Zacks Investment Research cut shares of Packaging Corporation of America (NYSE:PKG) from a buy rating to a hold rating in a research note published on Monday.

According to Zacks, “Packaging Corporation’s top and bottom lines improved year over year in third-quarter 2017. Sales beat the Zacks Consensus Estimate, however earnings missed the Consensus mark. The company expects fourth-quarter earnings to be $1.50 per share which will be 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 fourth-quarter 2017 compared to the third quarter. The company will also gain from the Sacramento Container acquisition. Growth in the e-commerce and progress in DeRidder mill will also drive growth. Packaging Corporation outperformed the industry it belongs to over the past year.”

Several other research firms have also issued reports on PKG. Stephens began coverage on Packaging Corporation of America in a research report on Tuesday, October 24th. They set an overweight rating and a $130.00 price target on the stock. KeyCorp restated a hold rating on shares of Packaging Corporation of America in a research report on Sunday. Deutsche Bank AG restated a hold rating and set a $120.00 price target (up from $94.00) on shares of Packaging Corporation of America in a research report on Monday, October 9th. Jefferies Group LLC restated a buy rating and set a $128.00 price target (up from $114.00) on shares of Packaging Corporation of America in a research report on Friday, July 14th. Finally, BidaskClub lowered Packaging Corporation of America from a strong-buy rating to a buy rating in a research report on Wednesday, July 19th. Eight investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. The company currently has an average rating of Hold and a consensus price target of $117.36.

Packaging Corporation of America (NYSE:PKG) last posted its quarterly earnings results on Wednesday, October 25th. The industrial products company reported $1.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.69 by ($0.01). Packaging Corporation of America had a return on equity of 29.38% and a net margin of 8.18%. The company had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter in the previous year, the business earned $1.30 earnings per share. Packaging Corporation of America’s revenue was up 10.5% compared to the same quarter last year.

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The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 13th. Shareholders of record on Friday, September 15th were issued a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 2.17%. The ex-dividend date of this dividend was Thursday, September 14th. Packaging Corporation of America’s dividend payout ratio (DPR) is currently 46.67%.

In other news, SVP Charles J. Carter sold 6,150 shares of the firm’s stock in a transaction that occurred on Friday, October 27th. The stock was sold at an average price of $117.04, for a total value of $719,796.00. Following the completion of the transaction, the senior vice president now owns 24,265 shares in the company, valued at approximately $2,839,975.60. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Thomas A. Hassfurther sold 6,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 12th. The shares were sold at an average price of $117.94, for a total value of $707,640.00. Following the completion of the transaction, the vice president now owns 155,071 shares of the company’s stock, valued at approximately $18,289,073.74. The disclosure for this sale can be found here. Company insiders own 1.20% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of Packaging Corporation of America by 2.3% in the 2nd quarter. Vanguard Group Inc. now owns 8,430,256 shares of the industrial products company’s stock valued at $939,046,000 after purchasing an additional 191,348 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Packaging Corporation of America by 1.5% in the 2nd quarter. Bank of New York Mellon Corp now owns 4,097,547 shares of the industrial products company’s stock valued at $456,426,000 after purchasing an additional 62,507 shares during the period. State Street Corp lifted its stake in shares of Packaging Corporation of America by 1.0% in the 2nd quarter. State Street Corp now owns 3,336,381 shares of the industrial products company’s stock valued at $371,683,000 after purchasing an additional 31,624 shares during the period. Wells Fargo & Company MN lifted its stake in shares of Packaging Corporation of America by 4.1% in the 2nd quarter. Wells Fargo & Company MN now owns 2,459,871 shares of the industrial products company’s stock valued at $274,005,000 after purchasing an additional 96,282 shares during the period. Finally, First Eagle Investment Management LLC lifted its stake in shares of Packaging Corporation of America by 21.5% in the 2nd quarter. First Eagle Investment Management LLC now owns 1,780,644 shares of the industrial products company’s stock valued at $198,346,000 after purchasing an additional 315,684 shares during the period. Institutional investors own 88.42% of the company’s stock.

Packaging Corporation of America Company Profile

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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Analyst Recommendations for Packaging Corporation of America (NYSE:PKG)

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