Packaging Corp Of America (PKG) Upgraded by Zacks Investment Research to “Hold”
Zacks Investment Research upgraded shares of Packaging Corp Of America (NYSE:PKG) from a sell rating to a hold rating in a research report sent to investors on Tuesday.
According to Zacks, “Packaging Corporation’s fourth-quarter 2017 earnings will bear the impact of elevated annual outage costs. Escalating wood and energy costs, higher prices for certain key chemicals and rising freight costs also remain headwinds. Further, the fourth quarter will witness seasonally lower volumes as well as a seasonally less rich mix in corrugated products. However, Packaging Corporation expects packaging segment demand to remain strong in the fourth-quarter compared to the third quarter of 2017. The company will also gain from the Sacramento Container acquisition. Growth in the e-commerce and progress in DeRidder mill will also drive growth. Moreover, Packaging Corporation outperformed the industry it belongs to over the past year.”
A number of other equities analysts have also recently commented on PKG. Deutsche Bank reiterated a hold rating and issued a $120.00 target price (up previously from $94.00) on shares of Packaging Corp Of America in a research report on Monday, October 9th. KeyCorp reiterated a hold rating on shares of Packaging Corp Of America in a research report on Thursday, October 12th. Stephens initiated coverage on shares of Packaging Corp Of America in a research report on Tuesday, October 24th. They issued an overweight rating and a $130.00 target price on the stock. Barclays lifted their target price on shares of Packaging Corp Of America from $108.00 to $110.00 and gave the stock an equal weight rating in a research report on Monday, October 30th. Finally, ValuEngine upgraded shares of Packaging Corp Of America from a hold rating to a buy rating in a research report on Sunday, December 31st. Eight equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $118.42.
Packaging Corp Of America (NYSE:PKG) last issued its earnings results on Wednesday, October 25th. The industrial products company reported $1.68 EPS for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.01). The business had revenue of $1.64 billion during the quarter, compared to analysts’ expectations of $1.64 billion. Packaging Corp Of America had a return on equity of 29.38% and a net margin of 8.18%. Packaging Corp Of America’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.30 EPS. equities research analysts predict that Packaging Corp Of America will post 5.99 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, January 12th. Shareholders of record on Tuesday, December 26th will be issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 1.97%. The ex-dividend date is Friday, December 22nd. Packaging Corp Of America’s dividend payout ratio (DPR) is presently 46.67%.
In other Packaging Corp Of America news, SVP Charles J. Carter sold 6,150 shares of the firm’s stock in a transaction on Friday, October 27th. The shares were sold at an average price of $117.04, for a total value of $719,796.00. Following the sale, the senior vice president now owns 24,265 shares of the company’s stock, valued at approximately $2,839,975.60. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Thomas W.H. Walton sold 6,027 shares of the firm’s stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $116.15, for a total transaction of $700,036.05. Following the completion of the sale, the senior vice president now directly owns 32,690 shares in the company, valued at approximately $3,796,943.50. The disclosure for this sale can be found here. In the last three months, insiders sold 67,177 shares of company stock worth $1,427,532. Insiders own 1.20% of the company’s stock.
Institutional investors have recently made changes to their positions in the business. Toronto Dominion Bank grew its holdings in Packaging Corp Of America by 12.4% in the 2nd quarter. Toronto Dominion Bank now owns 1,158 shares of the industrial products company’s stock worth $129,000 after acquiring an additional 128 shares during the last quarter. Advantage Investment Management LLC bought a new stake in shares of Packaging Corp Of America during the 3rd quarter valued at about $137,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Packaging Corp Of America by 84.6% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,451 shares of the industrial products company’s stock valued at $161,000 after purchasing an additional 665 shares in the last quarter. Perpetual Ltd bought a new stake in shares of Packaging Corp Of America during the 2nd quarter valued at about $201,000. Finally, Simmons Bank bought a new stake in shares of Packaging Corp Of America during the 2nd quarter valued at about $211,000. 89.96% of the stock is currently owned by institutional investors and hedge funds.
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About Packaging Corp Of America
Packaging Corporation of America (PCA) is a producer of containerboard products and uncoated freesheet. The Company operates through three segments: Packaging, Paper, and Corporate and Other. The Packaging segment produces a range of corrugated packaging products. The Paper segment manufactures and sells a range of papers, including communication-based papers and pressure sensitive papers.
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