Packaging Corporation of America (NYSE:PKG) Posts Earnings Results, Misses Estimates By $0.09 EPS

Packaging Corporation of America (NYSE:PKG) posted its quarterly earnings results on Tuesday. The industrial products company reported $2.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.41 by ($0.09), Zacks reports. Packaging Corporation of America had a return on equity of 19.72% and a net margin of 10.18%.

Packaging Corporation of America Price Performance

PKG stock traded up $1.45 during trading on Tuesday, hitting $223.28. The company had a trading volume of 1,804,413 shares, compared to its average volume of 944,632. The company has a market cap of $20.09 billion, a P/E ratio of 22.58, a P/E/G ratio of 1.69 and a beta of 0.88. The company has a fifty day moving average price of $207.28 and a two-hundred day moving average price of $206.54. The company has a current ratio of 3.16, a quick ratio of 2.00 and a debt-to-equity ratio of 0.84. Packaging Corporation of America has a fifty-two week low of $172.71 and a fifty-two week high of $239.66.

Packaging Corporation of America Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 14th. Investors of record on Monday, December 15th were given a dividend of $1.25 per share. The ex-dividend date of this dividend was Monday, December 15th. This represents a $5.00 dividend on an annualized basis and a yield of 2.2%. Packaging Corporation of America’s payout ratio is 50.56%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PKG. Geneos Wealth Management Inc. raised its stake in shares of Packaging Corporation of America by 40.4% in the first quarter. Geneos Wealth Management Inc. now owns 198 shares of the industrial products company’s stock worth $39,000 after purchasing an additional 57 shares during the last quarter. Advisory Services Network LLC bought a new position in Packaging Corporation of America in the 3rd quarter worth about $61,000. Brown Brothers Harriman & Co. grew its position in shares of Packaging Corporation of America by 61.5% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 893 shares of the industrial products company’s stock valued at $195,000 after purchasing an additional 340 shares in the last quarter. Certuity LLC bought a new stake in shares of Packaging Corporation of America during the 3rd quarter valued at about $201,000. Finally, Safeguard Investment Advisory Group LLC purchased a new stake in shares of Packaging Corporation of America during the 3rd quarter valued at $218,000. 89.78% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

PKG has been the topic of several recent research reports. JPMorgan Chase & Co. boosted their price target on Packaging Corporation of America from $238.00 to $245.00 and gave the company an “overweight” rating in a report on Friday, December 5th. Citigroup decreased their price target on Packaging Corporation of America from $229.00 to $226.00 and set a “neutral” rating on the stock in a research note on Tuesday, January 6th. Wells Fargo & Company upgraded shares of Packaging Corporation of America from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $222.00 to $233.00 in a report on Tuesday, January 6th. Zacks Research raised Packaging Corporation of America from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 6th. Finally, UBS Group upped their target price on Packaging Corporation of America from $230.00 to $235.00 and gave the company a “neutral” rating in a research report on Monday, January 12th. Four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $236.17.

Packaging Corporation of America Company Profile

Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.

Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.