Packaging Corp Of America (PKG) Upgraded by Zacks Investment Research to Buy

Zacks Investment Research upgraded shares of Packaging Corp Of America (NYSE:PKG) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning. They currently have $129.00 target price on the industrial products company’s stock.

According to Zacks, “Packaging Corporation expects that its second-quarter 2018 earnings will be $1.96 per share, reflecting 29% year-over-year growth. It expects demand in Packaging segment to remain strong in the second quarter, resulting in higher corrugated products and containerboard shipments. Packaging Corporation will also benefit from price increases, improved activities in the Wallula mill, and growth in e-commerce. Lower tax rate will also aid results. The stock has outperformed the industry it belongs to in a year’s time.”

A number of other equities analysts have also recently weighed in on PKG. KeyCorp restated a hold rating on shares of Packaging Corp Of America in a research report on Wednesday, April 25th. Citigroup reduced their price objective on shares of Packaging Corp Of America from $136.00 to $123.00 and set a neutral rating for the company in a research report on Thursday, April 5th. Seven investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The stock presently has an average rating of Buy and a consensus price target of $128.67.

Packaging Corp Of America opened at $111.79 on Tuesday, according to Marketbeat. The company has a quick ratio of 1.58, a current ratio of 2.72 and a debt-to-equity ratio of 1.10. Packaging Corp Of America has a 1 year low of $105.81 and a 1 year high of $131.13. The firm has a market capitalization of $10.64 billion, a P/E ratio of 18.57, a PEG ratio of 1.70 and a beta of 1.80.

Packaging Corp Of America (NYSE:PKG) last posted its earnings results on Tuesday, April 24th. The industrial products company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.02. Packaging Corp Of America had a net margin of 10.48% and a return on equity of 28.10%. The firm had revenue of $1.69 billion during the quarter, compared to analysts’ expectations of $1.64 billion. During the same period in the previous year, the business posted $1.27 EPS. The business’s revenue was up 10.0% compared to the same quarter last year. equities research analysts forecast that Packaging Corp Of America will post 7.96 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 13th. Shareholders of record on Friday, June 15th will be given a dividend of $0.79 per share. The ex-dividend date is Thursday, June 14th. This is a boost from Packaging Corp Of America’s previous quarterly dividend of $0.63. This represents a $3.16 dividend on an annualized basis and a yield of 2.83%. Packaging Corp Of America’s dividend payout ratio is currently 52.49%.

In other Packaging Corp Of America news, Director Paul T. Stecko sold 566 shares of the company’s stock in a transaction on Tuesday, June 5th. The shares were sold at an average price of $120.94, for a total transaction of $68,452.04. Following the completion of the transaction, the director now directly owns 69,077 shares in the company, valued at $8,354,172.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.20% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. MD Sass Investors Services Inc. purchased a new stake in shares of Packaging Corp Of America during the fourth quarter worth $27,191,000. Amundi Pioneer Asset Management Inc. grew its holdings in shares of Packaging Corp Of America by 26.6% during the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 180,897 shares of the industrial products company’s stock worth $21,807,000 after buying an additional 38,042 shares in the last quarter. Financial Gravity Companies Inc. purchased a new stake in shares of Packaging Corp Of America during the fourth quarter worth $378,000. Deutsche Bank AG grew its holdings in shares of Packaging Corp Of America by 3.6% during the fourth quarter. Deutsche Bank AG now owns 235,020 shares of the industrial products company’s stock worth $28,328,000 after buying an additional 8,252 shares in the last quarter. Finally, Brandywine Global Investment Management LLC grew its holdings in shares of Packaging Corp Of America by 117,937.7% during the fourth quarter. Brandywine Global Investment Management LLC now owns 81,446 shares of the industrial products company’s stock worth $9,819,000 after buying an additional 81,377 shares in the last quarter. 86.61% of the stock is owned by institutional investors and hedge funds.

About Packaging Corp Of America

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States. The company's Packaging segment offers various corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products.

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