Packaging Corp Of America (PKG) Lifted to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Packaging Corp Of America (NYSE:PKG) from a sell rating to a hold rating in a research report 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. 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 the fourth-quarter compared to the third quarter of 2017. The company will also gain from the Sacramento Container acquisition. Growth in the e-commerce and progress in DeRidder mill will also drive growth. Moreover, Packaging Corporation outperformed the industry it belongs to over the past year.”

PKG has been the subject of a number of other reports. KeyCorp restated a hold rating on shares of Packaging Corp Of America in a report on Wednesday, October 18th. Deutsche Bank restated a hold rating and issued a $120.00 price target (up from $94.00) on shares of Packaging Corp Of America in a report on Monday, October 9th. Stephens started coverage on shares of Packaging Corp Of America in a report on Tuesday, October 24th. They issued an overweight rating and a $130.00 price target for the company. Wells Fargo & Co restated a market perform rating and issued a $130.00 price target (up from $115.00) on shares of Packaging Corp Of America in a report on Monday, January 8th. Finally, ValuEngine upgraded shares of Packaging Corp Of America from a hold rating to a buy rating in a report on Sunday, December 31st. Eight research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. The stock presently has an average rating of Hold and an average price target of $118.92.

Packaging Corp Of America (NYSE:PKG) traded down $0.92 on Tuesday, hitting $128.32. 535,861 shares of the stock traded hands, compared to its average volume of 622,697. The company has a debt-to-equity ratio of 1.30, a quick ratio of 1.49 and a current ratio of 2.45. The firm has a market capitalization of $12,193.86, a PE ratio of 23.76, a PEG ratio of 2.30 and a beta of 1.82. Packaging Corp Of America has a 52 week low of $85.36 and a 52 week high of $130.19.

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

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

In other Packaging Corp Of America news, SVP Charles J. Carter sold 6,150 shares of the firm’s stock in a transaction on Friday, October 27th. The shares were 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 of the company’s stock, valued at $2,839,975.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Thomas W.H. Walton sold 6,027 shares of the firm’s stock in a transaction on Thursday, November 2nd. The shares were sold at an average price of $116.15, for a total transaction of $700,036.05. Following the completion of the transaction, the senior vice president now directly owns 32,690 shares in the company, valued at $3,796,943.50. The disclosure for this sale can be found here. Insiders sold 67,177 shares of company stock worth $1,427,532 over the last ninety days. Insiders own 1.20% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Southeast Asset Advisors Inc. lifted its position in shares of Packaging Corp Of America by 0.3% during the second quarter. Southeast Asset Advisors Inc. now owns 4,560 shares of the industrial products company’s stock valued at $508,000 after purchasing an additional 12 shares in the last quarter. Van ECK Associates Corp lifted its position in shares of Packaging Corp Of America by 1.5% during the second quarter. Van ECK Associates Corp now owns 2,302 shares of the industrial products company’s stock valued at $256,000 after purchasing an additional 34 shares in the last quarter. Ropes Wealth Advisors LLC lifted its position in shares of Packaging Corp Of America by 1.8% during the second quarter. Ropes Wealth Advisors LLC now owns 3,969 shares of the industrial products company’s stock valued at $442,000 after purchasing an additional 69 shares in the last quarter. Comerica Securities Inc. lifted its position in shares of Packaging Corp Of America by 1.3% during the second quarter. Comerica Securities Inc. now owns 9,420 shares of the industrial products company’s stock valued at $1,055,000 after purchasing an additional 118 shares in the last quarter. Finally, Toronto Dominion Bank lifted its position in shares of Packaging Corp Of America by 12.4% during the second quarter. Toronto Dominion Bank now owns 1,158 shares of the industrial products company’s stock valued at $129,000 after purchasing an additional 128 shares in the last quarter. 89.96% of the stock is currently owned by institutional investors.

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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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