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”, based on nine covering firms: six buys, two holds, and one strong buy. The average 12-month price target is about $241.83.
• The company recently reported better-than-expected earnings of $2.40 per share, beating estimates, though revenue came in slightly below forecasts. It also posted year-over-year revenue growth of 10.6%.
• PKG raised its quarterly dividend to $1.50 per share from $1.25, bringing the annualized payout to $6.00 and a yield of about 2.6%. Meanwhile, CEO Mark W. Kowlzan sold shares in a recent insider transaction, while institutional ownership remains high at 89.78%.

Packaging Corporation of America (NYSE:PKG - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nine research firms that are presently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold recommendation, six have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $241.8333.

PKG has been the topic of several analyst reports. Deutsche Bank Aktiengesellschaft raised Packaging Corporation of America from a "hold" rating to a "buy" rating and increased their target price for the stock from $225.00 to $256.00 in a research report on Monday, May 4th. Citigroup dropped their target price on Packaging Corporation of America from $227.00 to $217.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 14th. Weiss Ratings lowered Packaging Corporation of America from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, May 26th. Truist Financial reaffirmed a "buy" rating and issued a $258.00 target price (down from $260.00) on shares of Packaging Corporation of America in a research report on Monday, April 27th. Finally, JPMorgan Chase & Co. increased their target price on Packaging Corporation of America from $225.00 to $246.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th.

Insiders Place Their Bets

In other news, CEO Mark W. Kowlzan sold 9,266 shares of the firm's stock in a transaction on 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 transaction, the chief executive officer directly owned 473,610 shares of the company's stock, valued at approximately $102,811,258.80. This trade represents a 1.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 1.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PKG. Farmers National Bank bought a new stake in shares of Packaging Corporation of America during the 1st quarter worth about $243,000. Glenmede Trust Co. NA increased its stake in shares of Packaging Corporation of America by 50.7% during the first quarter. Glenmede Trust Co. NA now owns 2,306 shares of the industrial products company's stock valued at $489,000 after acquiring an additional 776 shares during the period. SHUTTLEWORTH & Co raised its holdings in Packaging Corporation of America by 1.4% during the first quarter. SHUTTLEWORTH & Co now owns 10,287 shares of the industrial products company's stock worth $2,183,000 after purchasing an additional 147 shares in the last quarter. SOA Wealth Advisors LLC. bought a new stake in Packaging Corporation of America during the first quarter worth approximately $82,000. Finally, Dayah Capital LLC bought a new stake in Packaging Corporation of America during the first quarter worth approximately $3,183,000. 89.78% of the stock is owned by institutional investors and hedge funds.

Packaging Corporation of America Stock Performance

Shares of PKG opened at $229.47 on Friday. The business's fifty day moving average price is $217.72 and its 200 day moving average price is $217.33. Packaging Corporation of America has a 12-month low of $184.76 and a 12-month high of $249.51. The stock has a market capitalization of $20.45 billion, a PE ratio of 27.92, a price-to-earnings-growth ratio of 2.07 and a beta of 0.81. The company has a debt-to-equity ratio of 0.87, a current ratio of 3.07 and a quick ratio of 1.88.

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, topping the consensus estimate of $2.17 by $0.23. Packaging Corporation of America had a return on equity of 19.27% and a net margin of 8.04%.The firm had revenue of $2.37 billion for the quarter, compared to analyst estimates of $2.45 billion. During the same period last year, the company earned $2.31 earnings per share. The firm's revenue for the quarter was up 10.6% on a year-over-year basis. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. Equities research analysts forecast that Packaging Corporation of America will post 10.8 EPS for the current year.

Packaging Corporation of America Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be given a $1.50 dividend. This is a boost from Packaging Corporation of America's previous quarterly dividend of $1.25. This represents a $6.00 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Monday, June 15th. Packaging Corporation of America's dividend payout ratio is 72.99%.

About Packaging Corporation of America

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.

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