Howard Capital Management Exits Graphic Packaging Holding Company with $20.92 Million Sale
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2026
0mins
Source: Fool
- Exit Transaction: On January 16, Howard Capital Management disclosed via an SEC filing that it sold its entire holding of 1,069,223 shares in Graphic Packaging for approximately $20.92 million, indicating a pessimistic outlook on the company's future performance.
- Portfolio Shift: This sale reduced Graphic Packaging's share in Howard Capital's 13F assets from 1.32% to 0%, with major holdings now focused on tech giants like NVDA and AAPL, reflecting a preference for liquidity and earnings durability over cyclical industrial exposure.
- Performance Pressure: Graphic Packaging reported a 2% year-over-year decline in packaging volumes and a 1% drop in sales to $2.19 billion in Q3, with adjusted EBITDA falling 11%, highlighting significant impacts on profitability due to weak demand and cost pressures.
- Rising Debt Risk: The company's net leverage increased from 3.0 times to 3.9 times adjusted EBITDA, driven by heavy capital spending on long-term projects, which, while potentially improving efficiency in the future, raises near-term balance sheet risks amid uncertain volumes.
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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 17.00 USD with a low forecast of 12.00 USD and a high forecast of 23.00 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.
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 14.840
Low
12.00
Averages
17.00
High
23.00
Current: 14.840
Low
12.00
Averages
17.00
High
23.00
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.
Graphic Packaging Under Investigation for Securities Fraud Amid Lowered EBITDA Guidance of $1.38 to $1.43 Billion
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Graphic Packaging Holding Company has engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to stock price volatility.
- Earnings Guidance Downgrade: The company announced on December 8, 2025, that its adjusted EBITDA outlook was lowered from $1.40 to $1.45 billion to a range of $1.38 to $1.43 billion, indicating a decline in profitability that may affect future investment decisions.
- Significant Stock Drop: Following the earnings warning, Graphic Packaging's stock price fell by $1.53, or 8.66%, to close at $14.23 per share on December 9, 2025, reflecting market concerns about the company's outlook.
- Potential Legal Consequences: Should the investigation confirm misconduct by the company and its executives, it may face class action lawsuits, exacerbating investor losses and increasing market uncertainty.
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Graphic Packaging Board Under Investigation for Breach of Fiduciary Duties
- Board Investigation: The Law Offices of Frank R. Cruz is investigating whether the board of Graphic Packaging breached its fiduciary duties to shareholders, particularly in light of shareholder dissatisfaction regarding the appointment of new CEO Robbert E. Rietbroek, which could impact corporate governance.
- Shareholder Response: In December 2025, a shareholder owning 4.2% of the company’s stock issued a letter expressing discontent over the CEO change, potentially leading to decreased shareholder confidence and affecting the company's stock performance.
- Executive Departures: Shortly after the CEO transition, the company’s Executive Vice President and General Counsel resigned, which may indicate internal governance issues and heighten investor concerns regarding the management team.
- Legal Outreach: The Law Offices of Frank R. Cruz is inviting shareholders who purchased shares before December 2025 to participate in the investigation, demonstrating a commitment to shareholder rights while potentially triggering further legal actions that could impact the company's reputation.
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