Packaging Corporation of America (NYSE: PKG) has received an average price target of $236.17 from eight research firms currently covering the stock, according to Marketbeat Ratings. The consensus rating is classified as a “Moderate Buy,” with four analysts recommending a hold and four advising a buy.
Recent reports highlight various adjustments made by analysts regarding the stock. For instance, Wall Street Zen upgraded the rating from “sell” to “hold” on January 3, 2024. Similarly, Citigroup revised its price target from $229.00 to $226.00 while maintaining a “neutral” stance in a note dated January 6, 2024. On the same day, Zacks Research also elevated its rating from “strong sell” to “hold.” Meanwhile, UBS Group raised their price target from $230.00 to $235.00 and confirmed a “neutral” rating on January 12, 2024.
Recent Earnings Report and Dividend Announcement
Packaging Corporation of America released its latest earnings results on October 22, 2023. The company reported earnings per share (EPS) of $2.73 for the quarter, falling short of the consensus estimate of $2.83 by $0.10. Despite this, the company achieved a revenue of $2.31 billion, surpassing analysts’ expectations of $2.29 billion. This represented a 6% increase in revenue compared to the same quarter the previous year, although the EPS was slightly down from $2.65 for the same period in 2022.
In addition, the company declared a quarterly dividend of $1.25, which was distributed to shareholders on January 14, 2024. Shareholders of record as of December 15, 2023 received this payout, which translates to an annualized dividend of $5.00 and a yield of 2.3%. The current payout ratio stands at approximately 50.56%.
Institutional Investor Activity
Recent modifications in holdings by institutional investors and hedge funds have also been significant. Cornerstone Planning Group LLC increased its stake in the company by 105.4% during the third quarter, now owning 115 shares valued at $25,000. Other notable transactions include KERR FINANCIAL PLANNING Corp acquiring a new stake valued at about $31,000 and Trust Co. of Toledo NA OH, which purchased a new position worth approximately $33,000.
In total, institutional investors control 89.78% of Packaging Corporation of America’s stock, which underscores the confidence in the company’s operational and financial prospects.
Packaging Corporation of America is headquartered in Lake Forest, Illinois, and is a prominent manufacturer of containerboard and corrugated packaging products. The company serves various industries, including e-commerce, grocery, food and beverage, and consumer packaged goods, by offering a diverse range of paper-based packaging solutions.
