Hsbc Holdings PLC Sells 38,330 Shares of Packaging Corporation of America $PKG

Key Points

• HSBC Holdings PLC reduced its stake in Packaging Corporation of America by 20.8% in the fourth quarter, selling 38,330 shares and leaving it with 145,892 shares valued at about $30.1 million.
• Insider activity also showed selling, as CEO Mark W. Kowlzan sold 9,266 shares in late May for about $2.0 million, trimming his direct ownership by 1.92%.
• Analysts remain broadly positive on PKG, with several firms raising price targets or upgrading ratings; the stock carries a consensus “Moderate Buy” and an average target price of $241.83.

Hsbc Holdings PLC lessened its holdings in Packaging Corporation of America (NYSE:PKG - Free Report) by 20.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 145,892 shares of the industrial products company's stock after selling 38,330 shares during the period. Hsbc Holdings PLC owned 0.16% of Packaging Corporation of America worth $30,133,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. GRIMES & Co WEALTH MANAGEMENT LLC acquired a new stake in Packaging Corporation of America in the 4th quarter worth approximately $4,664,000. PNC Financial Services Group Inc. boosted its position in Packaging Corporation of America by 10.1% during the fourth quarter. PNC Financial Services Group Inc. now owns 68,314 shares of the industrial products company's stock worth $14,088,000 after purchasing an additional 6,257 shares during the period. Victory Capital Management Inc. grew its holdings in 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 valued at $476,270,000 after purchasing an additional 521,352 shares during the last quarter. G&S Capital LLC grew its holdings 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 valued at $2,657,000 after purchasing an additional 6,753 shares during the last quarter. Finally, First Horizon Corp raised its position in shares of Packaging Corporation of America by 74,572.9% in the fourth quarter. First Horizon Corp now owns 35,843 shares of the industrial products company's stock valued at $7,392,000 after purchasing an additional 35,795 shares during the period. 89.78% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Packaging Corporation of America news, CEO Mark W. Kowlzan sold 9,266 shares of the company's stock in a transaction on 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 sale, the chief executive officer directly owned 473,610 shares in the company, valued at $102,811,258.80. This represents a 1.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.60% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

PKG has been the subject of several recent analyst reports. UBS Group raised shares of Packaging Corporation of America from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $232.00 to $248.00 in a report on Wednesday, May 20th. Weiss Ratings downgraded shares of Packaging Corporation of America from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, May 26th. JPMorgan Chase & Co. boosted 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. Truist Financial reaffirmed a "buy" rating and issued a $258.00 price target (down from $260.00) on shares of Packaging Corporation of America in a research report on Monday, April 27th. Finally, Deutsche Bank Aktiengesellschaft upgraded 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 note on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $241.83.

Packaging Corporation of America Stock Down 0.8%

Shares of PKG stock opened at $236.21 on Tuesday. The stock has a market cap of $21.05 billion, a P/E ratio of 28.74, a price-to-earnings-growth ratio of 2.23 and a beta of 0.80. Packaging Corporation of America has a one year low of $189.03 and a one year high of $249.51. The stock has a fifty day moving average price of $224.24 and a 200 day moving average price of $220.46. The company has a debt-to-equity ratio of 0.87, a current ratio of 3.07 and a quick ratio of 1.88.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last released its quarterly earnings data 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. The company had revenue of $2.37 billion during the quarter, compared to the consensus estimate of $2.45 billion. Packaging Corporation of America had a net margin of 8.04% and a return on equity of 19.27%. The firm's revenue for the quarter was up 10.6% compared to the same quarter last year. During the same period last year, the firm earned $2.31 EPS. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. Analysts predict that Packaging Corporation of America will post 10.45 earnings per share for the current year.

Packaging Corporation of America Increases Dividend

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

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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