Packaging Corporation of America (NYSE:PKG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “Packaging Corporation’s top and bottom lines improved year over year in third-quarter 2017. Sales beat the Zacks Consensus Estimate, however earnings missed the Consensus mark. The company expects fourth-quarter earnings to be $1.50 per share which will be 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. Further, the fourth quarter will witness seasonally lower volumes as well as a seasonally less rich mix in corrugated products. However, Packaging Corporation expects packaging segment demand to remain strong in fourth-quarter 2017 compared to the third quarter. The company will also gain from the Sacramento Container acquisition. Growth in the e-commerce and progress in DeRidder mill will also drive growth. Packaging Corporation outperformed the industry it belongs to over the past year.”

Several other research firms have also recently weighed in on PKG. Deutsche Bank AG reaffirmed a “hold” rating and set a $120.00 target price (up previously from $94.00) on shares of Packaging Corporation of America in a research note on Monday, October 9th. BidaskClub cut Packaging Corporation of America from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, July 19th. Stephens initiated coverage on Packaging Corporation of America in a research note on Tuesday, October 24th. They set an “overweight” rating and a $130.00 target price on the stock. BMO Capital Markets reaffirmed an “outperform” rating and set a $122.00 target price (up previously from $118.00) on shares of Packaging Corporation of America in a research note on Tuesday, August 22nd. Finally, Wells Fargo & Company cut Packaging Corporation of America from an “outperform” rating to a “market perform” rating in a research note on Monday, July 10th. Eight analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $117.36.

Shares of Packaging Corporation of America (NYSE PKG) opened at 116.27 on Monday. The company has a 50 day moving average of $116.74 and a 200 day moving average of $108.98. Packaging Corporation of America has a 52-week low of $78.03 and a 52-week high of $120.75. The firm has a market capitalization of $10.89 billion, a PE ratio of 22.40 and a beta of 1.83.

Packaging Corporation of America (NYSE:PKG) last released its earnings results on Wednesday, October 25th. The industrial products company reported $1.68 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.69 by ($0.01). Packaging Corporation of America had a net margin of 8.18% and a return on equity of 29.38%. The business had revenue of $1.64 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same period last year, the firm earned $1.30 EPS. The company’s revenue was up 10.5% compared to the same quarter last year. On average, analysts anticipate that Packaging Corporation of America will post $5.99 earnings per share for the current fiscal year.

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In other Packaging Corporation of America news, SVP Charles J. Carter sold 6,150 shares of the company’s stock in a transaction that occurred on Friday, October 27th. The stock was sold at an average price of $117.04, for a total transaction of $719,796.00. Following the completion of 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Thomas A. Hassfurther sold 6,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 12th. The stock was sold at an average price of $117.94, for a total value of $707,640.00. Following the sale, the vice president now directly owns 155,071 shares of the company’s stock, valued at approximately $18,289,073.74. The disclosure for this sale can be found here. Insiders own 1.20% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. State Board of Administration of Florida Retirement System boosted its position in Packaging Corporation of America by 2.1% during the third quarter. State Board of Administration of Florida Retirement System now owns 143,506 shares of the industrial products company’s stock worth $16,457,000 after purchasing an additional 3,005 shares during the period. Morse Asset Management Inc lifted its holdings in shares of Packaging Corporation of America by 20.3% during the third quarter. Morse Asset Management Inc now owns 5,922 shares of the industrial products company’s stock worth $679,000 after buying an additional 1,000 shares during the last quarter. Syntal Capital Partners LLC lifted its holdings in shares of Packaging Corporation of America by 28.3% during the third quarter. Syntal Capital Partners LLC now owns 2,717 shares of the industrial products company’s stock worth $313,000 after buying an additional 600 shares during the last quarter. Dupont Capital Management Corp lifted its holdings in shares of Packaging Corporation of America by 4.1% during the third quarter. Dupont Capital Management Corp now owns 16,043 shares of the industrial products company’s stock worth $1,840,000 after buying an additional 633 shares during the last quarter. Finally, Palisade Capital Management LLC NJ lifted its holdings in shares of Packaging Corporation of America by 1.9% during the third quarter. Palisade Capital Management LLC NJ now owns 157,199 shares of the industrial products company’s stock worth $18,028,000 after buying an additional 2,909 shares during the last quarter. 88.42% of the stock is owned by hedge funds and other institutional investors.

About Packaging Corporation 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 Corporation of America (NYSE:PKG)

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