Packaging Corp Of America (PKG) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Packaging Corp Of America (NYSE:PKG) from a hold rating to a sell rating in a research note released on Tuesday.

According to Zacks, “Packaging Corporation’s fourth-quarter 2017 earnings will 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. The company also stated that e-commerce clearly has an impact in OCC collection. Further, the fourth quarter will witness seasonally lower volumes as well as a seasonally less rich mix in corrugated products. Moreover, Packaging Corporation underperformed the industry it belongs to over the past three months.”

Several other research firms have also weighed in on PKG. ValuEngine upgraded Packaging Corp Of America from a hold rating to a buy rating in a report on Sunday, December 31st. Stephens started coverage on Packaging Corp Of America in a research report on Tuesday, October 24th. They issued an overweight rating and a $130.00 price objective on the stock. Barclays upped their price objective on Packaging Corp Of America from $108.00 to $110.00 and gave the company an equal weight rating in a research report on Monday, October 30th. KeyCorp reaffirmed a hold rating on shares of Packaging Corp Of America in a research report on Sunday, October 29th. Finally, Deutsche Bank reaffirmed a hold rating and issued a $120.00 price objective (up previously from $94.00) on shares of Packaging Corp Of America in a research report on Monday, October 9th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have given a buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $117.36.

Shares of Packaging Corp Of America (PKG) opened at $128.47 on Tuesday. Packaging Corp Of America has a twelve month low of $84.68 and a twelve month high of $129.15. The firm has a market capitalization of $12,120.00, a price-to-earnings ratio of 23.79, a P/E/G ratio of 2.27 and a beta of 1.81. The company has a current ratio of 2.45, a quick ratio of 1.49 and a debt-to-equity ratio of 1.30.

Packaging Corp Of America (NYSE:PKG) last released its quarterly earnings results on Wednesday, October 25th. The industrial products company reported $1.68 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.69 by ($0.01). Packaging Corp Of America had a net margin of 8.18% and a return on equity of 29.38%. The company had revenue of $1.64 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the previous year, the company posted $1.30 EPS. The business’s quarterly revenue was up 10.5% on a year-over-year basis. equities analysts forecast that Packaging Corp Of America will post 5.99 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 12th. Shareholders of record on Tuesday, December 26th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 1.96%. The ex-dividend date is Friday, December 22nd. Packaging Corp Of America’s dividend payout ratio (DPR) is presently 46.67%.

In other news, SVP Thomas W.H. Walton sold 6,027 shares of the stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $116.15, for a total transaction of $700,036.05. Following the transaction, the senior vice president now owns 32,690 shares of the company’s stock, valued at approximately $3,796,943.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Charles J. Carter sold 6,150 shares of the stock in a transaction on Friday, October 27th. The stock was sold at an average price of $117.04, for a total value of $719,796.00. Following the transaction, the senior vice president now directly owns 24,265 shares in the company, valued at approximately $2,839,975.60. The disclosure for this sale can be found here. Insiders have sold a total of 67,177 shares of company stock worth $1,427,532 in the last three months. Corporate insiders own 1.20% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of PKG. Schwab Charles Investment Management Inc. grew its position in shares of Packaging Corp Of America by 4.9% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 446,796 shares of the industrial products company’s stock worth $49,769,000 after buying an additional 20,985 shares in the last quarter. Victory Capital Management Inc. grew its position in shares of Packaging Corp Of America by 21.3% during the 2nd quarter. Victory Capital Management Inc. now owns 16,740 shares of the industrial products company’s stock worth $1,865,000 after buying an additional 2,939 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its position in shares of Packaging Corp Of America by 7.4% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 7,510 shares of the industrial products company’s stock worth $837,000 after buying an additional 517 shares in the last quarter. Swiss National Bank grew its position in shares of Packaging Corp Of America by 2.9% during the 2nd quarter. Swiss National Bank now owns 343,700 shares of the industrial products company’s stock worth $38,285,000 after buying an additional 9,800 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. grew its position in shares of Packaging Corp Of America by 21.5% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 24,515 shares of the industrial products company’s stock worth $2,731,000 after buying an additional 4,334 shares in the last quarter. 89.96% of the stock is currently owned by institutional investors and hedge funds.

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About Packaging Corp 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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