Packaging Corp Of America (PKG) Rating Lowered to Sell at Zacks Investment Research

Packaging Corp Of America (NYSE:PKG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “Packaging Corporation’s fourth-quarter 2017 earnings will bear the impact of elevated annual outage costs. Escalating wood and energy costs, higher prices for certain key chemicals and rising freight costs also remain headwinds. The company also stated that e-commerce clearly has an impact in OCC collection. Further, the fourth quarter will witness seasonally lower volumes as well as a seasonally less rich mix in corrugated products. Moreover, Packaging Corporation underperformed the industry it belongs to over the past three months.”

Several other research firms have also recently weighed in on PKG. ValuEngine upgraded shares of Packaging Corp Of America from a “hold” rating to a “buy” rating in a research report on Sunday. Barclays raised their price objective on shares of Packaging Corp Of America from $108.00 to $110.00 and gave the company an “equal weight” rating in a research report on Monday, October 30th. KeyCorp restated a “hold” rating on shares of Packaging Corp Of America in a research report on Sunday, October 29th. Stephens initiated coverage on shares of Packaging Corp Of America in a research report on Tuesday, October 24th. They issued an “overweight” rating and a $130.00 price objective for the company. Finally, Deutsche Bank restated a “hold” rating and issued a $120.00 price objective (up previously from $94.00) on shares of Packaging Corp Of America in a research report on Monday, October 9th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $117.36.

Shares of Packaging Corp Of America (NYSE:PKG) traded up $2.10 during trading on Tuesday, reaching $128.08. 1,065,451 shares of the company’s stock were exchanged, compared to its average volume of 921,717. The company has a current ratio of 2.45, a quick ratio of 1.49 and a debt-to-equity ratio of 1.30. Packaging Corp Of America has a 12-month low of $84.68 and a 12-month high of $129.15. The company has a market cap of $12,080.00, a P/E ratio of 23.72, a PEG ratio of 2.22 and a beta of 1.81.

Packaging Corp Of America (NYSE:PKG) last released its quarterly earnings data on Wednesday, October 25th. The industrial products company reported $1.68 EPS for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.01). Packaging Corp Of America had a return on equity of 29.38% and a net margin of 8.18%. The business had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same period in the previous year, the business posted $1.30 earnings per share. Packaging Corp Of America’s revenue was up 10.5% on a year-over-year basis. analysts forecast that Packaging Corp Of America will post 5.99 earnings per share for the current year.

In other news, SVP Charles J. Carter sold 6,150 shares of the business’s stock in a transaction on Friday, October 27th. The shares were sold at an average price of $117.04, for a total value of $719,796.00. Following the sale, the senior vice president now owns 24,265 shares of the company’s stock, valued at $2,839,975.60. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP Thomas W.H. Walton sold 6,027 shares of the business’s stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $116.15, for a total transaction of $700,036.05. Following the completion of the sale, the senior vice president now directly owns 32,690 shares in the company, valued at approximately $3,796,943.50. The disclosure for this sale can be found here. In the last ninety days, insiders sold 67,177 shares of company stock worth $1,427,532. Insiders own 1.20% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. Assenagon Asset Management S.A. acquired a new position in Packaging Corp Of America during the third quarter worth $14,544,000. First Eagle Investment Management LLC increased its holdings in Packaging Corp Of America by 17.9% during the third quarter. First Eagle Investment Management LLC now owns 2,100,096 shares of the industrial products company’s stock worth $240,839,000 after buying an additional 319,452 shares during the last quarter. State Street Corp increased its holdings in shares of Packaging Corp Of America by 1.0% in the second quarter. State Street Corp now owns 3,336,381 shares of the industrial products company’s stock valued at $371,683,000 after purchasing an additional 31,624 shares during the last quarter. Morse Asset Management Inc increased its holdings in shares of Packaging Corp Of America by 20.3% in the third quarter. Morse Asset Management Inc now owns 5,922 shares of the industrial products company’s stock valued at $679,000 after purchasing an additional 1,000 shares during the last quarter. Finally, TIAA CREF Investment Management LLC increased its holdings in shares of Packaging Corp Of America by 23.5% in the second quarter. TIAA CREF Investment Management LLC now owns 565,067 shares of the industrial products company’s stock valued at $62,943,000 after purchasing an additional 107,348 shares during the last quarter. 89.96% of the stock is currently owned by institutional investors and hedge funds.

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About Packaging Corp Of America

Packaging Corporation of America (PCA) is a producer of containerboard products and uncoated freesheet. The Company operates through three segments: Packaging, Paper, and Corporate and Other. The Packaging segment produces a range of corrugated packaging products. The Paper segment manufactures and sells a range of papers, including communication-based papers and pressure sensitive papers.

Analyst Recommendations for Packaging Corp Of America (NYSE:PKG)

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