Adams Natural Resources Fund Inc. Buys 5,300 Shares of Packaging Corporation of America $PKG

Key Points

• Adams Natural Resources Fund increased its stake in Packaging Corporation of America by 71.6% in the first quarter, buying 5,300 more shares and bringing its total holding to 12,700 shares worth about $2.7 million.
• Packaging Corporation of America reported stronger-than-expected quarterly earnings of $2.40 per share, though revenue of $2.37 billion came in below analyst estimates.
• The company raised its quarterly dividend to $1.50 per share from $1.25, while analysts currently rate the stock a Moderate Buy with a consensus target price of $241.83.

Adams Natural Resources Fund Inc. boosted its stake in Packaging Corporation of America (NYSE:PKG - Free Report) by 71.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 12,700 shares of the industrial products company's stock after purchasing an additional 5,300 shares during the quarter. Adams Natural Resources Fund Inc.'s holdings in Packaging Corporation of America were worth $2,695,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Packaging Corporation of America by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,279,442 shares of the industrial products company's stock valued at $2,326,159,000 after purchasing an additional 51,790 shares during the last quarter. State Street Corp raised its holdings in shares of Packaging Corporation of America by 1.3% during the 4th quarter. State Street Corp now owns 4,185,761 shares of the industrial products company's stock valued at $868,349,000 after buying an additional 54,884 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in Packaging Corporation of America by 2.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,478,505 shares of the industrial products company's stock worth $717,372,000 after buying an additional 83,978 shares during the last quarter. JPMorgan Chase & Co. lifted its position in 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. Finally, Price T Rowe Associates Inc. MD boosted its stake in Packaging Corporation of America by 2.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,816,736 shares of the industrial products company's stock worth $580,897,000 after buying an additional 73,047 shares in the last quarter. 89.78% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Packaging Corporation of America

In related news, CEO Mark W. Kowlzan sold 9,266 shares of the business's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $217.08, for a total transaction of $2,011,463.28. Following the transaction, the chief executive officer owned 473,610 shares in the company, valued at $102,811,258.80. The trade was a 1.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.60% of the company's stock.

Packaging Corporation of America Stock Performance

Shares of PKG stock opened at $241.63 on Friday. The company has a market capitalization of $21.53 billion, a P/E ratio of 29.40, a PEG ratio of 2.25 and a beta of 0.81. Packaging Corporation of America has a fifty-two week low of $187.41 and a fifty-two week high of $249.51. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.88 and a current ratio of 3.07. The stock has a 50 day moving average price of $221.02 and a two-hundred day moving average price of $218.81.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.17 by $0.23. Packaging Corporation of America had a net margin of 8.04% and a return on equity of 19.27%. The firm had revenue of $2.37 billion for the quarter, compared to analysts' expectations of $2.45 billion. During the same quarter last year, the business earned $2.31 earnings per share. The business's revenue was up 10.6% on a year-over-year basis. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. Analysts expect that Packaging Corporation of America will post 10.45 earnings per share for the current year.

Packaging Corporation of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be given a $1.50 dividend. The ex-dividend date is Monday, June 15th. This is a positive change from Packaging Corporation of America's previous quarterly dividend of $1.25. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.5%. Packaging Corporation of America's dividend payout ratio is presently 72.99%.

Wall Street Analyst Weigh In

PKG has been the topic of a number of recent research reports. UBS Group upgraded shares of Packaging Corporation of America from a "neutral" rating to a "buy" rating and increased their price target for the company from $232.00 to $248.00 in a research report on Wednesday, May 20th. Truist Financial restated a "buy" rating and issued a $258.00 price objective (down from $260.00) on shares of Packaging Corporation of America in a report on Monday, April 27th. Deutsche Bank Aktiengesellschaft raised shares of Packaging Corporation of America from a "hold" rating to a "buy" rating and upped their price objective for the company from $225.00 to $256.00 in a research note on Monday, May 4th. Citigroup reduced their target price on shares of Packaging Corporation of America from $227.00 to $217.00 and set a "neutral" rating on the stock in a report on Tuesday, April 14th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Packaging Corporation of America from $225.00 to $246.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Packaging Corporation of America currently has a consensus rating of "Moderate Buy" and a consensus target price of $241.83.

Packaging Corporation of America Company Profile

Packaging Corporation of America NYSE: PKG is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.

Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.

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