Bank of America Corp. Upgrades Packaging Corp. of America (PKG) to “Buy”
Packaging Corp. of America (NYSE:PKG) was upgraded by investment analysts at Bank of America Corp. from a “neutral” rating to a “buy” rating in a research note issued to investors on Tuesday, The Fly reports.
Several other brokerages have also issued reports on PKG. Zacks Investment Research lowered Packaging Corp. of America from a “buy” rating to a “hold” rating in a research report on Tuesday, June 28th. Argus reaffirmed a “buy” rating and set a $84.00 price target (up previously from $79.00) on shares of Packaging Corp. of America in a research note on Friday, September 2nd. Deutsche Bank AG raised shares of Packaging Corp. of America from a “hold” rating to a “buy” rating and set a $90.00 price target for the company in a research note on Friday, September 23rd. Credit Agricole SA lifted their price target on shares of Packaging Corp. of America from $83.00 to $95.00 and gave the company a “buy” rating in a research note on Tuesday, September 6th. Finally, Jefferies Group reaffirmed a “buy” rating on shares of Packaging Corp. of America in a research note on Tuesday, August 23rd. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the company. The company has an average rating of “Hold” and an average target price of $78.46.
Shares of Packaging Corp. of America (NYSE:PKG) opened at 83.33 on Tuesday. Packaging Corp. of America has a 52 week low of $44.32 and a 52 week high of $84.69. The firm’s 50-day moving average price is $80.57 and its 200 day moving average price is $71.68. The stock has a market capitalization of $7.78 billion, a P/E ratio of 17.70 and a beta of 1.76.
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Packaging Corp. of America (NYSE:PKG) last announced its earnings results on Thursday, July 21st. The company reported $1.25 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.18 by $0.07. Packaging Corp. of America had a return on equity of 27.74% and a net margin of 7.95%. The business earned $1.42 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the previous year, the business earned $1.18 earnings per share. The company’s revenue for the quarter was down 2.5% compared to the same quarter last year. Analysts expect that Packaging Corp. of America will post $4.82 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, October 14th. Stockholders of record on Thursday, September 15th were given a dividend of $0.63 per share. The ex-dividend date was Tuesday, September 13th. This is an increase from Packaging Corp. of America’s previous quarterly dividend of $0.55. This represents a $2.52 dividend on an annualized basis and a dividend yield of 3.02%. Packaging Corp. of America’s dividend payout ratio is presently 53.62%.
In other news, SVP Kent A. Pflederer sold 1,100 shares of the company’s stock in a transaction on Friday, July 22nd. The stock was sold at an average price of $74.30, for a total transaction of $81,730.00. Following the transaction, the senior vice president now directly owns 34,623 shares of the company’s stock, valued at $2,572,488.90. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 1.10% of the company’s stock.
Several institutional investors have recently modified their holdings of the company. Nationwide Fund Advisors increased its position in shares of Packaging Corp. of America by 3.7% in the second quarter. Nationwide Fund Advisors now owns 435,974 shares of the company’s stock worth $29,180,000 after buying an additional 15,398 shares during the last quarter. Taylor Cottrill Erickson & Associates Inc. bought a new stake in shares of Packaging Corp. of America during the second quarter worth $3,540,000. Rockshelter Capital Management LLC raised its stake in shares of Packaging Corp. of America by 33.3% in the first quarter. Rockshelter Capital Management LLC now owns 211,644 shares of the company’s stock worth $12,900,000 after buying an additional 52,861 shares during the period. TD Asset Management Inc. raised its stake in shares of Packaging Corp. of America by 22.1% in the second quarter. TD Asset Management Inc. now owns 29,800 shares of the company’s stock worth $1,995,000 after buying an additional 5,400 shares during the period. Finally, Pitcairn Co. raised its stake in shares of Packaging Corp. of America by 0.7% in the second quarter. Pitcairn Co. now owns 7,927 shares of the company’s stock worth $531,000 after buying an additional 52 shares during the period. 86.82% of the stock is currently owned by institutional investors and hedge funds.
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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