Packaging Corporation of America (NYSE:PKG) Sets New 1-Year High – Still a Buy?

Packaging Corporation of America (NYSE:PKG)’s share price hit a new 52-week high during trading on Monday. The stock traded as high as $260.00 and last traded at $258.0040, with a volume of 6,532 shares. The stock had previously closed at $256.82.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. JPMorgan Chase & Co. upped their price target on Packaging Corporation of America from $320.00 to $322.00 and gave the company an “overweight” rating in a report on Friday, October 23rd. Wells Fargo & Company reduced their target price 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. UBS Group cut their price objective on Packaging Corporation of America from $292.00 to $289.00 and set a “buy” rating on the stock in a report on Monday, October 5th. Weiss Ratings upgraded shares of Packaging Corporation of America from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, October 27th. Finally, Bank of America reduced their price target on shares of Packaging Corporation of America from $280.00 to $260.00 and set a “buy” rating for the company in a research report on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $275.43.

Packaging Corporation of America Stock Up 0.3%

The business has a 50 day simple moving average of $237.48 and a 200 day simple moving average of $229.47. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.94 and a quick ratio of 1.86. The stock has a market cap of $22.95 billion, a PE ratio of 31.72, a P/E/G ratio of 1.93 and a beta of 0.76.

Packaging Corporation of America (NYSE:PKG) last issued its quarterly earnings data on Wednesday, October 21st. The industrial products company reported $3.04 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $2.61 billion. During the same quarter last year, the firm earned $2.73 earnings per share. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. On average, equities research analysts forecast that Packaging Corporation of America will post 10.56 EPS for the current fiscal year.

Packaging Corporation of America Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th were issued a $1.50 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $6.00 dividend on an annualized basis and a yield of 2.3%. Packaging Corporation of America’s dividend payout ratio is 73.89%.

Insider Activity at Packaging Corporation of America

In other Packaging Corporation of America news, VP Donald R. Shirley sold 12,000 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $250.71, for a total value of $3,008,520.00. Following the transaction, the vice president directly owned 19,110 shares in the company, valued at approximately $4,791,068.10. This trade represents a 38.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Thomas A. Hassfurther sold 8,797 shares of the company’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $257.00, for a total transaction of $2,260,829.00. Following the sale, the president owned 209,954 shares of the company’s stock, valued at $53,958,178. The trade was a 4.02% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 27,860 shares of company stock valued at $7,063,351. Insiders own 1.60% of the company’s stock.

Institutional Trading of Packaging Corporation of America

Several hedge funds and other institutional investors have recently modified their holdings of PKG. Chicago Partners Investment Group LLC increased its holdings in Packaging Corporation of America by 15.8% during the third quarter. Chicago Partners Investment Group LLC now owns 1,827 shares of the industrial products company’s stock worth $452,000 after buying an additional 249 shares during the last quarter. Ascent Group LLC increased its stake in Packaging Corporation of America by 5.8% in the third quarter. Ascent Group LLC now owns 8,207 shares of the industrial products company’s stock valued at $1,882,000 after acquiring an additional 452 shares during the last quarter. Rakuten Investment Management Inc. boosted its stake in shares of Packaging Corporation of America by 9.8% in the 3rd quarter. Rakuten Investment Management Inc. now owns 15,930 shares of the industrial products company’s stock valued at $3,716,000 after purchasing an additional 1,419 shares in the last quarter. Provenance Wealth Advisors LLC raised its position in Packaging Corporation of America by 15.3% in the third quarter. Provenance Wealth Advisors LLC now owns 1,170 shares of the industrial products company’s stock valued at $268,000 after purchasing an additional 155 shares during the last quarter. Finally, Summit Wealth Group LLC Co. grew its stake in shares of Packaging Corporation of America by 7.4% in the third quarter. Summit Wealth Group LLC Co. now owns 2,283 shares of the industrial products company’s stock worth $523,000 after purchasing an additional 157 shares during the last quarter. Institutional investors and hedge funds own 89.78% of the company’s 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.