Citigroup Issues Pessimistic Forecast for Packaging Corporation of America (NYSE:PKG) Stock Price

Key Points

• Citigroup lowered its price target for Packaging Corporation of America from $254 to $253 while maintaining a neutral rating, implying roughly 10.35% upside from the prior close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $271, despite differing views from major brokerages.
• PKG shares fell 0.2% to $229.27; the company recently beat quarterly EPS estimates, reporting $2.35 versus the $2.31 consensus, while revenue rose 14.7% year over year.

Packaging Corporation of America (NYSE:PKG - Get Free Report) had its price target cut by equities research analysts at Citigroup from $254.00 to $253.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the industrial products company's stock. Citigroup's target price would suggest a potential upside of 10.35% from the stock's previous close.

Other research analysts have also issued reports about the company. JPMorgan Chase & Co. raised their price target on Packaging Corporation of America from $312.00 to $320.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 23rd. Truist Financial increased their target price on Packaging Corporation of America from $258.00 to $270.00 and gave the company a "buy" rating in a research note on Wednesday, July 15th. 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 restated an "equal weight" rating and set a $246.00 target price (up from $245.00) on shares of Packaging Corporation of America in a report on Thursday, July 9th. Finally, Bank of America decreased their target price on 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 analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $271.00.

Packaging Corporation of America Trading Down 0.2%

Shares of PKG traded down $0.44 on Friday, reaching $229.27. 247,916 shares of the company's stock were exchanged, compared to its average volume of 815,347. 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 stock has a market capitalization of $20.43 billion, a P/E ratio of 29.77, a price-to-earnings-growth ratio of 1.97 and a beta of 0.75. The business has a 50 day moving average price of $243.23 and a two-hundred day moving average price of $228.35. Packaging Corporation of America has a 12 month low of $191.50 and a 12 month high of $259.98.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The industrial products company reported $2.35 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.04. Packaging Corporation of America had a net margin of 7.25% and a return on equity of 18.94%. The business had revenue of $2.49 billion for the quarter, compared to analyst estimates of $2.49 billion. During the same period in the prior year, the business posted $2.48 earnings per share. Packaging Corporation of America's revenue was up 14.7% compared to the same quarter last year. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. Research analysts anticipate that Packaging Corporation of America will post 10.45 earnings per share for the current year.

Insider Activity at Packaging Corporation of America

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

Institutional Investors Weigh In On Packaging Corporation of America

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Packaging Corporation of America in the second quarter valued at about $1,837,506,000. Bank of New York Mellon Corp bought a new position in shares of Packaging Corporation of America during the second quarter worth about $748,095,000. Bank of America Corp DE bought a new position in shares of Packaging Corporation of America during the second quarter worth about $379,568,000. Atlas FRM LLC acquired a new stake in Packaging Corporation of America in the 2nd quarter valued at approximately $365,164,100. Finally, Diamant Asset Management Inc. raised its position in Packaging Corporation of America by 19,710.3% in the 1st quarter. Diamant Asset Management Inc. now owns 893,446 shares of the industrial products company's stock valued at $189,607,000 after buying an additional 888,936 shares during the last quarter. 89.78% of the stock is owned by institutional investors.

About Packaging Corporation of America

Packaging Corporation of America NYSE: PKG is a manufacturer of containerboard and corrugated packaging products in the United States. The company produces linerboard, corrugating medium and finished corrugated containers used to package and transport consumer, industrial, food and agricultural products.

PCA also manufactures specialty packaging products, including retail displays, protective packaging and custom-designed corrugated solutions. Through its Paper segment, the company produces and sells uncoated freesheet paper and related specialty papers for commercial printing, office use, converting and other applications.

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