Packaging Corporation of America $PKG Stock: Aberdeen Group plc Grows Position

Key Points

• Aberdeen Group plc increased its Packaging Corporation of America stake by 1,620.8% in the third quarter, to 734,812 shares valued at about $168.5 million.
• PCA reported quarterly EPS of $3.04, beating the $2.93 consensus estimate, while revenue rose 12.5% year over year to $2.60 billion.
• Analysts’ consensus rating was Moderate Buy, with an average price target of $275.43. The company’s quarterly dividend of $1.50 equates to $6 annually, or a 2.4% yield.

Aberdeen Group plc lifted its holdings in Packaging Corporation of America (NYSE:PKG - Free Report) by 1,620.8% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 734,812 shares of the industrial products company's stock after acquiring an additional 692,111 shares during the period. Aberdeen Group plc owned approximately 0.82% of Packaging Corporation of America worth $168,463,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the business. Greenleaf Trust lifted its position in Packaging Corporation of America by 1.7% during the 2nd quarter. Greenleaf Trust now owns 2,705 shares of the industrial products company's stock worth $645,000 after acquiring an additional 46 shares in the last quarter. Pinnacle Associates Ltd. lifted its position in shares of Packaging Corporation of America by 4.0% during the third quarter. Pinnacle Associates Ltd. now owns 1,547 shares of the industrial products company's stock worth $355,000 after purchasing an additional 59 shares in the last quarter. CX Institutional lifted its position in shares of Packaging Corporation of America by 8.2% during the second quarter. CX Institutional now owns 816 shares of the industrial products company's stock worth $195,000 after purchasing an additional 62 shares in the last quarter. Avidian Wealth Enterprises LLC lifted its position in shares of Packaging Corporation of America by 3.1% during the third quarter. Avidian Wealth Enterprises LLC now owns 2,110 shares of the industrial products company's stock worth $484,000 after purchasing an additional 63 shares in the last quarter. Finally, Compound Planning Inc. boosted its stake in shares of Packaging Corporation of America by 2.9% in the first quarter. Compound Planning Inc. now owns 2,629 shares of the industrial products company's stock valued at $558,000 after purchasing an additional 73 shares during the period. Hedge funds and other institutional investors own 89.78% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Bank of America lowered their price target on shares of Packaging Corporation of America from $280.00 to $260.00 and set a "buy" rating for the company in a report on Friday, September 11th. UBS Group dropped their target price on Packaging Corporation of America from $292.00 to $289.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Wells Fargo & Company cut their price target on Packaging Corporation of America from $246.00 to $245.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 7th. JPMorgan Chase & Co. increased their price target on Packaging Corporation of America from $320.00 to $322.00 and gave the company an "overweight" rating in a report on Friday, October 23rd. Finally, Truist Financial restated a "buy" rating and set a $294.00 price objective (up from $280.00) on shares of Packaging Corporation of America in a research note on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $275.43.

Insider Buying and Selling at Packaging Corporation of America

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 shares were sold at an average price of $250.71, for a total value of $3,008,520.00. Following the transaction, the vice president owned 19,110 shares in the company, valued at approximately $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 can be accessed through this hyperlink. Company insiders own 1.60% of the company's stock.

Packaging Corporation of America Trading Up 0.2%

NYSE PKG opened at $251.18 on Friday. Packaging Corporation of America has a one year low of $191.50 and a one year high of $262.59. The company has a 50-day simple moving average of $239.96 and a 200-day simple moving average of $231.10. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.82 and a current ratio of 2.87. The firm has a market capitalization of $22.38 billion, a PE ratio of 30.93, a price-to-earnings-growth ratio of 1.88 and a beta of 0.76.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $3.04 EPS for the quarter, topping the consensus estimate of $2.93 by $0.11. Packaging Corporation of America had a net margin of 7.40% and a return on equity of 19.43%. The business had revenue of $2.60 billion during the quarter, compared to analyst estimates of $2.61 billion. During the same quarter in the prior year, the firm earned $2.73 earnings per share. The company's quarterly revenue was up 12.5% on a year-over-year basis. On average, equities analysts forecast that Packaging Corporation of America will post 10.59 earnings per share for the current year.

Packaging Corporation of America Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th were paid a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, September 15th. Packaging Corporation of America's payout ratio is currently 73.89%.

Packaging Corporation of America Company Profile

Packaging Corporation of America (PCA) manufactures containerboard and corrugated packaging. Its packaging products include shipping boxes, retail displays and other protective packaging used to move and present goods. The company operates mills that produce containerboard and facilities that convert it into corrugated products. PCA also makes and sells paper products, including communication and specialty papers. Founded in 1999 as a spin-off from Tenneco, PCA is based in Lake Forest, Illinois, and serves customers primarily in the United States through a network of mills and packaging plants.

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