.8%, and its inventories rose 6.2% between 3Q16 and 4Q15.

Next, we’ll look at Mohawk Industries (MHK).

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