Packaging Co. of America (NYSE:PKG) Hits New 1-Year High After Earnings Beat

Packaging Co. of America (NYSE:PKG)’s share price hit a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $229.91 and last traded at $227.00, with a volume of 39973 shares changing hands. The stock had previously closed at $216.66.

The industrial products company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.50 by $0.15. Packaging Co. of America had a net margin of 9.46% and a return on equity of 19.35%. The firm had revenue of $2.18 billion during the quarter, compared to analysts’ expectations of $2.09 billion. During the same quarter last year, the company posted $2.05 earnings per share. The firm’s revenue was up 14.9% compared to the same quarter last year.

Packaging Co. of America Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 16th. Investors of record on Tuesday, October 15th were given a dividend of $1.25 per share. The ex-dividend date of this dividend was Monday, September 16th. This represents a $5.00 annualized dividend and a yield of 2.20%. Packaging Co. of America’s dividend payout ratio is presently 58.28%.

Wall Street Analyst Weigh In

Several research firms recently commented on PKG. Citigroup raised their price target on shares of Packaging Co. of America from $199.00 to $221.00 and gave the company a “neutral” rating in a research report on Wednesday, October 2nd. Truist Financial restated a “buy” rating and set a $252.00 price target (up previously from $242.00) on shares of Packaging Co. of America in a research report on Thursday. StockNews.com upgraded shares of Packaging Co. of America from a “hold” rating to a “buy” rating in a research report on Tuesday. Finally, Wells Fargo & Company raised their price target on shares of Packaging Co. of America from $235.00 to $253.00 and gave the company an “overweight” rating in a research report on Thursday. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, Packaging Co. of America has an average rating of “Moderate Buy” and an average target price of $221.60.

Institutional Trading of Packaging Co. of America

Several institutional investors have recently modified their holdings of PKG. Register Financial Advisors LLC acquired a new stake in shares of Packaging Co. of America in the first quarter valued at about $25,000. Asset Dedication LLC boosted its position in Packaging Co. of America by 200.0% during the second quarter. Asset Dedication LLC now owns 168 shares of the industrial products company’s stock worth $31,000 after acquiring an additional 112 shares during the last quarter. Central Pacific Bank Trust Division acquired a new position in Packaging Co. of America during the third quarter worth about $32,000. Tortoise Investment Management LLC acquired a new position in Packaging Co. of America during the second quarter worth about $33,000. Finally, Headlands Technologies LLC acquired a new position in Packaging Co. of America during the first quarter worth about $43,000. Institutional investors and hedge funds own 89.78% of the company’s stock.

Packaging Co. of America Stock Down 0.5 %

The stock has a market capitalization of $20.43 billion, a price-to-earnings ratio of 26.52, a price-to-earnings-growth ratio of 4.24 and a beta of 0.77. The business’s 50-day moving average is $211.45 and its two-hundred day moving average is $193.93. The company has a quick ratio of 1.71, a current ratio of 2.43 and a debt-to-equity ratio of 0.60.

About Packaging Co. of America

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States. The company operates through three segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers various containerboard and 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, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products.