Packaging Corporation of America (NYSE:PKG) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Packaging Corporation of America (NYSE: PKG) from “hold” to “buy.” Overall, analysts rate the stock “Moderate Buy,” with an average price target of $275.43.
• Analyst views were mixed on price targets: Truist raised its target to $294 and JPMorgan to $322, while Bank of America cut its target to $260.
• The company’s latest quarterly EPS of $3.04 beat estimates of $2.93, while revenue of $2.60 billion was slightly below expectations; revenue increased 12.5% year over year.

Packaging Corporation of America (NYSE:PKG - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other brokerages have also weighed in on PKG. Truist Financial reaffirmed a "buy" rating and issued a $294.00 price target (up from $280.00) on shares of Packaging Corporation of America in a research note on Friday, October 23rd. Bank of America lowered their price objective 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. JPMorgan Chase & Co. lifted their price objective on Packaging Corporation of America from $320.00 to $322.00 and gave the stock an "overweight" rating in a report on Friday, October 23rd. UBS Group lowered their price objective on Packaging Corporation of America from $292.00 to $289.00 and set a "buy" rating for the company in a research note on Monday, October 5th. Finally, Weiss Ratings upgraded Packaging Corporation of America from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $275.43.

Packaging Corporation of America Stock Performance

PKG opened at $249.51 on Friday. The business's 50-day simple moving average is $238.15 and its 200 day simple moving average is $230.33. Packaging Corporation of America has a 52-week low of $191.50 and a 52-week high of $262.59. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.86 and a current ratio of 2.94. The firm has a market capitalization of $22.23 billion, a PE ratio of 30.73, a PEG ratio of 1.95 and a beta of 0.76.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last posted its earnings results on Wednesday, October 21st. The industrial products company reported $3.04 earnings per share for the quarter, topping analysts' consensus estimates of $2.93 by $0.11. The business had revenue of $2.60 billion for the quarter, compared to analyst estimates of $2.61 billion. Packaging Corporation of America had a net margin of 7.40% and a return on equity of 19.63%. Packaging Corporation of America's revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.73 EPS. As a group, sell-side analysts expect that Packaging Corporation of America will post 10.56 earnings per share for the current fiscal year.

Insider Activity

In related news, VP Donald Shirley sold 12,000 shares of Packaging Corporation of America stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $250.71, for a total value of $3,008,520.00. Following the sale, the vice president 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Packaging Corporation of America

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in Packaging Corporation of America during the second quarter worth $1,837,506,000. Bank of New York Mellon Corp purchased a new position in Packaging Corporation of America in the 2nd quarter worth about $748,095,000. Royal Bank of Canada raised its stake in shares of Packaging Corporation of America by 25.2% in the 1st quarter. Royal Bank of Canada now owns 2,323,010 shares of the industrial products company's stock valued at $492,990,000 after acquiring an additional 467,590 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Packaging Corporation of America in the 2nd quarter worth about $379,568,000. Finally, Atlas FRM LLC acquired a new stake in shares of Packaging Corporation of America in the 2nd quarter valued at approximately $365,164,100. 89.78% of the stock is currently owned by hedge funds and other institutional investors.

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.

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