Zacks Investment Research Downgrades Packaging Corp. of America (PKG) to Hold
Packaging Corp. of America (NYSE:PKG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Packaging Corporation’s third-quarter adjusted earnings missed the Zacks Consensus Estimate by $0.01, although it improved year over year. An enormous scale of production and an extended product portfolio offer a competitive advantage to fulfill the varied demands of its clientele. The diverse product portfolio also mitigates operating risks associated with any downturn in a particular product category. Industry-wide corrugated product shipments increased 1.7% year over year during third-quarter 2016. The accretive acquisition of TimBar is further expected to reap synergistic benefits in the future. However, macroeconomic conditions and fluctuations in industry capacity are expected to have an adverse impact on prices and sales volume. Stiff competition, volatility in raw material prices, strict environmental laws and uncertainties related to Brexit remain other headwinds for the company.”
A number of other equities analysts have also recently weighed in on PKG. Argus reaffirmed a “buy” rating and issued a $84.00 price target (up previously from $79.00) on shares of Packaging Corp. of America in a report on Friday, September 2nd. Barclays PLC upped their price target on Packaging Corp. of America from $71.00 to $81.00 and gave the stock an “overweight” rating in a report on Monday, July 25th. Deutsche Bank AG lowered Packaging Corp. of America from a “buy” rating to a “hold” rating and boosted their price objective for the stock from $73.00 to $75.00 in a research note on Friday, July 22nd. Jefferies Group reiterated a “buy” rating on shares of Packaging Corp. of America in a research note on Tuesday, August 23rd. Finally, BMO Capital Markets reiterated a “buy” rating and set a $89.00 price objective on shares of Packaging Corp. of America in a research note on Friday, October 21st. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $81.43.
Packaging Corp. of America (NYSE:PKG) opened at 82.27 on Tuesday. The firm’s 50-day moving average price is $81.26 and its 200 day moving average price is $74.02. The stock has a market cap of $7.68 billion, a PE ratio of 17.66 and a beta of 1.88. Packaging Corp. of America has a 12-month low of $44.32 and a 12-month high of $85.55.
Packaging Corp. of America (NYSE:PKG) last released its quarterly earnings results on Wednesday, October 19th. The company reported $1.30 earnings per share for the quarter, missing analysts’ consensus estimates of $1.31 by $0.01. The business earned $1.48 billion during the quarter, compared to analyst estimates of $559.20 million. Packaging Corp. of America had a return on equity of 27.24% and a net margin of 7.77%. The business’s revenue for the quarter was up .9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.26 EPS. Analysts anticipate that Packaging Corp. of America will post $4.82 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 14th. Investors of record on Thursday, September 15th were given a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 3.06%. This is a positive change from Packaging Corp. of America’s previous quarterly dividend of $0.55. The ex-dividend date of this dividend was Tuesday, September 13th. Packaging Corp. of America’s dividend payout ratio is presently 54.19%.
A number of hedge funds and other institutional investors have recently modified their holdings of the company. MSI Financial Services Inc raised its position in shares of Packaging Corp. of America by 3.7% in the third quarter. MSI Financial Services Inc now owns 1,232 shares of the company’s stock valued at $100,000 after buying an additional 44 shares during the last quarter. Seven Eight Capital LLC purchased a new position in Packaging Corp. of America during the second quarter worth approximately $120,000. Barnett & Company Inc. purchased a new position in Packaging Corp. of America during the first quarter worth approximately $131,000. Ropes Wealth Advisors LLC boosted its position in Packaging Corp. of America by 2.7% in the second quarter. Ropes Wealth Advisors LLC now owns 2,097 shares of the company’s stock worth $140,000 after buying an additional 55 shares during the period. Finally, Van ECK Associates Corp boosted its position in Packaging Corp. of America by 13.6% in the second quarter. Van ECK Associates Corp now owns 2,528 shares of the company’s stock worth $169,000 after buying an additional 302 shares during the period. Institutional investors own 86.70% of the company’s stock.
Packaging Corp. of America Company Profile
Packaging Corporation of America (PCA) is a producer of containerboard and corrugated packaging products, and uncoated free sheet. The Company operates through three segments: Packaging, Paper, and Corporate and Other. The Company operates over eight mills and approximately 90 corrugated products manufacturing plants.
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