Graphic Packaging Stock Is Slumping — But a New $12.6 Million Stake Signals a Value Play

New York City-based Atlantic Investment Management initiated a new position in Graphic Packaging Holding Company (GPK), adding 645,584 shares valued at approximately $12.6 million, according to a November 14 SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Atlantic Investment Management disclosed a new stake in Graphic Packaging Holding Company (GPK), acquiring 645,584 shares in the third quarter. The position was valued at $12.6 million as of September 30.

What Else to Know

This new position in Graphic Packaging Holding Company represents 7.3% of the fund's $174.1 million in reportable assets as of September 30.

Top holdings after this filing:

• NYSE:GTLS: $29.5 million (17% of AUM)
• NYSE:APTV: $26.3 million (15.1% of AUM)
• NASDAQ:WFRD: $24.7 million (14.2% of AUM)
• NYSE:AXTA: $21.9 million (12.6% of AUM)
• NYSE:OSK: $19.3 million (11.1% of AUM)

As of Thursday, shares of Graphic Packaging Holding Company were priced at $15.90, down 47% over the past year and well underperforming the S&P 500, which is up about 12.5% in the same period.

Company Overview

Company Snapshot

• GPK provides fiber-based packaging solutions, including coated paperboard, folding cartons, cups, lids, and barrier packaging products for food, beverage, and consumer goods industries.
• The company generates revenue primarily through the manufacture and sale of paperboard and packaging products, as well as the design and servicing of specialized packaging machinery.
• Its main customers include consumer packaged goods companies, quick-service restaurants, foodservice providers, and packaging converters in the Americas, Europe, and Asia Pacific.

Graphic Packaging Holding Company is a leading provider of fiber-based packaging solutions with a global footprint and a diverse portfolio of products tailored to the food, beverage, and consumer goods sectors. The company's integrated business model leverages vertical operations across paperboard mills and packaging manufacturing, enabling cost efficiencies and product innovation.

With a focus on sustainability and advanced barrier technologies, Graphic Packaging maintains a competitive edge by addressing evolving customer needs for environmentally responsible and high-performance packaging.

Foolish Take

Atlantic's move seemingly signals an opportunistic bet on a business whose fundamentals remain intact despite a bruising share-price decline. Graphic Packaging’s sharp selloff over the past year contrasts with steady execution underneath the hood, including continued innovation-driven sales wins and meaningful progress on long-term capacity expansion. For a value-focused fund, an entry point after a 47% slide could represent an attractive setup—especially as the company completes its multiyear transformation and shifts toward cash returns and balance-sheet improvement.

The company’s latest earnings show both pressure and resilience. Third-quarter net sales dipped 1% to $2.2 billion, while adjusted EBITDA fell to $383 million from $433 million a year earlier, driven by weaker Americas volume and inflationary costs. Yet management highlighted strong innovation traction and early production ahead of schedule at its new Waco recycled paperboard facility—positioned to become the world’s most efficient producer once fully ramped. The company also returned $39 million to shareholders through buybacks in the quarter and has reduced its net share count by 2.3% year-to-date.

For investors, the key takeaway is whether margin recovery and cash generation in 2026 can offset near-term softness. If execution continues and leverage begins to come down, today’s valuation may ultimately look too pessimistic.

Glossary

13F reportable assets under management (AUM): The total value of securities a fund must disclose in quarterly SEC filings.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or investment held in a company by an individual or institution.
Top holdings: The largest investments in a fund’s portfolio, typically by market value or percentage of assets.
Filing date: The official date a document or report is submitted to a regulatory authority, such as the SEC.
Portfolio: The collection of investments owned by an individual or institution.
Barrier packaging: Packaging designed to protect contents from moisture, oxygen, or contaminants, extending shelf life.
Vertical operations: A business structure where a company controls multiple stages of its production or supply chain.
Consumer packaged goods (CPG): Products sold quickly and at relatively low cost, such as food, beverages, and household items.
Quick-service restaurants: Establishments offering fast food with minimal table service, often called fast-food restaurants.
Packaging converters: Companies that transform raw packaging materials into finished packaging products for end users.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aptiv and Chart Industries. The Motley Fool has a disclosure policy.