Sound Shore Management Inc. CT Purchases New Holdings in Packaging Corporation of America $PKG

Key Points

• Sound Shore Management opened a new position in Packaging Corporation of America in Q1, buying 54,750 shares worth about $11.6 million.
• Packaging Corporation of America reported better-than-expected earnings for the quarter, with EPS of $2.40 versus estimates of $2.17, while revenue rose 10.6% from a year earlier.
• The company raised its quarterly dividend to $1.50 per share from $1.25, and several analysts boosted price targets, with consensus sentiment now at Moderate Buy.

Sound Shore Management Inc. CT acquired a new position in shares of Packaging Corporation of America (NYSE:PKG - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 54,750 shares of the industrial products company's stock, valued at approximately $11,619,000. Sound Shore Management Inc. CT owned approximately 0.06% of Packaging Corporation of America at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Parallel Advisors LLC lifted its holdings in shares of Packaging Corporation of America by 15.4% during the first quarter. Parallel Advisors LLC now owns 659 shares of the industrial products company's stock valued at $140,000 after purchasing an additional 88 shares during the last quarter. SEB Asset Management AB purchased a new stake in shares of Packaging Corporation of America in the 1st quarter worth approximately $4,897,000. Swiss National Bank grew its stake in shares of Packaging Corporation of America by 7.1% in the 1st quarter. Swiss National Bank now owns 264,100 shares of the industrial products company's stock worth $56,047,000 after buying an additional 17,500 shares during the last quarter. Heartland Advisors Inc. increased its position in Packaging Corporation of America by 14.5% during the 1st quarter. Heartland Advisors Inc. now owns 44,805 shares of the industrial products company's stock valued at $9,509,000 after buying an additional 5,660 shares in the last quarter. Finally, Bartlett & CO. Wealth Management LLC increased its position in Packaging Corporation of America by 230.3% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 720 shares of the industrial products company's stock valued at $157,000 after buying an additional 502 shares in the last quarter. Hedge funds and other institutional investors own 89.78% of the company's stock.

Packaging Corporation of America Stock Performance

Shares of PKG stock opened at $233.11 on Monday. 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 has a 52 week low of $189.03 and a 52 week high of $249.51. The firm has a market capitalization of $20.77 billion, a PE ratio of 28.36, a P/E/G ratio of 2.17 and a beta of 0.80. The company has a 50 day moving average price of $225.84 and a 200-day moving average price of $221.87.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share for the quarter, beating analysts' consensus estimates of $2.17 by $0.23. The business had revenue of $2.37 billion during the quarter, compared to analyst estimates of $2.45 billion. Packaging Corporation of America had a net margin of 8.04% and a return on equity of 19.27%. The company's quarterly revenue was up 10.6% compared to the same quarter last year. During the same period in the previous year, the business earned $2.31 EPS. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. As a group, equities research analysts expect that Packaging Corporation of America will post 10.46 earnings per share for the current year.

Packaging Corporation of America Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were paid a dividend of $1.50 per share. 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 is 72.99%.

Analyst Ratings Changes

PKG has been the subject of several analyst reports. JPMorgan Chase & Co. raised their price target on Packaging Corporation of America from $246.00 to $269.00 and gave the company an "overweight" rating in a report on Thursday, July 9th. Truist Financial upped their price target on shares of Packaging Corporation of America from $258.00 to $270.00 and gave the stock a "buy" rating in a research note on Wednesday, July 15th. Bank of America increased their price objective on shares of Packaging Corporation of America from $242.00 to $263.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. UBS Group upgraded shares of Packaging Corporation of America from a "neutral" rating to a "buy" rating and raised their price objective for the company from $232.00 to $248.00 in a research note on Wednesday, May 20th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Packaging Corporation of America from a "hold" rating to a "buy" rating and lifted their target price for the stock from $225.00 to $256.00 in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $256.14.

Insiders Place Their Bets

In other Packaging Corporation of America 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 completion of the sale, the chief executive officer owned 473,610 shares of the company's stock, valued at approximately $102,811,258.80. The trade was a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 1.60% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.