Heartland Advisors Inc. Buys 5,660 Shares of Packaging Corporation of America $PKG

Key Points

• Heartland Advisors increased its stake in Packaging Corporation of America by 14.5% in Q1, buying 5,660 additional shares and bringing its total holding to 44,805 shares worth about $9.5 million.
• The company recently reported better-than-expected earnings, with Q1 EPS of $2.40 topping estimates, though revenue of $2.37 billion came in slightly below forecasts.
• Packaging Corporation of America also raised its quarterly dividend to $1.50 per share, and analysts remain broadly positive with a consensus rating of Moderate Buy and an average target price of $256.14.

Heartland Advisors Inc. grew its stake in Packaging Corporation of America (NYSE:PKG - Free Report) by 14.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 44,805 shares of the industrial products company's stock after buying an additional 5,660 shares during the period. Heartland Advisors Inc. owned 0.05% of Packaging Corporation of America worth $9,509,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. GRIMES & Co WEALTH MANAGEMENT LLC bought a new position in Packaging Corporation of America during the 4th quarter worth approximately $4,664,000. PNC Financial Services Group Inc. boosted its stake in shares of Packaging Corporation of America by 10.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 68,314 shares of the industrial products company's stock valued at $14,088,000 after purchasing an additional 6,257 shares during the last quarter. Victory Capital Management Inc. increased its position in shares of Packaging Corporation of America by 29.2% during the fourth quarter. Victory Capital Management Inc. now owns 2,309,412 shares of the industrial products company's stock worth $476,270,000 after buying an additional 521,352 shares during the period. Adams Natural Resources Fund Inc. increased its position in shares of Packaging Corporation of America by 71.6% during the first quarter. Adams Natural Resources Fund Inc. now owns 12,700 shares of the industrial products company's stock worth $2,695,000 after buying an additional 5,300 shares during the period. Finally, G&S Capital LLC raised its stake in Packaging Corporation of America by 110.1% during the fourth quarter. G&S Capital LLC now owns 12,886 shares of the industrial products company's stock worth $2,657,000 after buying an additional 6,753 shares during the last quarter. Institutional investors and hedge funds own 89.78% of the company's stock.

Packaging Corporation of America Stock Down 0.4%

Packaging Corporation of America stock opened at $233.11 on Friday. The company has a market capitalization of $20.77 billion, a PE ratio of 28.36, a PEG ratio of 2.17 and a beta of 0.80. Packaging Corporation of America has a 12-month low of $189.03 and a 12-month high of $249.51. The firm's fifty day moving average is $225.84 and its 200 day moving average is $221.78. The company has a quick ratio of 1.88, a current ratio of 3.07 and a debt-to-equity ratio of 0.87.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 EPS for the quarter, topping analysts' consensus estimates 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 business had revenue of $2.37 billion during the quarter, compared to analysts' expectations of $2.45 billion. During the same period last year, the company posted $2.31 earnings per share. The business's quarterly 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. As a group, sell-side analysts predict that Packaging Corporation of America will post 10.46 EPS for the current fiscal year.

Packaging Corporation of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were paid a $1.50 dividend. The ex-dividend date was Monday, June 15th. This represents a $6.00 annualized dividend and a dividend yield of 2.6%. This is a boost from Packaging Corporation of America's previous quarterly dividend of $1.25. Packaging Corporation of America's dividend payout ratio (DPR) is 72.99%.

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 value of $2,011,463.28. Following the completion of the sale, the chief executive officer directly owned 473,610 shares of the company's stock, valued at $102,811,258.80. The trade was a 1.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.60% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms recently issued reports on PKG. UBS Group upgraded shares of Packaging Corporation of America from a "neutral" rating to a "buy" rating and boosted their target price for the company from $232.00 to $248.00 in a report on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft raised Packaging Corporation of America from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $225.00 to $256.00 in a research report on Monday, May 4th. Truist Financial boosted their price objective on Packaging Corporation of America from $258.00 to $270.00 and gave the company a "buy" rating in a research note on Wednesday. Weiss Ratings lowered Packaging Corporation of America from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, May 26th. Finally, JPMorgan Chase & Co. upped their target price on Packaging Corporation of America from $246.00 to $269.00 and gave the company an "overweight" rating in a research report on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $256.14.

About Packaging Corporation of America

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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