Packaging Corporation of America (NYSE:PKG) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Packaging Corporation of America has an average recommendation of "Moderate Buy" from nine research firms, with a consensus target price of $229.17.
• CEO Mark W. Kowlzan sold 25,000 shares of the company's stock, reducing his holdings by 5.41%, while institutional investors own 89.78% of the shares.
• The company recently announced a quarterly dividend of $1.25 per share, with a current yield of 2.4%.

Packaging Corporation of America (NYSE:PKG - Get Free Report) has earned an average recommendation of "Moderate Buy" from the nine research firms that are presently covering the company, MarketBeat.com reports. Four analysts have rated the stock with a hold rating, three have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $229.1667.

Several brokerages have commented on PKG. Truist Financial lifted their target price on Packaging Corporation of America from $238.00 to $262.00 and gave the stock a "buy" rating in a report on Wednesday, September 17th. UBS Group lifted their target price on Packaging Corporation of America from $220.00 to $226.00 and gave the stock a "neutral" rating in a report on Monday, October 6th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Packaging Corporation of America in a report on Wednesday. Citigroup lifted their target price on Packaging Corporation of America from $214.00 to $218.00 and gave the stock a "neutral" rating in a report on Monday, October 6th. Finally, Jefferies Financial Group downgraded Packaging Corporation of America from a "buy" rating to a "hold" rating and cut their target price for the stock from $245.00 to $205.00 in a report on Monday, June 16th.

Insider Buying and Selling

In other news, CEO Mark W. Kowlzan sold 25,000 shares of Packaging Corporation of America stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $215.97, for a total value of $5,399,250.00. Following the completion of the transaction, the chief executive officer directly owned 437,378 shares of the company's stock, valued at approximately $94,460,526.66. This trade represents a 5.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Advyzon Investment Management LLC raised its position in shares of Packaging Corporation of America by 3.3% in the 2nd quarter. Advyzon Investment Management LLC now owns 1,608 shares of the industrial products company's stock worth $303,000 after acquiring an additional 52 shares in the last quarter. Forza Wealth Management LLC raised its position in shares of Packaging Corporation of America by 2.8% in the 2nd quarter. Forza Wealth Management LLC now owns 2,076 shares of the industrial products company's stock worth $391,000 after acquiring an additional 56 shares in the last quarter. Manchester Capital Management LLC raised its position in shares of Packaging Corporation of America by 39.0% in the 1st quarter. Manchester Capital Management LLC now owns 203 shares of the industrial products company's stock worth $40,000 after acquiring an additional 57 shares in the last quarter. Bruce G. Allen Investments LLC raised its position in shares of Packaging Corporation of America by 72.2% in the 2nd quarter. Bruce G. Allen Investments LLC now owns 136 shares of the industrial products company's stock worth $26,000 after acquiring an additional 57 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Packaging Corporation of America by 40.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 198 shares of the industrial products company's stock worth $39,000 after acquiring an additional 57 shares in the last quarter. 89.78% of the stock is owned by institutional investors.

Packaging Corporation of America Trading Down 2.2%

NYSE PKG opened at $206.84 on Friday. The company has a quick ratio of 2.32, a current ratio of 3.54 and a debt-to-equity ratio of 0.54. Packaging Corporation of America has a twelve month low of $172.71 and a twelve month high of $250.82. The company has a market cap of $18.61 billion, a price-to-earnings ratio of 20.64, a price-to-earnings-growth ratio of 1.78 and a beta of 0.91. The business's fifty day moving average is $209.33 and its 200 day moving average is $198.35.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last released its quarterly earnings data 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. Packaging Corporation of America had a return on equity of 20.08% and a net margin of 10.47%.The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter last year, the business posted $2.20 EPS. Packaging Corporation of America's revenue for the quarter 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. As a group, sell-side analysts expect that Packaging Corporation of America will post 10.44 EPS for the current fiscal year.

Packaging Corporation of America Announces Dividend

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

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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