Why Did SW, IP, PKG Stocks Slump Today?
Synopsis
JP Morgan stated in a note on Monday that the decline in U.S. linerboard prices is “negative” for the stocks.
- Industry tracker RISI reported a $20 per ton month-over-month decline in U.S. domestic containerboard prices.
- JPMorgan said that the decline is in contrast to the majority of U.S. corrugated producers, which announced a $70-per-ton price increase.
- The firm noted that the price decline was driven by sluggish demand, discounting, and increased imports of European containerboard.
Shares of box makers Smurfit Westrock PLC (SW), International Paper Co. (IP), and Packaging Corp Of America (PKG) slumped more than 7% on Monday after JP Morgan said the decline in U.S. linerboard prices is “negative” for the stocks.
After industry tracker RISI reported a $20 per ton month-over-month decline in U.S. domestic containerboard prices, JPMorgan said the “surprise” drop in linerboard pricing is a negative development for U.S. box makers, according to The Fly.
The firm said that it is in contrast to the majority of U.S. corrugated producers, which announced a $70-per-ton price increase and consensus expectations of $40-$50 per ton. The decline has been driven by sluggish demand, some discounting, and increased imports of European containerboard, JPMorgan added.
International Paper is a leading manufacturer of packaging products and cellulose fibers, reportedly controlling around one-third of the North American corrugated packaging market. The company also strengthened its European footprint through the acquisition of DS Smith last month.
Atlantic Investment Management Exits Graphic Packaging
Meanwhile, Atlantic Investment Management disclosed that it fully exited its position in Graphic Packaging Holding Company (GPK) in a transaction valued at around $12.63 million. GPK shares were down 5.5%.
According to a recent SEC filing, the fund sold its entire stake in the company during the fourth quarter of 2025, unloading all 645,584 shares it previously held.
How Did Stocktwits Users React?
Retail sentiment for IP, GPK, and PKG on Stocktwits was in the ‘bearish’ zone, while sentiment for SW remained in the ‘neutral’ territory.
Year-to-date, IP shares have gained around 11%, PKG shares around 6.5%, and SW shares just over 16%, while GPK shares have declined nearly 22%.
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