The Vanguard Group, Inc. recently announced the acquisition of new stake in Packaging Corporation of America (NYSE:PKG). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.34% to 10.84 million shares with purchase of 36607.0 shares. This fresh investment now brings its stake to 11.43% valued currently at $1.08 billion. In addition, T. Rowe Price Associates, Inc. (I. raised its holdings by 1.9 million to 7.68 million shares. And Capital Research & Management Co. has lifted its position by 5.01% or 0.23 million shares – to 4.78 million shares.
With over 0.45 million Packaging Corporation of America (PKG) shares trading Tuesday and a closing price of $104.12 on the day, the dollar volume was approximately $47.37 million. The shares have shown a positive weekly performance of 1.96% and its price on 07/21/20 gained nearly 0.39%. Currently, there are 93.90M common shares owned by the public and among those 93.29M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for PKG have a consensus price objective of $98.82. The analysts have set the share’s price value over the next 12 months at a high of $120.00 and a low of $79.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Packaging Corporation of America stock is 2.90 for the next 12 months. The average price target is -7.04% below its last price level and a downside to the estimated low will see the stock lose -31.8% over that period. But an upside of 13.23% will see the stock hit the forecast high price target while mean target price for the stock is $100.00.
Insiders at the company have transacted a total of 52 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 34 of these insider trades were purchases, accounting for 151,870 shares. Insider sales of the common stock occurred on 18 occasions, with total insider shares sold totaling 98,007 shares.
The top 3 mutual fund holders in Packaging Corporation of America are T Rowe Price Value Fund, American Funds Income Fund of Ame, and Vanguard Total Stock Market Index. T Rowe Price Value Fund owns 2.98 million shares of the company’s stock, all valued at over $297.43 million. The company bought an additional 0.23 million shares recently to bring their total holdings to about 3.14% of the shares outstanding. American Funds Income Fund of Ame bought 0.69 million shares to see its total holdings expand to 2.85 million shares valued at over $284.69 million and representing 3.01% of the shares outstanding. Vanguard Total Stock Market Index sold 30001.0 shares to bring its total holdings to over 2.7 million shares at a value of $269.66 million. Vanguard Total Stock Market Index now owns shares totaling to 2.85% of the shares outstanding.
Shares of Packaging Corporation of America (NYSE: PKG) opened at $103.68, down -$0.04 from a prior closing price of $103.72. However, the script later closed the day at $104.12, up 0.39%. The company’s stock has a 5-day price change of 1.96% and 21.52% over the past three months. PKG shares are trading -7.03% year to date (YTD), with the 12-month market performance up to 4.69% higher. It has a 12-month low price of $71.05 and touched a high of $114.78 over the same period. Currently, 0.45 million shares have been traded, compared to an average intraday trading volume of 739.94K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.47%, 4.60%, and 3.25% respectively.
Institutional ownership of Packaging Corporation of America (NYSE: PKG) shares accounts for 93.20% of the company’s 93.90M shares outstanding. Mutual fund holders own 34.50%, while other institutional holders and individual stakeholders account for 57.24% and 1.94% respectively.
It has a market capitalization of $10.10B and a beta (3y monthly) value of 1.27. The stock’s trailing 12-month PE ratio is 15.17, while the earnings-per-share (ttm) stands at $6.86. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.78% over the week and 2.67% over the month.
Analysts forecast that Packaging Corporation of America (PKG) will achieve an EPS of $1.27 for the current quarter, $1.36 for the next quarter and $5.26 for 2021. The lowest estimate earnings-per-share for the quarter is $1.21 while analysts give the company a high EPS estimate of $1.37. Comparatively, EPS for the current quarter was $2.04 a year ago. Earnings per share for the fiscal year are expected to decrease by -5.60%, and -3.52% over the next financial year. EPS should shrink at an annualized rate of -10.43% over the next five years, compared to 13.00% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Packaging Corporation of America (PKG) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 8 of the 14 advise that investors “hold,” and 2 rated it as a “Sell.”
Looking at the support for the PKG, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on July 16, 2020, with the firm’s price target at. Morgan Stanley coverage for the Packaging Corporation of America (PKG) stock in a research note released on June 15, 2020 offered a Equal-Weight rating with a price target of $93. Argus was of a view on May 14, 2020 that the stock is Buy, while Argus gave the stock Hold rating on April 20, 2020, issuing a price target of. Argus on their part issued Buy rating on March 19, 2020.