Packaging Co. of America (NYSE:PKG) Shares Gap Down Following Weak Earnings

Packaging Co. of America (NYSE:PKG - Get Free Report) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $238.41, but opened at $220.10. Packaging Co. of America shares last traded at $219.30, with a volume of 299,132 shares traded.

The industrial products company reported $2.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.51 by ($0.04). Packaging Co. of America had a return on equity of 19.10% and a net margin of 9.46%.

Packaging Co. of America Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 15th. Investors of record on Friday, December 20th were given a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 2.33%. The ex-dividend date was Friday, December 20th. Packaging Co. of America's dividend payout ratio (DPR) is 58.28%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on PKG shares. Citigroup upped their target price on shares of Packaging Co. of America from $232.00 to $235.00 and gave the company a "neutral" rating in a research note on Monday, January 6th. Wells Fargo & Company lowered their target price on shares of Packaging Co. of America from $253.00 to $236.00 and set an "overweight" rating on the stock in a research note on Thursday. Jefferies Financial Group upgraded shares of Packaging Co. of America from a "hold" rating to a "buy" rating and increased their price objective for the stock from $215.00 to $280.00 in a research note on Wednesday, December 18th. StockNews.com cut shares of Packaging Co. of America from a "buy" rating to a "hold" rating in a research note on Wednesday. Finally, Truist Financial reiterated a "buy" rating and issued a $265.00 price objective (down previously from $282.00) on shares of Packaging Co. of America in a research note on Thursday. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $233.00.

Insiders Place Their Bets

In other Packaging Co. of America news, Director Paul T. Stecko sold 10,500 shares of the stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $244.91, for a total transaction of $2,571,555.00. Following the completion of the sale, the director now directly owns 8,881 shares of the company's stock, valued at $2,175,045.71. This trade represents a 54.18 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Joseph Vaughn sold 2,300 shares of the stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $244.89, for a total transaction of $563,247.00. Following the sale, the senior vice president now directly owns 9,197 shares of the company's stock, valued at approximately $2,252,253.33. This trade represents a 20.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 33,300 shares of company stock worth $8,064,152. Company insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Packaging Co. of America

Institutional investors have recently added to or reduced their stakes in the stock. Sanctuary Advisors LLC grew its holdings in shares of Packaging Co. of America by 17.0% in the third quarter. Sanctuary Advisors LLC now owns 20,270 shares of the industrial products company's stock valued at $4,366,000 after purchasing an additional 2,946 shares in the last quarter. Principal Financial Group Inc. grew its holdings in shares of Packaging Co. of America by 8.4% in the third quarter. Principal Financial Group Inc. now owns 460,518 shares of the industrial products company's stock valued at $99,194,000 after purchasing an additional 35,614 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. grew its holdings in shares of Packaging Co. of America by 227.5% in the third quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 32,243 shares of the industrial products company's stock valued at $6,945,000 after purchasing an additional 22,397 shares in the last quarter. Citigroup Inc. grew its holdings in shares of Packaging Co. of America by 30.7% in the third quarter. Citigroup Inc. now owns 115,005 shares of the industrial products company's stock valued at $24,772,000 after purchasing an additional 27,018 shares in the last quarter. Finally, GAMMA Investing LLC grew its holdings in shares of Packaging Co. of America by 24.2% in the fourth quarter. GAMMA Investing LLC now owns 2,431 shares of the industrial products company's stock valued at $547,000 after purchasing an additional 473 shares in the last quarter. 89.78% of the stock is owned by hedge funds and other institutional investors.

Packaging Co. of America Stock Performance

The business's fifty day moving average is $235.31 and its two-hundred day moving average is $220.05. The company has a quick ratio of 1.98, a current ratio of 2.95 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $19.24 billion, a PE ratio of 24.97, a price-to-earnings-growth ratio of 2.36 and a beta of 0.79.

About Packaging Co. of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers.