Packaging Corporation of America (NYSE:PKG) Price Target Raised to $322.00

Packaging Corporation of America (NYSE:PKG) had its target price upped by JPMorgan Chase & Co. from $320.00 to $322.00 in a report released on Friday,Benzinga reports. The firm currently has an overweight rating on the industrial products company’s stock.

A number of other research analysts also recently issued reports on the company. Wells Fargo & Company cut their price objective on Packaging Corporation of America from $246.00 to $245.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 7th. UBS Group decreased their target price on shares of Packaging Corporation of America from $292.00 to $289.00 and set a “buy” rating on the stock in a research note on Monday, October 5th. Weiss Ratings upgraded shares of Packaging Corporation of America from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, August 25th. Bank of America lowered their price target on shares of Packaging Corporation of America from $280.00 to $260.00 and set a “buy” rating on the stock in a report on Friday, September 11th. Finally, Truist Financial upped their price target on shares of Packaging Corporation of America from $270.00 to $280.00 and gave the stock a “buy” rating in a research report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $274.14.

Packaging Corporation of America Price Performance

NYSE PKG opened at $247.46 on Friday. The business’s fifty day moving average is $237.01 and its 200 day moving average is $231.08. Packaging Corporation of America has a fifty-two week low of $191.50 and a fifty-two week high of $259.98. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.86 and a current ratio of 2.94. The company has a market capitalization of $22.05 billion, a PE ratio of 30.47, a price-to-earnings-growth ratio of 1.98 and a beta of 0.75.

Packaging Corporation of America (NYSE:PKG) last issued its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $3.04 EPS for the quarter, topping analysts’ consensus estimates of $2.93 by $0.11. The business had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.61 billion. Packaging Corporation of America had a return on equity of 19.63% and a net margin of 7.40%. The business’s quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.73 earnings per share. Sell-side analysts predict that Packaging Corporation of America will post 10.48 earnings per share for the current year.

Packaging Corporation of America Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th were issued a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, September 15th. Packaging Corporation of America’s payout ratio is 73.89%.

Insiders Place Their Bets

In related news, VP Donald Shirley sold 12,000 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $250.71, for a total transaction of $3,008,520.00. Following the completion of the transaction, the vice president owned 19,110 shares in the company, valued at approximately $4,791,068.10. This represents a 38.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, President Thomas Hassfurther sold 12,531 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $250.00, for a total transaction of $3,132,750.00. Following the transaction, the president directly owned 218,751 shares of the company’s stock, valued at $54,687,750. The trade was a 5.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 40,391 shares of company stock valued at $10,196,101. 1.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in PKG. Fiduciary Financial Advisors bought a new stake in shares of Packaging Corporation of America in the second quarter worth about $36,000. Keating Financial Advisory Services Inc. purchased a new stake in shares of Packaging Corporation of America in the second quarter worth about $41,000. Oslo Pensjonsforsikring AS purchased a new stake in shares of Packaging Corporation of America in the first quarter worth about $41,000. Cedar Mountain Advisors LLC boosted its stake in Packaging Corporation of America by 2,300.0% during the first quarter. Cedar Mountain Advisors LLC now owns 216 shares of the industrial products company’s stock valued at $46,000 after buying an additional 207 shares during the last quarter. Finally, Danske Bank A S bought a new position in Packaging Corporation of America during the second quarter valued at approximately $58,000. Institutional investors own 89.78% of the company’s stock.

Key Stories Impacting Packaging Corporation of America

Here are the key news stories impacting Packaging Corporation of America this week:

• Positive Sentiment: PKG reported third-quarter EPS of $3.04, ahead of the $2.93 consensus, while revenue rose 12.5% year over year to approximately $2.60 billion. Favorable pricing and product mix, higher box shipments and contributions from the Greif operations helped drive the earnings beat. Packaging Corp Q3 Earnings Beat Estimates on Favorable Price & Mix
• Positive Sentiment: The company guided to fourth-quarter EPS of $2.81, modestly above the $2.78 analyst consensus. Price increases, shipment growth and continued cost discipline are supporting expectations for profitable growth. Packaging Corporation of America Signals Profitable Growth
• Positive Sentiment: Analysts raised their targets while maintaining favorable ratings: Truist reaffirmed “buy” and increased its target to $294 from $280, JPMorgan raised its target to $322 from $320 with an “overweight” rating, and Deutsche Bank lifted its target to $298 from $270 while maintaining “buy.”
• Neutral Sentiment: PKG’s acquisition of Greif’s corrugated packaging operations is increasing shipments and earnings, but investors will continue to monitor integration progress and the durability of those benefits.
• Negative Sentiment: Freight and other cost pressures, along with planned maintenance outages, are expected to partially offset pricing and volume gains in the fourth quarter. A valuation-focused analysis also cautions that PKG’s strong operating performance may already be reflected in its share price. Packaging Corporation of America: A Good Company Isn’t Always A Good Stock

Packaging Corporation of America Company Profile

Packaging Corporation of America (NYSE:PKG) is a manufacturer of corrugated packaging and containerboard products serving businesses primarily in the United States. Its products include shipping boxes, retail packaging, displays, protective packaging and specialty corrugated solutions used to transport and present a broad range of consumer and industrial goods.

The company also produces uncoated freesheet paper and related paper products for commercial printing, office use, publishing, converting and other applications.