Packaging Corporation of America (NYSE:PKG) Trading 6.1% Higher – Here’s Why

Packaging Corporation of America (NYSE:PKG) shares were up 6.1% during trading on Tuesday . The stock traded as high as $198.67 and last traded at $199.86. Approximately 267,596 shares were traded during mid-day trading, a decline of 64% from the average daily volume of 738,088 shares. The stock had previously closed at $188.45.

Analysts Set New Price Targets

PKG has been the subject of a number of research analyst reports. Jefferies Financial Group lowered shares of Packaging Corporation of America from a “buy” rating to a “hold” rating and reduced their price target for the stock from $245.00 to $205.00 in a research report on Monday, June 16th. Truist Financial boosted their target price on shares of Packaging Corporation of America from $237.00 to $239.00 and gave the stock a “buy” rating in a research report on Tuesday, June 17th. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $180.00 price target (down from $205.00) on shares of Packaging Corporation of America in a research report on Friday, May 9th. Wall Street Zen downgraded shares of Packaging Corporation of America from a “buy” rating to a “hold” rating in a report on Sunday, April 6th. Finally, UBS Group began coverage on shares of Packaging Corporation of America in a report on Wednesday, June 4th. They set a “neutral” rating and a $200.00 price objective for the company. Five analysts have rated the stock with a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $211.80.

Packaging Corporation of America Price Performance

The firm has a market capitalization of $18.25 billion, a price-to-earnings ratio of 21.25, a P/E/G ratio of 2.50 and a beta of 0.84. The company’s 50 day moving average is $189.34 and its 200-day moving average is $203.48. The company has a current ratio of 3.28, a quick ratio of 2.15 and a debt-to-equity ratio of 0.55.

Packaging Corporation of America (NYSE:PKG) last released its quarterly earnings data on Tuesday, April 22nd. The industrial products company reported $2.31 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.10. The business had revenue of $2.14 billion for the quarter, compared to analyst estimates of $2.12 billion. Packaging Corporation of America had a return on equity of 20.08% and a net margin of 10.09%. Equities research analysts anticipate that Packaging Corporation of America will post 10.44 earnings per share for the current year.

Packaging Corporation of America Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Friday, June 13th will be given a $1.25 dividend. This represents a $5.00 annualized dividend and a yield of 2.47%. The ex-dividend date of this dividend is Friday, June 13th. Packaging Corporation of America’s payout ratio is currently 52.30%.

Institutional Investors Weigh In On Packaging Corporation of America

A number of institutional investors and hedge funds have recently bought and sold shares of PKG. Clearstead Trust LLC grew its stake in shares of Packaging Corporation of America by 118.6% during the 1st quarter. Clearstead Trust LLC now owns 129 shares of the industrial products company’s stock worth $26,000 after acquiring an additional 70 shares during the period. TCTC Holdings LLC raised its position in shares of Packaging Corporation of America by 86.4% in the first quarter. TCTC Holdings LLC now owns 151 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 70 shares during the period. Alpine Bank Wealth Management purchased a new position in Packaging Corporation of America in the 1st quarter valued at approximately $39,000. Geneos Wealth Management Inc. raised its holdings in Packaging Corporation of America by 40.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 198 shares of the industrial products company’s stock valued at $39,000 after acquiring an additional 57 shares during the period. Finally, Banque Cantonale Vaudoise bought a new stake in shares of Packaging Corporation of America during the first quarter valued at about $40,000. 89.78% of the stock is owned by hedge funds and other institutional investors.

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers.