Packaging Corporation of America (NYSE:PKG) Releases Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Packaging Corporation of America beat earnings expectations, reporting quarterly EPS of $3.04 versus the $2.93 consensus estimate. The company posted an 18.94% return on equity and a 7.25% net margin.
• PKG shares traded around $239, with a $21.3 billion market capitalization and a 52-week range of $191.50 to $259.98. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $271.86.
• The company paid a quarterly dividend of $1.50, equivalent to $6.00 annually and a 2.5% yield. Meanwhile, insiders sold 40,391 shares worth approximately $10.2 million over the past 90 days.

Packaging Corporation of America (NYSE:PKG - Get Free Report) posted its earnings results on Wednesday. The industrial products company reported $3.04 EPS for the quarter, beating the consensus estimate of $2.93 by $0.11, Zacks reports. Packaging Corporation of America had a return on equity of 18.94% and a net margin of 7.25%.

Packaging Corporation of America Stock Performance

Shares of Packaging Corporation of America stock traded up $0.14 on Wednesday, hitting $239.06. The stock had a trading volume of 810,101 shares, compared to its average volume of 802,290. The stock has a market cap of $21.30 billion, a price-to-earnings ratio of 31.05, a P/E/G ratio of 2.03 and a beta of 0.75. The company has a current ratio of 2.94, a quick ratio of 1.86 and a debt-to-equity ratio of 0.85. Packaging Corporation of America has a 52-week low of $191.50 and a 52-week high of $259.98. The company's 50 day moving average price is $237.69 and its 200 day moving average price is $230.24.

Packaging Corporation of America Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th were issued a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Tuesday, September 15th. Packaging Corporation of America's payout ratio is presently 77.92%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on PKG. Wells Fargo & Company decreased their price target on Packaging Corporation of America from $246.00 to $245.00 and set an "equal weight" rating for the company in a report on Wednesday, October 7th. Truist Financial increased their price objective on Packaging Corporation of America from $270.00 to $280.00 and gave the company a "buy" rating in a report on Monday, October 12th. Weiss Ratings raised Packaging Corporation of America from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 25th. JPMorgan Chase & Co. raised their target price 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. Finally, UBS Group decreased their target price 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. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $271.86.

Insider Buying and Selling

In other Packaging Corporation of America news, VP Donald Shirley sold 12,000 shares of Packaging Corporation of America 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 transaction, the vice president owned 19,110 shares of the company's stock, 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 filing with the SEC, which is available at this hyperlink. Also, President Thomas Hassfurther sold 12,531 shares of Packaging Corporation of America stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $250.00, for a total value of $3,132,750.00. Following the transaction, the president directly owned 218,751 shares in the company, valued at approximately $54,687,750. This trade represents a 5.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 40,391 shares of company stock worth $10,196,101 in the last 90 days. 1.60% of the stock is currently owned by company insiders.

About Packaging Corporation of America

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.