Packaging Corporation of America (NYSE:PKG) Stock Has Average Target Price of $271.14

Key Points

• Analyst sentiment is moderately bullish: Ten firms rate Packaging Corporation of America “Moderate Buy,” with six buys, one strong buy and three holds. The average 12-month price target is $271.14 versus the reported share price of $237.06.
• Recent financial results exceeded expectations: PCA reported quarterly EPS of $2.35, topping estimates by $0.04, while revenue rose 14.7% year over year to $2.49 billion.
• Investors receive a quarterly dividend: The company declared a $1.50-per-share dividend, equivalent to $6.00 annually and a 2.5% yield. Institutional investors own approximately 89.78% of the stock.

Shares of Packaging Corporation of America (NYSE:PKG - Get Free Report) have been given an average rating of "Moderate Buy" by the ten research firms that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $271.14.

A number of research analysts have recently issued reports on PKG shares. Bank of America reduced 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 report on Friday, September 11th. Weiss Ratings raised shares of Packaging Corporation of America from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 25th. Truist Financial lifted their price target 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. JPMorgan Chase & Co. boosted their price objective on Packaging Corporation of America from $312.00 to $320.00 and gave the stock an "overweight" rating in a report on Wednesday. Finally, Citigroup increased their price objective on Packaging Corporation of America from $241.00 to $254.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 28th.

Packaging Corporation of America Price Performance

Shares of PKG opened at $237.06 on Friday. The business's fifty day moving average is $243.04 and its 200 day moving average is $227.93. Packaging Corporation of America has a 12-month low of $191.50 and a 12-month high of $259.98. The company has a quick ratio of 1.86, a current ratio of 2.94 and a debt-to-equity ratio of 0.85. The stock has a market cap of $21.12 billion, a P/E ratio of 30.79, a P/E/G ratio of 2.03 and a beta of 0.78.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $2.35 EPS for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $2.49 billion. During the same quarter in the previous year, the business posted $2.48 EPS. Packaging Corporation of America's quarterly revenue was up 14.7% on a year-over-year basis. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. Sell-side analysts anticipate that Packaging Corporation of America will post 10.45 earnings per share for the current fiscal year.

Packaging Corporation of America Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be issued a dividend of $1.50 per share. The ex-dividend date is Tuesday, September 15th. This represents a $6.00 annualized dividend and a yield of 2.5%. Packaging Corporation of America's dividend payout ratio is 77.92%.

Insiders Place Their Bets

In other news, President Thomas A. Hassfurther sold 7,063 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $254.00, for a total value of $1,794,002.00. Following the completion of the sale, the president owned 202,891 shares in the company, valued at $51,534,314. This represents a 3.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Donald R. Shirley sold 12,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were 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 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. 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 three months. 1.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Packaging Corporation of America in the 2nd quarter valued at about $1,837,506,000. Bank of New York Mellon Corp purchased a new position in shares of Packaging Corporation of America in the 2nd quarter worth approximately $748,095,000. JPMorgan Chase & Co. boosted its stake in shares of Packaging Corporation of America by 7.5% in the 4th quarter. JPMorgan Chase & Co. now owns 3,316,670 shares of the industrial products company's stock worth $683,997,000 after buying an additional 231,474 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Packaging Corporation of America by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 2,420,383 shares of the industrial products company's stock valued at $497,283,000 after acquiring an additional 16,902 shares in the last quarter. Finally, Royal Bank of Canada grew its holdings in shares of Packaging Corporation of America by 25.2% in the first 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. 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 manufactures and sells containerboard and corrugated packaging products. Its offerings include shipping boxes, retail displays, protective packaging and other custom-designed packaging solutions used by businesses in a range of industries.

The company also produces uncoated paper products, including communication papers, office papers and specialty papers. PCA serves customers primarily across the United States and operates a network of paper mills, corrugated products plants, design centers and related facilities.

Packaging Corporation of America was established in 1999 following the acquisition of Tenneco Packaging by an investor group and its subsequent separation from Tenneco Inc Mark W.

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