Packaging Corporation of America (PKG)

Over the past six months, Packaging Corporation of America's stock (PKG) has experienced a decline of 16.92%. In the last month alone, the stock was down 2.28%. Recent analyst actions include Jefferies downgrading its outlook for PKG from Buy to Hold on June 16, 2025, and UBS initiating coverage with a Neutral recommendation on June 4, 2025. Conversely, Truist Securities maintained a Buy rating on June 17, 2025, and raised its target price to $239 on June 18, 2025. For the first quarter of 2025, reported on April 23, 2025, the Packaging segment saw a 9.6% year-over-year growth, contributing to an 8.2% increase in consolidated top-line revenue to $2.24 billion, surpassing estimates. Adjusted earnings per share (EPS) for Q1 2025 jumped to $2.31, beating consensus estimates. The fourth-quarter 2024 earnings, reported on January 28, 2025, showed net income of $221 million ($2.45 per share) and net sales of $2.1 billion. The Packaging segment achieved record fourth-quarter shipments and an all-time record for shipments per day. However, the stock plunged 9.8% after the Q4 results due to an EPS miss and cautious guidance. Third-quarter 2024 earnings, reported on October 23, 2024, revealed an adjusted EPS of $2.65, exceeding the estimate of $2.49. Net sales reached $2.18 billion, a 13% year-over-year increase, also surpassing estimates. Several Senior Vice Presidents and Executive Vice Presidents were awarded shares on April 4, 2025. Moody's Ratings upgraded PKG's senior unsecured ratings from Baa2 to Baa1 on May 19, 2025, and revised the outlook from positive to stable, reflecting the company's strong performance and financial policy.

Demand for Packaging Corporation of America's products exhibits some seasonality. The Paper segment typically experiences a seasonally stronger third quarter, with sales volume decreasing in the fourth quarter. Demand in the Packaging segment remained very strong in the fourth quarter of 2024, with corrugated shipments per day continuing to strengthen. Total shipments in the corrugated business can be impacted by factors such as fewer shipping days and weather events. The company's profitability is also influenced by the cyclical nature of the paper industry and fluctuations in raw material costs. The growing e-commerce sector is a significant driver of increased demand for packaging solutions.

Packaging Corporation of America (PKG) is a prominent American manufacturing company specializing in the production of containerboard, corrugated packaging products, and uncoated freesheet (UFS) paper products. The company operates within the Basic Materials sector, specifically in the Containers & Packaging industry. PKG's major product offerings include a diverse range of corrugated packaging, such as conventional shipping containers, multi-color boxes and displays for retail, honeycomb protective packaging, and specialized packaging for various industrial and consumer goods like meat, fresh fruit and vegetables, processed food, and beverages. In its Paper segment, the company manufactures and sells commodity and specialty papers, including communication papers, cut-size office papers, printing and converting papers, and white papers. Packaging Corporation of America is recognized for its commitment to sustainable practices, increasingly incorporating recycled materials into its production processes and aiming to reduce its environmental footprint.

Packaging Corporation of America primarily conducts its operations within the United States. The company's manufacturing network in North America includes 14 containerboard mills and 93 corrugated product plants. As of 2024, PKG operates 94 manufacturing facilities across the United States. While its international presence is limited, with 92.4% of its revenue generated from the United States, 5.6% from Canada, and 2% from other international markets, the company did establish a design center and project-management facility in Hong Kong in 2009, operating under the name Packaging Corporation of Asia Limited.

Information regarding specific events that have significantly impacted Packaging Corporation of America's brand reputation in the past year is not readily available. The company is generally perceived as a strong player in the packaging industry, with a focus on sustainable practices and operational efficiency. Analyst ratings indicate a "Moderate Buy" consensus, suggesting a generally positive outlook from the financial community.

Packaging Corporation of America's ownership is predominantly institutional, with 89.58% held by institutional shareholders. Insiders hold 83.10% of the company's stock, while retail investors hold 0.00%. Major institutional owners include Vanguard Group Inc., BlackRock Inc., State Street Corp., Charles Schwab Investment Management Inc., JPMorgan Chase & Co., Geode Capital Management LLC, Price T Rowe Associates Inc. /md/, and SCHD - Schwab U.S. Dividend Equity ETF. Among the largest individual and insider shareholders are Madison Dearborn Partners LLC (26.82%), Thomas S. Souleles (24.84%), PCA Holdings LLC (24.20%), and Samuel M. Mencoff (3.17%). While insiders have sold more shares than they have bought over the past 12 months, there have been no insider sales or purchases in the last three months.