USS Investment Management Ltd Decreases Stake in Packaging Corporation of America $PKG

Key Points

• USS Investment Management Ltd reduced its stake in Packaging Corporation of America (NYSE:PKG) by 32.3%, owning 17,803 shares valued at approximately $3.52 million after selling 8,500 shares in the first quarter.
• Several institutional investors have increased their positions in the company, including JPMorgan Chase & Co. with a 46.5% increase, resulting in total holdings of 3,038,859 shares worth $601.8 million.
• Packaging Corporation of America will pay a quarterly dividend of $1.25 per share on October 15, 2023, offering an annualized dividend yield of 2.3% with a payout ratio of 49.90%.

USS Investment Management Ltd decreased its position in shares of Packaging Corporation of America (NYSE:PKG - Free Report) by 32.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 17,803 shares of the industrial products company's stock after selling 8,500 shares during the period. USS Investment Management Ltd's holdings in Packaging Corporation of America were worth $3,524,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in PKG. Charles Schwab Investment Management Inc. increased its holdings in shares of Packaging Corporation of America by 6.6% in the first quarter. Charles Schwab Investment Management Inc. now owns 3,272,704 shares of the industrial products company's stock valued at $648,061,000 after purchasing an additional 202,755 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of Packaging Corporation of America by 46.5% in the first quarter. JPMorgan Chase & Co. now owns 3,038,859 shares of the industrial products company's stock valued at $601,755,000 after purchasing an additional 964,085 shares during the period. Price T Rowe Associates Inc. MD increased its holdings in shares of Packaging Corporation of America by 108.4% in the first quarter. Price T Rowe Associates Inc. MD now owns 2,363,617 shares of the industrial products company's stock valued at $468,045,000 after purchasing an additional 1,229,219 shares during the period. Ameriprise Financial Inc. increased its holdings in shares of Packaging Corporation of America by 2.6% in the first quarter. Ameriprise Financial Inc. now owns 1,905,475 shares of the industrial products company's stock valued at $377,347,000 after purchasing an additional 47,558 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Packaging Corporation of America by 5.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,248,739 shares of the industrial products company's stock valued at $247,240,000 after purchasing an additional 60,710 shares during the period. Institutional investors and hedge funds own 89.78% of the company's stock.

Packaging Corporation of America Price Performance

Packaging Corporation of America stock traded down $1.70 during trading hours on Friday, hitting $215.33. The stock had a trading volume of 471,233 shares, compared to its average volume of 853,098. The company has a debt-to-equity ratio of 0.54, a current ratio of 3.54 and a quick ratio of 2.32. The stock has a market capitalization of $19.37 billion, a price-to-earnings ratio of 21.49, a PEG ratio of 1.89 and a beta of 0.87. Packaging Corporation of America has a 1-year low of $172.71 and a 1-year high of $250.82. The stock's fifty day moving average is $204.93 and its two-hundred day moving average is $196.74.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The industrial products company reported $2.48 earnings per share for the quarter, beating the consensus estimate of $2.44 by $0.04. The company had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.18 billion. Packaging Corporation of America had a return on equity of 20.08% and a net margin of 10.47%.Packaging Corporation of America's revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.20 earnings per share. Packaging Corporation of America has set its Q3 2025 guidance at 2.800-2.800 EPS. As a group, analysts predict that Packaging Corporation of America will post 10.44 earnings per share for the current fiscal year.

Packaging Corporation of America Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 15th will be paid a dividend of $1.25 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.3%. Packaging Corporation of America's dividend payout ratio (DPR) is presently 49.90%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on PKG. Wells Fargo & Company boosted their target price on Packaging Corporation of America from $180.00 to $200.00 and gave the company an "equal weight" rating in a report on Thursday, July 10th. Jefferies Financial Group lowered Packaging Corporation of America from a "buy" rating to a "hold" rating and dropped their target price for the company from $245.00 to $205.00 in a report on Monday, June 16th. Citigroup boosted their target price on Packaging Corporation of America from $197.00 to $214.00 and gave the company a "neutral" rating in a report on Friday, July 25th. Truist Financial decreased their price target on Packaging Corporation of America from $239.00 to $238.00 and set a "buy" rating on the stock in a research note on Friday, July 25th. Finally, UBS Group upped their price objective on Packaging Corporation of America from $210.00 to $220.00 and gave the stock a "neutral" rating in a report on Tuesday, July 29th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $215.40.

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers.