Bank of Nova Scotia Makes New Investment in Packaging Corporation of America $PKG

Key Points

• Bank of Nova Scotia acquired 26,713 shares of Packaging Corporation of America in the second quarter, valued at approximately $6.4 million. Several other funds also initiated positions, while institutional investors collectively own 89.78% of the company.
• Company insiders sold 40,391 shares worth about $10.2 million over the past 90 days, including substantial sales by the president and a vice president.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $264.57. PCA recently beat quarterly EPS estimates, reporting $2.35 versus $2.31 expected, while revenue rose 14.7% year over year.

Bank of Nova Scotia acquired a new stake in Packaging Corporation of America (NYSE:PKG - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 26,713 shares of the industrial products company's stock, valued at approximately $6,365,000.

A number of other hedge funds have also recently modified their holdings of the stock. Daiichi Life Insurance Co. Ltd. acquired a new position in Packaging Corporation of America in the second quarter valued at approximately $3,426,000. Commerce Bank acquired a new stake in shares of Packaging Corporation of America during the 2nd quarter worth approximately $15,921,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Packaging Corporation of America during the 2nd quarter worth approximately $584,000. Quantbot Technologies LP purchased a new position in shares of Packaging Corporation of America during the 2nd quarter valued at approximately $819,000. Finally, Emerald Investment Advisers LLC purchased a new position in shares of Packaging Corporation of America during the 2nd quarter valued at approximately $5,180,000. Hedge funds and other institutional investors own 89.78% of the company's stock.

Insider Activity

In related news, President Thomas A. Hassfurther sold 12,531 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were 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 of the company's stock, valued at approximately $54,687,750. This trade represents a 5.42% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Donald R. Shirley sold 12,000 shares of the firm's 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 transaction, the vice president directly owned 19,110 shares in the company, valued at $4,791,068.10. This represents a 38.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 40,391 shares of company stock valued at $10,196,101. Insiders own 1.60% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PKG. JPMorgan Chase & Co. increased their price target on shares of Packaging Corporation of America from $269.00 to $271.00 and gave the stock an "overweight" rating in a report on Friday, July 24th. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $246.00 price objective (up from $245.00) on shares of Packaging Corporation of America in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft raised shares of Packaging Corporation of America from a "hold" rating to a "buy" rating and lifted their price objective for the company from $225.00 to $256.00 in a report on Monday, May 4th. Bank of America increased their target price on shares of Packaging Corporation of America from $242.00 to $263.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Finally, Citigroup raised their target price on Packaging Corporation of America from $241.00 to $254.00 and gave the company a "neutral" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $264.57.

Packaging Corporation of America Price Performance

Packaging Corporation of America stock opened at $246.60 on Wednesday. The company's fifty day moving average price is $241.76 and its 200 day moving average price is $227.83. Packaging Corporation of America has a 1 year low of $191.50 and a 1 year high of $259.98. The stock has a market capitalization of $21.97 billion, a P/E ratio of 32.03, a P/E/G ratio of 2.35 and a beta of 0.80. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.86 and a current ratio of 2.94.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The industrial products company reported $2.35 earnings per share for the quarter, topping 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 company had revenue of $2.49 billion during the quarter, compared to analysts' expectations of $2.49 billion. During the same period in the prior year, the business posted $2.48 earnings per share. The firm's revenue for the quarter 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. As a group, equities research analysts anticipate that Packaging Corporation of America will post 10.48 earnings per share for the current fiscal year.

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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