Packaging Corporation of America (NYSE:PKG) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Packaging Corporation of America (NYSE:PKG) has received a consensus rating of “Moderate Buy” from six research firms, with an average twelve-month price target of $215.40.
• The company recently reported quarterly earnings of $2.48 EPS, exceeding expectations by $0.04, and plans to pay a quarterly dividend of $1.25 per share.
• CEO Mark W. Kowlzan sold 25,000 shares at an average price of $215.97, reducing his holdings by 5.41% while maintaining a significant stake in the company.

Packaging Corporation of America (NYSE:PKG - Get Free Report) has received an average rating of "Moderate Buy" from the six research firms that are covering the company, Marketbeat reports. Four equities research analysts have rated the stock with a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $215.40.

A number of equities analysts have recently issued reports on PKG shares. Jefferies Financial Group lowered shares of Packaging Corporation of America from a "buy" rating to a "hold" rating and reduced their target price for the stock from $245.00 to $205.00 in a research report on Monday, June 16th. 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. Wells Fargo & Company increased their price objective on Packaging Corporation of America from $180.00 to $200.00 and gave the company an "equal weight" rating in a research report on Thursday, July 10th. Citigroup boosted their target price on Packaging Corporation of America from $197.00 to $214.00 and gave the stock a "neutral" rating in a research report on Friday, July 25th. Finally, Truist Financial cut 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.

Packaging Corporation of America Stock Performance

Shares of NYSE:PKG opened at $211.59 on Wednesday. The business has a fifty day moving average of $205.31 and a 200-day moving average of $196.62. The company has a debt-to-equity ratio of 0.54, a quick ratio of 2.32 and a current ratio of 3.54. Packaging Corporation of America has a twelve month low of $172.71 and a twelve month high of $250.82. The firm has a market cap of $19.04 billion, a PE ratio of 21.12, a price-to-earnings-growth ratio of 1.85 and a beta of 0.87.

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

Packaging Corporation of America Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be given a dividend of $1.25 per share. The ex-dividend date is Monday, September 15th. This represents a $5.00 dividend on an annualized basis and a yield of 2.4%. Packaging Corporation of America's dividend payout ratio is presently 49.90%.

Insider Activity

In other news, CEO Mark W. Kowlzan sold 25,000 shares of Packaging Corporation of America stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $215.97, for a total transaction of $5,399,250.00. Following the completion of the sale, the chief executive officer owned 437,378 shares in the company, valued at $94,460,526.66. The trade was a 5.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Packaging Corporation of America

A number of hedge funds and other institutional investors have recently bought and sold shares of PKG. Jacobs Levy Equity Management Inc. acquired a new position in shares of Packaging Corporation of America in the 1st quarter valued at $2,127,000. Sowell Financial Services LLC bought a new stake in Packaging Corporation of America in the first quarter valued at about $309,000. Wealth Enhancement Advisory Services LLC lifted its stake in Packaging Corporation of America by 5.6% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 28,639 shares of the industrial products company's stock valued at $5,671,000 after buying an additional 1,531 shares during the period. Brookstone Capital Management lifted its stake in Packaging Corporation of America by 718.0% in the first quarter. Brookstone Capital Management now owns 10,086 shares of the industrial products company's stock valued at $1,997,000 after buying an additional 8,853 shares during the period. Finally, First United Bank & Trust bought a new position in Packaging Corporation of America during the first quarter worth about $289,000. 89.78% of the stock is owned by institutional investors.

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.

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