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

Key Points

• Packaging Corporation of America (NYSE:PKG) has received a consensus rating of "Moderate Buy" from six brokerages, with an average 1-year price target of $215.40.
• The company recently reported $2.48 earnings per share for the quarter, beating analyst estimates, alongside a quarterly revenue of $2.17 billion, which was slightly below expectations.
• Packaging Corporation of America announced a quarterly dividend of $1.25, resulting in a dividend yield of 2.4% and a payout ratio of 49.90%.

Packaging Corporation of America (NYSE:PKG - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the six brokerages that are covering the firm, MarketBeat reports. Four research analysts have rated the stock with a hold recommendation, one has issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $215.40.

PKG has been the subject of a number of recent analyst reports. Citigroup raised their price objective on Packaging Corporation of America from $197.00 to $214.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. UBS Group increased their price objective on shares of Packaging Corporation of America from $210.00 to $220.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 29th. Jefferies Financial Group lowered Packaging Corporation of America from a "buy" rating to a "hold" rating and dropped their target price for the stock from $245.00 to $205.00 in a research report on Monday, June 16th. Wells Fargo & Company raised their price target on shares of Packaging Corporation of America from $180.00 to $200.00 and gave the company an "equal weight" rating in a research note on Thursday, July 10th. Finally, Truist Financial cut their price objective on shares of 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 Price Performance

PKG stock opened at $212.6010 on Friday. 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 1 year low of $172.71 and a 1 year high of $250.82. The stock has a 50-day simple moving average of $197.84 and a 200-day simple moving average of $196.23. The firm has a market cap of $19.13 billion, a P/E ratio of 21.22, a price-to-earnings-growth ratio of 2.47 and a beta of 0.85.

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

Packaging Corporation of America Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th will be issued a $1.25 dividend. The ex-dividend date is Monday, September 15th. This represents a $5.00 annualized dividend and a dividend yield of 2.4%. Packaging Corporation of America's dividend payout ratio is 49.90%.

Institutional Trading of Packaging Corporation of America

A number of hedge funds and other institutional investors have recently made changes to their positions in PKG. Clearstead Trust LLC increased its holdings in shares of Packaging Corporation of America by 118.6% in the first quarter. Clearstead Trust LLC now owns 129 shares of the industrial products company's stock valued at $26,000 after buying an additional 70 shares in the last quarter. Bruce G. Allen Investments LLC boosted its position in Packaging Corporation of America by 72.2% during the second quarter. Bruce G. Allen Investments LLC now owns 136 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 57 shares during the last quarter. TCTC Holdings LLC lifted its holdings in shares of Packaging Corporation of America by 86.4% during the 1st quarter. TCTC Holdings LLC now owns 151 shares of the industrial products company's stock valued at $30,000 after buying an additional 70 shares during the last quarter. Trust Co. of Toledo NA OH acquired a new stake in Packaging Corporation of America in the second quarter valued at approximately $33,000. Finally, Alpine Bank Wealth Management bought a new stake in Packaging Corporation of America in the first quarter worth $39,000. 89.78% of the stock is currently owned by institutional investors.

Packaging Corporation of America Company Profile

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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