Packaging Co. of America (NYSE:PKG) to Issue $1.25 Quarterly Dividend

Packaging Co. of America (NYSE:PKG) announced a quarterly dividend on Tuesday, August 27th, Wall Street Journal reports. Investors of record on Monday, September 16th will be given a dividend of 1.25 per share by the industrial products company on Tuesday, October 15th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.38%. The ex-dividend date is Monday, September 16th.

Packaging Co. of America has increased its dividend payment by an average of 14.1% annually over the last three years and has increased its dividend every year for the last 14 years. Packaging Co. of America has a dividend payout ratio of 46.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Packaging Co. of America to earn $10.49 per share next year, which means the company should continue to be able to cover its $5.00 annual dividend with an expected future payout ratio of 47.7%.

Packaging Co. of America Stock Performance

PKG opened at $210.27 on Friday. The company has a current ratio of 2.43, a quick ratio of 1.71 and a debt-to-equity ratio of 0.60. Packaging Co. of America has a 12-month low of $143.82 and a 12-month high of $211.90. The firm has a 50 day moving average of $197.12 and a two-hundred day moving average of $187.61. The firm has a market capitalization of $18.88 billion, a PE ratio of 26.28, a P/E/G ratio of 4.03 and a beta of 0.77.

Packaging Co. of America (NYSE:PKG) last issued its earnings results on Tuesday, July 23rd. The industrial products company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.14 by $0.06. The firm had revenue of $2.08 billion during the quarter, compared to analysts’ expectations of $2.02 billion. Packaging Co. of America had a net margin of 9.06% and a return on equity of 18.21%. The firm’s revenue was up 6.3% compared to the same quarter last year. During the same quarter last year, the company posted $2.31 earnings per share. On average, analysts anticipate that Packaging Co. of America will post 8.72 EPS for the current year.

Insider Buying and Selling

In other Packaging Co. of America news, EVP Charles J. Carter sold 5,389 shares of the stock in a transaction on Thursday, July 25th. The shares were sold at an average price of $196.28, for a total transaction of $1,057,752.92. Following the transaction, the executive vice president now directly owns 25,539 shares of the company’s stock, valued at $5,012,794.92. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, SVP Donald R. Shirley sold 6,000 shares of the business’s stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $196.28, for a total transaction of $1,177,680.00. Following the completion of the sale, the senior vice president now directly owns 20,772 shares in the company, valued at $4,077,128.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Charles J. Carter sold 5,389 shares of the firm’s stock in a transaction on Thursday, July 25th. The shares were sold at an average price of $196.28, for a total value of $1,057,752.92. Following the completion of the transaction, the executive vice president now owns 25,539 shares in the company, valued at approximately $5,012,794.92. The disclosure for this sale can be found here. 1.60% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

PKG has been the topic of several analyst reports. Truist Financial raised their target price on Packaging Co. of America from $215.00 to $219.00 and gave the stock a “buy” rating in a report on Thursday, July 25th. Wells Fargo & Company raised their price objective on shares of Packaging Co. of America from $194.00 to $215.00 and gave the stock an “overweight” rating in a research note on Thursday, July 25th. StockNews.com cut shares of Packaging Co. of America from a “buy” rating to a “hold” rating in a research note on Wednesday. Citigroup raised their price target on shares of Packaging Co. of America from $181.00 to $187.00 and gave the company a “neutral” rating in a research report on Monday, July 8th. Finally, Bank of America lifted their price objective on shares of Packaging Co. of America from $197.00 to $200.00 and gave the company a “buy” rating in a report on Monday, June 17th. Five analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $190.50.

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.