Stock of the Day: Will Packaging Corp Of America Run Out of Steam Soon?

Stock of the Day: Will Packaging Corp Of America Run Out of Steam Soon?

The stock of Packaging Corp Of America (NYSE:PKG) hit a new 52-week high and has $119.46 target or 39.00% above today’s $85.94 share price. The 8 months bullish chart indicates low risk for the $8.09 billion company. The 1-year high was reported on Nov, 16 by Barchart.com. If the $119.46 price target is reached, the company will be worth $3.16B more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 122,523 shares traded hands. Packaging Corp Of America (NYSE:PKG) has risen 40.42% since April 14, 2016 and is uptrending. It has outperformed by 35.73% the S&P500.

Packaging Corp Of America (NYSE:PKG) Ratings Coverage

Out of 11 analysts covering Packaging Corporation of America (NYSE:PKG), 4 rate it a “Buy”, 2 “Sell”, while 5 “Hold”. This means 36% are positive. Packaging Corporation of America has been the topic of 24 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The firm has “Outperform” rating given on Thursday, July 23 by BMO Capital Markets. On Wednesday, August 10 the stock rating was maintained by Deutsche Bank with “Hold”. Citigroup maintained the stock with “Neutral” rating in Tuesday, July 19 report. On Monday, July 18 the stock rating was downgraded by Buckingham Research to “Neutral”. The company was upgraded on Monday, April 25 by Argus Research. Citigroup maintained the shares of PKG in a report on Wednesday, August 31 with “Neutral” rating. Bank of America downgraded the shares of PKG in a report on Tuesday, September 15 to “Neutral” rating. Dundee Securities downgraded Packaging Corp Of America (NYSE:PKG) on Monday, April 11 to “Neutral” rating. The firm has “Neutral” rating given on Tuesday, November 10 by Macquarie Research. The firm has “Buy” rating by Bank of America given on Tuesday, October 18.

According to Zacks Investment Research, “Packaging Corp. of America is one of the largest producers of containerboard in the United States and also one of the largest manufacturers of corrugated packaging products. The company produces corrugated containers as well as the containerboard used to manufacture corrugated containers. Corrugated containers are the most commonly used type of paper packaging. Corrugated containers, referred to as cardboard boxes, are made by combining multiple layers of heavyweight paper known as containerboard and fabricating them into finished boxes.”

Insitutional Activity: The institutional sentiment increased to 1.36 in Q2 2016. Its up 0.21, from 1.15 in 2016Q1. The ratio improved, as 32 funds sold all Packaging Corp Of America shares owned while 119 reduced positions. 66 funds bought stakes while 140 increased positions. They now own 78.73 million shares or 5.59% less from 83.40 million shares in 2016Q1.
Moreover, Citigroup has 0% invested in Packaging Corp Of America (NYSE:PKG) for 27,605 shares. Adams Natural Resource Fund has 0.87% invested in the company for 82,400 shares. Cibc Mkts, a Ontario – Canada-based fund reported 4,623 shares. First Eagle Investment Mgmt Ltd Company reported 1.25 million shares or 0.21% of all its holdings. Geode Cap Mgmt Limited Liability Corporation holds 0.02% of its portfolio in Packaging Corp Of America (NYSE:PKG) for 650,239 shares. Allianz Asset Ag holds 0.02% of its portfolio in Packaging Corp Of America (NYSE:PKG) for 542,948 shares. Mitsubishi Ufj Tru Banking Corp owns 217,681 shares or 0.03% of their US portfolio. Palisade Cap Mngmt Ltd Liability Corp Nj, a New Jersey-based fund reported 149,349 shares. The Pennsylvania-based Glenmede Trust Na has invested 0.15% in Packaging Corp Of America (NYSE:PKG). Lsv Asset Mgmt has 2.84 million shares for 0.39% of their US portfolio. Hotchkis And Wiley Cap Mgmt Ltd Llc, a California-based fund reported 875,622 shares. Bb&T Limited Com has 10,313 shares for 0.01% of their US portfolio. Walleye Trading Llc holds 301 shares or 0% of its portfolio. Moreover, Edge Asset Mngmt Incorporated has 0.19% invested in Packaging Corp Of America (NYSE:PKG) for 312,705 shares. Caisse De Depot Et Placement Du Quebec last reported 29,800 shares in the company.

Insider Transactions: Since July 22, 2016, the stock had 0 buys, and 2 selling transactions for $744,490 net activity. On Friday, July 22 Walton Thomas W.H. sold $662,760 worth of the stock or 9,000 shares. $81,730 worth of Packaging Corp Of America (NYSE:PKG) shares were sold by Pflederer Kent A..

More notable recent Packaging Corp Of America (NYSE:PKG) news were published by: Foxbusiness.com which released: “Packaging Corporation of America Downgraded: What You Need to Know” on November 15, 2016, also Reuters.com with their article: “BRIEF-Packaging Corp Of America to acquire Columbus Container Inc” published on October 11, 2016, Businesswire.com published: “Packaging Corporation of America Announces Agreement to Acquire TimBar Corporation” on July 06, 2016. More interesting news about Packaging Corp Of America (NYSE:PKG) were released by: Therealdeal.com and their article: “Miami warehouses included in large industrial merger” published on September 08, 2016 as well as Seekingalpha.com‘s news article titled: “Packaging Corp of America’s (PKG) CEO Mark Kowlzan on Q3 2016 Results …” with publication date: October 20, 2016.

PKG Company Profile

Packaging Corporation of America (PCA), incorporated on January 25, 1999, is a producer of containerboard and corrugated packaging products, and uncoated free sheet. The Firm operates through three divisions: Packaging, Paper, and Corporate and Other. The Firm operates over eight mills and approximately 90 corrugated products manufacturing plants. It operates primarily in the United States and has converting and distribution activities in Canada.

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