Packaging Corporation of America (NYSE:PKG) Sees Significant Growth in Short Interest

Key Points

• Short interest for Packaging Corporation of America has seen a 22.4% increase from mid-August, with a total of 2,080,000 shares short sold as of August 31st, representing 2.4% of the company's shares.
• CEO Mark W. Kowlzan sold 25,000 shares at an average price of $215.97, reducing his ownership by 5.41%, while insiders own 1.50% of the stock.
• The company announced a quarterly dividend of $1.25 per share, reflecting an annualized dividend yield of 2.3%, with a payout ratio of 49.90%.

Packaging Corporation of America (NYSE:PKG - Get Free Report) was the recipient of a large growth in short interest in August. As of August 31st, there was short interest totaling 2,080,000 shares, a growth of 22.4% from the August 15th total of 1,700,000 shares. Approximately 2.4% of the shares of the company are sold short. Based on an average daily volume of 740,600 shares, the short-interest ratio is currently 2.8 days. Based on an average daily volume of 740,600 shares, the short-interest ratio is currently 2.8 days. Approximately 2.4% of the shares of the company are sold short.

Wall Street Analyst Weigh In

PKG has been the subject of a number of recent research reports. UBS Group boosted their price objective on Packaging Corporation of America from $210.00 to $220.00 and gave the company a "neutral" rating in a research note on Tuesday, July 29th. Jefferies Financial Group lowered shares of Packaging Corporation of America from a "buy" rating to a "hold" rating and dropped their price target for the stock from $245.00 to $205.00 in a research report on Monday, June 16th. Truist Financial increased their price objective on shares of Packaging Corporation of America from $238.00 to $262.00 and gave the stock a "buy" rating in a research note on Wednesday, September 17th. Citigroup lifted their target price on shares of 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. Finally, Wells Fargo & Company increased their price target on Packaging Corporation of America from $180.00 to $200.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 10th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Packaging Corporation of America currently has an average rating of "Moderate Buy" and an average target price of $220.20.

Insider Activity at Packaging Corporation of America

In related news, CEO Mark W. Kowlzan sold 25,000 shares of the firm's stock in a transaction on 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 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Packaging Corporation of America

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Clearstead Trust LLC boosted its stake in Packaging Corporation of America by 118.6% during the first quarter. Clearstead Trust LLC now owns 129 shares of the industrial products company's stock worth $26,000 after buying an additional 70 shares during the period. Bruce G. Allen Investments LLC boosted its stake in shares of Packaging Corporation of America by 72.2% during the 2nd quarter. Bruce G. Allen Investments LLC now owns 136 shares of the industrial products company's stock worth $26,000 after purchasing an additional 57 shares during the period. TCTC Holdings LLC grew its holdings in 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 purchasing an additional 70 shares during the last quarter. Trust Co. of Toledo NA OH purchased a new stake in Packaging Corporation of America in the 2nd quarter worth about $33,000. Finally, Alpine Bank Wealth Management bought a new stake in Packaging Corporation of America in the first quarter worth about $39,000. Hedge funds and other institutional investors own 89.78% of the company's stock.

Packaging Corporation of America Price Performance

Shares of PKG stock traded up $1.72 on Monday, reaching $213.00. The company's stock had a trading volume of 464,101 shares, compared to its average volume of 733,928. The stock's fifty day simple moving average is $205.90 and its 200-day simple moving average is $196.76. Packaging Corporation of America has a 1 year low of $172.71 and a 1 year high of $250.82. The company has a market capitalization of $19.17 billion, a price-to-earnings ratio of 21.26, a price-to-earnings-growth ratio of 1.84 and a beta of 0.87. The company has a current ratio of 3.54, a quick ratio of 2.32 and a debt-to-equity ratio of 0.54.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last released its quarterly earnings results 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 the consensus estimate of $2.18 billion. During the same quarter in the prior year, the firm earned $2.20 earnings per share. Packaging Corporation of America's 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. Analysts forecast that Packaging Corporation of America will post 10.44 earnings per share for the current fiscal year.

Packaging Corporation of America Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Monday, September 15th. 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.