Packaging Corporation of America’s (PKG) “Buy” Rating Reiterated at Truist Financial

Truist Financial reissued their buy rating on shares of Packaging Corporation of America (NYSE:PKG) in a research report report published on Friday,Benzinga reports. Truist Financial currently has a $294.00 price objective on the industrial products company’s stock, up from their prior price objective of $280.00.

PKG has been the topic of a number of other reports. Citigroup dropped their target price on shares of Packaging Corporation of America from $254.00 to $253.00 and set a “neutral” rating on the stock in a report on Friday, October 2nd. Weiss Ratings upgraded Packaging Corporation of America from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 25th. Wells Fargo & Company reduced their price target on Packaging Corporation of America from $246.00 to $245.00 and set an “equal weight” rating for the company in a report on Wednesday, October 7th. JPMorgan Chase & Co. boosted their price target on Packaging Corporation of America from $320.00 to $322.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Bank of America dropped their price objective on Packaging Corporation of America from $280.00 to $260.00 and set a “buy” rating on the stock in a research note on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $274.14.

Packaging Corporation of America Price Performance

Shares of PKG opened at $247.46 on Friday. The company has a current ratio of 2.94, a quick ratio of 1.86 and a debt-to-equity ratio of 0.85. The company’s fifty day simple moving average is $237.01 and its 200 day simple moving average is $231.08. Packaging Corporation of America has a 1-year low of $191.50 and a 1-year high of $259.98. The company has a market cap of $22.05 billion, a price-to-earnings ratio of 30.47, a PEG ratio of 1.98 and a beta of 0.75.

Packaging Corporation of America (NYSE:PKG) last announced its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $3.04 EPS for the quarter, beating analysts’ consensus estimates of $2.93 by $0.11. Packaging Corporation of America had a net margin of 7.40% and a return on equity of 19.63%. The firm had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.61 billion. During the same quarter last year, the company posted $2.73 earnings per share. The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. On average, research analysts forecast that Packaging Corporation of America will post 10.48 earnings per share for the current fiscal year.

Packaging Corporation of America Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th were issued a dividend of $1.50 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $6.00 annualized dividend and a yield of 2.4%. Packaging Corporation of America’s dividend payout ratio (DPR) is currently 73.89%.

Insiders Place Their Bets

In other news, President Thomas A. Hassfurther sold 12,531 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $250.00, for a total value 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. This represents a 5.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Donald R. Shirley sold 12,000 shares of the stock in a transaction dated 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 directly owned 19,110 shares in the company, valued at $4,791,068.10. The trade was a 38.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 40,391 shares of company stock valued at $10,196,101. Company insiders own 1.60% of the company’s stock.

Institutional Trading of Packaging Corporation of America

Hedge funds have recently modified their holdings of the stock. Fiduciary Financial Advisors bought a new stake in shares of Packaging Corporation of America during the 2nd quarter worth about $36,000. Oslo Pensjonsforsikring AS acquired a new position in Packaging Corporation of America in the 1st quarter valued at about $41,000. Keating Financial Advisory Services Inc. bought a new position in Packaging Corporation of America in the 2nd quarter valued at about $41,000. Cedar Mountain Advisors LLC raised its holdings in Packaging Corporation of America by 2,300.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 216 shares of the industrial products company’s stock valued at $46,000 after acquiring an additional 207 shares during the period. Finally, Danske Bank A S bought a new position in Packaging Corporation of America in the 2nd quarter valued at about $58,000. Institutional investors and hedge funds own 89.78% of the company’s stock.

Packaging Corporation of America News Summary

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

About Packaging Corporation of America

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.