Could Packaging Corp Of America See a Reversal After Today’s Strong Options Activity?

 Could Packaging Corp Of America See a Reversal After Today's Strong Options Activity?

In today’s session Packaging Corp Of America (PKG) registered an unusually high (1,016) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious PKG increase. With 1,016 contracts traded and 46954 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: PKG170120C00085000 closed last at: $2.9 or 25.6% down. The stock increased 0.06% or $0.05 on November 23, hitting $84.72. About 798,122 shares traded hands. Packaging Corp Of America (NYSE:PKG) has risen 28.99% since April 22, 2016 and is uptrending. It has outperformed by 23.58% the S&P500.

Analysts await Packaging Corp Of America (NYSE:PKG) to report earnings on January, 23. They expect $1.16 earnings per share, up 7.41% or $0.08 from last year’s $1.08 per share. PKG’s profit will be $107.21M for 18.26 P/E if the $1.16 EPS becomes a reality. After $1.30 actual earnings per share reported by Packaging Corp Of America for the previous quarter, Wall Street now forecasts -10.77% negative EPS growth.

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. $82 is the highest target while $59 is the lowest. The $73.40 average target is -13.36% below today’s ($84.72) stock price. Packaging Corporation of America has been the topic of 25 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The stock has “Market Perform” rating given by BMO Capital Markets on Tuesday, November 15. The stock of Packaging Corp Of America (NYSE:PKG) has “Neutral” rating given on Wednesday, August 31 by Citigroup. Macquarie Research downgraded the shares of PKG in a report on Monday, January 25 to “Underperform” rating. The rating was upgraded by Argus Research to “Buy” on Monday, April 25. On Thursday, September 22 the stock rating was initiated by Goldman Sachs with “Sell”. Bank of America upgraded the stock to “Buy” rating in Tuesday, October 18 report. Barclays Capital upgraded Packaging Corp Of America (NYSE:PKG) rating on Friday, January 8. Barclays Capital has “Overweight” rating and $75 price target. The rating was maintained by Barclays Capital on Monday, October 26 with “Equal Weight”. The firm earned “Neutral” rating on Monday, July 18 by Buckingham Research. The stock of Packaging Corp Of America (NYSE:PKG) has “Hold” rating given on Wednesday, August 10 by Deutsche Bank.

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 decreased to 1.05 in 2016 Q2. Its down 0.31, from 1.36 in 2016Q1. The ratio fall, 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.
Trust Invest holds 1.5% of its portfolio in Packaging Corp Of America (NYSE:PKG) for 18,995 shares. Navellier accumulated 19,192 shares or 0.19% of the stock. Southeast Asset Advisors holds 4,250 shares or 0.09% of its portfolio. Numeric Investors Ltd Co has 27,100 shares for 0.02% of their US portfolio. Skba Capital Mgmt Ltd Liability has 263,990 shares for 1.6% of their US portfolio. Stifel Fin last reported 12,980 shares in the company. Louisiana State Employees Retirement Sys holds 0.09% or 25,000 shares in its portfolio. Oppenheimer &, a New York-based fund reported 4,862 shares. Strategy Asset Managers Lc last reported 0.09% of its portfolio in the stock. Salient Cap Advsrs Ltd Co, a Texas-based fund reported 5,025 shares. Gam Holding Ag has 0.03% invested in the company for 25,172 shares. Texas Yale Cap holds 0.08% of its portfolio in Packaging Corp Of America (NYSE:PKG) for 12,472 shares. California State Teachers Retirement Sys accumulated 197,722 shares or 0.03% of the stock. Cannell Peter B & Incorporated accumulated 160,265 shares or 0.39% of the stock. Parkside State Bank Trust has 0% invested in the company for 10 shares.

Insider Transactions: Since July 22, 2016, the stock had 0 insider buys, and 2 sales for $744,490 net activity. Pflederer Kent A. sold $81,730 worth of stock. Walton Thomas W.H. also sold $662,760 worth of Packaging Corp Of America (NYSE:PKG) shares.

Packaging Corporation of America is a producer of containerboard and corrugated packaging products, and uncoated free sheet. The company has a market cap of $7.83 billion. The Firm operates through three divisions: Packaging, Paper, and Corporate and Other. It has a 18.21 P/E ratio. The Firm operates over eight mills and approximately 90 corrugated products manufacturing plants.

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.

More notable recent Packaging Corp Of America (NYSE:PKG) news were published by: Fool.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, Dailyherald.com published: “Packaging Corporation of America acquires Columbus Container” on October 12, 2016. More interesting news about Packaging Corp Of America (NYSE:PKG) were released by: Businesswire.com and their article: “Packaging Corporation of America Announces Agreement to Acquire TimBar Corporation” published on July 06, 2016 as well as Reuters.com‘s news article titled: “BRIEF-Packaging Corp of America to acquire Timbar Corp” with publication date: July 06, 2016.

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