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

Key Points

• Packaging Corporation of America has a consensus analyst rating of “Moderate Buy”, with six buy ratings, three holds and one strong buy. The average 12-month price target from analysts is about $236.57.
• The company recently beat earnings expectations, reporting $2.40 EPS versus the $2.17 estimate, while revenue of $2.37 billion came in below forecasts. Revenue still rose 10.6% year over year.
• PKG also raised its quarterly dividend to $1.50 per share, or $6.00 annualized, giving the stock a yield of about 2.8%. The company remains heavily owned by institutions, which hold 89.78% of shares.

Packaging Corporation of America (NYSE:PKG - Get Free Report) has earned an average rating of "Moderate Buy" from the ten ratings firms that are presently covering the company, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, six have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $236.5714.

Several analysts recently commented on the stock. Citigroup reduced their price objective on shares of Packaging Corporation of America from $227.00 to $217.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Weiss Ratings upgraded shares of Packaging Corporation of America from a "hold (c+)" rating to a "buy (b)" rating in a research note on Monday, May 11th. 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. Wells Fargo & Company reduced their price objective on shares of Packaging Corporation of America from $234.00 to $226.00 and set an "overweight" rating for the company in a research note on Tuesday, April 7th. Finally, Truist Financial reiterated a "buy" rating and issued a $258.00 price objective (down from $260.00) on shares of Packaging Corporation of America in a research note on Monday, April 27th.

Packaging Corporation of America Stock Down 0.0%

Shares of NYSE:PKG opened at $215.84 on Monday. The company has a market cap of $19.23 billion, a price-to-earnings ratio of 26.26, a PEG ratio of 1.95 and a beta of 0.81. The firm's 50-day simple moving average is $212.64 and its 200-day simple moving average is $214.09. 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 fifty-two week low of $184.76 and a fifty-two week high of $249.51.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share for the quarter, beating the consensus estimate of $2.17 by $0.23. The business had revenue of $2.37 billion for the quarter, compared to the consensus estimate of $2.45 billion. Packaging Corporation of America had a net margin of 8.04% and a return on equity of 19.27%. The business's quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.31 earnings per share. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. As a group, equities research analysts predict that Packaging Corporation of America will post 10.81 earnings per share for the current year.

Packaging Corporation of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be paid a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.8%. This is a positive change from Packaging Corporation of America's previous quarterly dividend of $1.25. The ex-dividend date is Monday, June 15th. Packaging Corporation of America's dividend payout ratio (DPR) is 60.83%.

Institutional Trading of Packaging Corporation of America

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in Packaging Corporation of America by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,279,442 shares of the industrial products company's stock worth $2,326,159,000 after acquiring an additional 51,790 shares during the last quarter. State Street Corp raised its position in Packaging Corporation of America by 1.3% during the fourth quarter. State Street Corp now owns 4,185,761 shares of the industrial products company's stock worth $868,349,000 after acquiring an additional 54,884 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in Packaging Corporation of America by 2.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,478,505 shares of the industrial products company's stock worth $717,372,000 after acquiring an additional 83,978 shares during the last quarter. JPMorgan Chase & Co. raised its position in Packaging Corporation of America by 7.5% during the fourth quarter. JPMorgan Chase & Co. now owns 3,316,670 shares of the industrial products company's stock worth $683,997,000 after acquiring an additional 231,474 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its position in Packaging Corporation of America by 2.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,816,736 shares of the industrial products company's stock worth $580,897,000 after acquiring an additional 73,047 shares during the last quarter. Institutional investors and hedge funds own 89.78% 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.