Packaging Corporation of America (NYSE:PKG) Shares Up 6.4% After Better-Than-Expected Earnings

Key Points

• Shares rose 6.4% after Q1 EPS of $2.40 topped estimates of $2.17 while revenue missed at $2.37B but was up 10.6% year‑over‑year; Q2 guidance was set at 2.330 EPS.
• The company paid a quarterly dividend of $1.25 (annualized $5.00) for a yield of 2.3% and a payout ratio of 58.34%.
• Analyst sentiment is mixed—MarketBeat shows an average rating of "Moderate Buy" with an average price target of $229—while insiders have sold shares and institutional investors own about 89.8% of the stock.

Shares of Packaging Corporation of America (NYSE:PKG - Get Free Report) shot up 6.4% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $218.78 and last traded at $218.3440. 368,158 shares were traded during trading, a decline of 64% from the average session volume of 1,023,421 shares. The stock had previously closed at $205.24.

The industrial products company reported $2.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.17 by $0.23. Packaging Corporation of America had a return on equity of 19.22% and a net margin of 8.61%.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 EPS. The firm's quarterly revenue 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.

Packaging Corporation of America Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th were paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, March 13th. Packaging Corporation of America's payout ratio is currently 58.34%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Citigroup reduced their price objective on Packaging Corporation of America from $227.00 to $217.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. Argus raised Packaging Corporation of America to a "strong-buy" rating in a research note on Thursday, February 26th. Zacks Research raised Packaging Corporation of America from a "strong sell" rating to a "hold" rating in a research note on Tuesday, January 6th. Truist Financial reduced their price objective on Packaging Corporation of America from $267.00 to $260.00 and set a "buy" rating on the stock in a research note on Tuesday. Finally, UBS Group reduced their price objective on Packaging Corporation of America from $235.00 to $225.00 and set a "neutral" rating on the stock in a research note on Friday, April 10th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $229.00.

Insiders Place Their Bets

In other Packaging Corporation of America news, President Thomas A. Hassfurther sold 12,129 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $230.50, for a total value of $2,795,734.50. Following the completion of the transaction, the president owned 197,062 shares in the company, valued at $45,422,791. This represents a 5.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Packaging Corporation of America

A number of institutional investors and hedge funds have recently bought and sold shares of PKG. Integrated Wealth Concepts LLC boosted its holdings in Packaging Corporation of America by 73.5% in the 1st quarter. Integrated Wealth Concepts LLC now owns 2,956 shares of the industrial products company's stock worth $585,000 after acquiring an additional 1,252 shares during the period. Empowered Funds LLC boosted its holdings in Packaging Corporation of America by 538.6% in the 1st quarter. Empowered Funds LLC now owns 6,303 shares of the industrial products company's stock worth $1,248,000 after acquiring an additional 5,316 shares during the period. Geneos Wealth Management Inc. boosted its holdings in 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 during the period. Sivia Capital Partners LLC boosted its holdings in Packaging Corporation of America by 43.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,770 shares of the industrial products company's stock worth $334,000 after acquiring an additional 537 shares during the period. Finally, Cresset Asset Management LLC boosted its holdings in Packaging Corporation of America by 17.0% in the 2nd quarter. Cresset Asset Management LLC now owns 1,772 shares of the industrial products company's stock worth $336,000 after acquiring an additional 258 shares during the period. Hedge funds and other institutional investors own 89.78% of the company's stock.

Packaging Corporation of America Stock Performance

The stock has a market cap of $19.55 billion, a PE ratio of 25.51, a PEG ratio of 1.90 and a beta of 0.90. The stock has a fifty day simple moving average of $218.86 and a two-hundred day simple moving average of $212.51. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.94 and a current ratio of 3.17.

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.

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