Eminence Calls for GPK Shareholders to Reinstate Former CEO Doss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: PRnewswire
- Shareholder Demand: Eminence Capital, holding approximately 4.2% of GPK, has sent an open letter urging shareholders to reinstate former CEO Mike Doss, arguing that the Board's decision lacks transparency and could lead to long-term damage to the company.
- Stock Price Decline: GPK's stock has fallen nearly 50% over the past year, with Eminence attributing this decline to industry oversupply and macroeconomic factors, while the Board blames Doss, indicating a misunderstanding of industry dynamics.
- Strategic Decisions: Under Doss's leadership, GPK established the most cost-effective manufacturing footprint in the industry and enhanced its European market position through the acquisition of AR Packaging, which Eminence believes positioned the company favorably in a competitive landscape.
- Board Process Scrutiny: Eminence questions the Board's decision-making process, suggesting it lacks the necessary rigor and transparency, and is demanding a thorough review to ensure shareholder interests are protected.
GPK
$15.32+Infinity%1D
Analyst Views on GPK
Wall Street analysts forecast GPK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GPK is 20.25 USD with a low forecast of 20.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
0 Buy
7 Hold
0 Sell
Hold
Current: 15.430
Low
20.00
Averages
20.25
High
21.00
Current: 15.430
Low
20.00
Averages
20.25
High
21.00
About GPK
Graphic Packaging Holding Company is a consumer packaging provider. It produces consumer goods packaging made from renewable or recycled materials. It designs and manufactures packaging solutions including cartons, multipack cartons, trays, carriers, paperboard canisters, cups and bowls made from unbleached paperboard, recycled paperboard, and bleached paperboard. Its segments include Americas Paperboard Packaging and International Paperboard Packaging. The Americas Paperboard Packaging segment includes paperboard packaging sold primarily to consumer-packaged goods (CPG) companies serving the food, beverage, and consumer product markets and cups, lids and food containers sold primarily to foodservice companies and quick-service restaurants (QSR) in the Americas. The International Paperboard Packaging segment includes paperboard packaging sold primarily to CPG companies serving the food, beverage and consumer product markets, including healthcare and beauty, outside the Americas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
