Packaging Corporation of America (NYSE:PKG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Packaging Corporation’s top and bottom lines improved year over year in third-quarter 2017. Sales beat the Zacks Consensus Estimate, however earnings missed the Consensus mark. The company expects fourth-quarter earnings to be $1.50 per share which will be bear the impact of elevated annual outage costs. Escalating wood and energy costs, higher prices for certain key chemicals and rising freight costs also remain headwinds. Further, the fourth quarter will witness seasonally lower volumes as well as a seasonally less rich mix in corrugated products. However, Packaging Corporation expects packaging segment demand to remain strong in fourth-quarter 2017 compared to the third quarter. The company will also gain from the Sacramento Container acquisition. Growth in the e-commerce and progress in DeRidder mill will also drive growth. Packaging Corporation outperformed the industry it belongs to over the past year.”
Several other research firms have also recently commented on PKG. Stephens assumed coverage on shares of Packaging Corporation of America in a report on Tuesday, October 24th. They set an “overweight” rating and a $130.00 price target for the company. KeyCorp restated a “hold” rating on shares of Packaging Corporation of America in a report on Sunday. Deutsche Bank AG restated a “hold” rating and set a $120.00 price target (up from $94.00) on shares of Packaging Corporation of America in a report on Monday, October 9th. Jefferies Group LLC restated a “buy” rating and set a $128.00 price target (up from $114.00) on shares of Packaging Corporation of America in a report on Friday, July 14th. Finally, BidaskClub cut shares of Packaging Corporation of America from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 19th. Eight research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $115.55.
Shares of Packaging Corporation of America (NYSE PKG) traded down 0.629% during trading on Monday, hitting $116.195. 222,602 shares of the company traded hands. The stock has a market cap of $10.88 billion, a price-to-earnings ratio of 22.388 and a beta of 1.83. Packaging Corporation of America has a one year low of $78.03 and a one year high of $120.75. The firm has a 50 day moving average price of $116.71 and a 200-day moving average price of $108.48.
Packaging Corporation of America (NYSE:PKG) last announced its earnings results on Wednesday, October 25th. The industrial products company reported $1.68 EPS for the quarter, missing the consensus estimate of $1.69 by ($0.01). The firm had revenue of $1.64 billion during the quarter, compared to analyst estimates of $1.64 billion. Packaging Corporation of America had a return on equity of 29.38% and a net margin of 8.18%. The business’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.30 earnings per share. Analysts predict that Packaging Corporation of America will post $6.04 EPS for the current year.
In related news, VP Thomas A. Hassfurther sold 6,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 12th. The shares were sold at an average price of $117.94, for a total transaction of $707,640.00. Following the transaction, the vice president now owns 155,071 shares of the company’s stock, valued at $18,289,073.74. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 1.20% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Victory Capital Management Inc. raised its position in Packaging Corporation of America by 10.0% during the third quarter. Victory Capital Management Inc. now owns 18,411 shares of the industrial products company’s stock valued at $2,111,000 after acquiring an additional 1,671 shares in the last quarter. Crossmark Global Holdings Inc. bought a new position in Packaging Corporation of America during the third quarter valued at approximately $1,720,000. Sumitomo Mitsui Asset Management Company LTD raised its position in Packaging Corporation of America by 9.2% during the third quarter. Sumitomo Mitsui Asset Management Company LTD now owns 7,322 shares of the industrial products company’s stock valued at $839,000 after acquiring an additional 618 shares in the last quarter. First Business Financial Services Inc. bought a new position in Packaging Corporation of America during the third quarter valued at approximately $493,000. Finally, Pictet Asset Management Ltd. raised its position in Packaging Corporation of America by 4.4% during the third quarter. Pictet Asset Management Ltd. now owns 441,291 shares of the industrial products company’s stock valued at $50,608,000 after acquiring an additional 18,660 shares in the last quarter. 88.42% of the stock is currently owned by hedge funds and other institutional investors.
About Packaging Corporation of America
Packaging Corporation of America (PCA) is a producer of containerboard products and uncoated freesheet. The Company operates through three segments: Packaging, Paper, and Corporate and Other. The Packaging segment produces a range of corrugated packaging products. The Paper segment manufactures and sells a range of papers, including communication-based papers and pressure sensitive papers.
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