Packaging Co. of America (NYSE:PKG) Hits New 12-Month High – Should You Buy?

Packaging Co. of America (NYSE:PKG)’s share price hit a new 52-week high on Wednesday . The company traded as high as $248.00 and last traded at $248.00, with a volume of 5550 shares traded. The stock had previously closed at $232.61.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wells Fargo & Company lifted their target price on Packaging Co. of America from $235.00 to $253.00 and gave the stock an “overweight” rating in a report on Thursday, October 24th. StockNews.com downgraded Packaging Co. of America from a “buy” rating to a “hold” rating in a report on Friday, November 1st. Citigroup boosted their target price on Packaging Co. of America from $199.00 to $221.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 2nd. Finally, Truist Financial restated a “buy” rating and issued a $252.00 target price (up from $242.00) on shares of Packaging Co. of America in a research note on Thursday, October 24th. Four investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $221.60.

Packaging Co. of America Trading Up 3.9 %

The stock has a market cap of $21.70 billion, a P/E ratio of 28.12, a P/E/G ratio of 3.26 and a beta of 0.76. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.71 and a current ratio of 2.43. The stock has a 50-day moving average price of $215.92 and a 200-day moving average price of $196.64.

Packaging Co. of America (NYSE:PKG) last issued its earnings results on Tuesday, October 22nd. The industrial products company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.50 by $0.15. Packaging Co. of America had a return on equity of 19.35% and a net margin of 9.46%. The company had revenue of $2.18 billion during the quarter, compared to analysts’ expectations of $2.09 billion. During the same period in the prior year, the business posted $2.05 EPS. Packaging Co. of America’s quarterly revenue was up 14.9% compared to the same quarter last year. On average, equities research analysts expect that Packaging Co. of America will post 9 EPS for the current year.

Packaging Co. of America Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, September 16th. Investors of record on Tuesday, October 15th were paid a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 2.07%. The ex-dividend date of this dividend was Monday, September 16th. Packaging Co. of America’s payout ratio is currently 58.28%.

Institutional Investors Weigh In On Packaging Co. of America

Several hedge funds have recently made changes to their positions in the company. Norden Group LLC bought a new position in shares of Packaging Co. of America in the first quarter worth approximately $530,000. Private Advisor Group LLC lifted its position in shares of Packaging Co. of America by 25.5% in the first quarter. Private Advisor Group LLC now owns 8,515 shares of the industrial products company’s stock worth $1,616,000 after buying an additional 1,729 shares in the last quarter. Janney Montgomery Scott LLC raised its stake in Packaging Co. of America by 4.9% during the first quarter. Janney Montgomery Scott LLC now owns 33,532 shares of the industrial products company’s stock valued at $6,364,000 after purchasing an additional 1,566 shares in the last quarter. Tokio Marine Asset Management Co. Ltd. lifted its holdings in shares of Packaging Co. of America by 2.8% in the 1st quarter. Tokio Marine Asset Management Co. Ltd. now owns 2,160 shares of the industrial products company’s stock valued at $410,000 after acquiring an additional 59 shares during the last quarter. Finally, Fidelis Capital Partners LLC purchased a new stake in Packaging Co. of America during the 1st quarter valued at $70,000. 89.78% of the stock is currently owned by institutional investors.

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.