Packaging Corporation of America (PKG) Upgraded to “Hold” by Zacks Investment Research
Zacks Investment Research upgraded shares of Packaging Corporation of America (NYSE:PKG) from a sell rating to a hold rating in a research note issued to investors on Tuesday, July 11th.
According to Zacks, “Packaging Corporation anticipates second-quarter 2017 earnings of $1.45 per share, reflecting 16% year-over-year growth. It continues to implement its previously announced packaging segment price increases and expects higher corrugated products shipments in the second quarter. Energy costs are likely to improve as it enters into a seasonally milder weather. Moreover, the company will gain from acquisitions and its diverse product portfolio. The stock outperformed the Zacks categorized Containers-Paper/Plastic sub industry in the last one year. However, Packaging Corporation’s performance will be hurt by escalating expenses, continued price inflation on recycled fiber and strong competition.”
A number of other analysts have also recently weighed in on the stock. Citigroup Inc. raised their target price on shares of Packaging Corporation of America from $106.00 to $112.00 and gave the stock a neutral rating in a report on Friday, April 14th. BMO Capital Markets reaffirmed a buy rating and issued a $104.00 price objective (up previously from $100.00) on shares of Packaging Corporation of America in a research note on Monday, May 1st. Jefferies Group LLC reaffirmed a buy rating and issued a $107.00 price objective on shares of Packaging Corporation of America in a research note on Wednesday, April 12th. Deutsche Bank AG raised their price objective on shares of Packaging Corporation of America from $91.00 to $94.00 and gave the stock a hold rating in a research note on Tuesday, April 25th. Finally, ValuEngine raised shares of Packaging Corporation of America from a hold rating to a buy rating in a research note on Friday, June 2nd. Seven research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. The stock presently has an average rating of Buy and a consensus target price of $102.73.
Packaging Corporation of America (NYSE:PKG) traded up 0.31% during mid-day trading on Tuesday, hitting $109.42. The stock had a trading volume of 766,067 shares. The stock has a market cap of $10.22 billion, a P/E ratio of 21.08 and a beta of 1.86. Packaging Corporation of America has a one year low of $73.34 and a one year high of $114.31. The company has a 50 day moving average price of $110.08 and a 200 day moving average price of $99.10.
Packaging Corporation of America (NYSE:PKG) last issued its earnings results on Wednesday, July 26th. The industrial products company reported $1.52 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.47 by $0.05. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.56 billion. Packaging Corporation of America had a net margin of 8.05% and a return on equity of 28.31%. The firm’s revenue for the quarter was up 11.8% compared to the same quarter last year. During the same period last year, the firm posted $1.25 earnings per share. On average, equities analysts anticipate that Packaging Corporation of America will post $6.00 EPS for the current year.
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The company also recently announced a quarterly dividend, which was paid on Friday, July 14th. Investors of record on Thursday, June 15th were issued a $0.63 dividend. The ex-dividend date was Tuesday, June 13th. This represents a $2.52 annualized dividend and a yield of 2.30%. Packaging Corporation of America’s dividend payout ratio (DPR) is presently 48.56%.
Several hedge funds and other institutional investors have recently bought and sold shares of PKG. Advisory Services Network LLC bought a new position in Packaging Corporation of America during the first quarter valued at about $113,000. TrimTabs Asset Management LLC increased its position in Packaging Corporation of America by 88.5% in the first quarter. TrimTabs Asset Management LLC now owns 1,295 shares of the industrial products company’s stock valued at $119,000 after buying an additional 608 shares during the last quarter. Creative Planning increased its position in Packaging Corporation of America by 44.9% in the first quarter. Creative Planning now owns 1,563 shares of the industrial products company’s stock valued at $143,000 after buying an additional 484 shares during the last quarter. Atria Investments LLC bought a new position in Packaging Corporation of America during the second quarter valued at about $200,000. Finally, CAPROCK Group Inc. bought a new position in Packaging Corporation of America during the second quarter valued at about $211,000. Institutional investors own 88.25% of the company’s stock.
Packaging Corporation of America Company Profile
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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