Ethic Inc trims Packaging Corp stake by 42.4%; Ascent Group cuts by 47.3%
Ethic Inc reduced its Packaging Corporation of America position by 42.4%, selling 3,839 shares to hold 5,217 shares valued at $1.137 million. Ascent Group LLC cut its stake by 47.3%, selling 5,683 shares to hold 6,338 shares valued at $1.381 million, while institutional ownership reached 89.78%.
1. Ethic Inc. Reduces Stake Significantly
During the third quarter, Ethic Inc. trimmed its position in Packaging Corporation of America by 42.4%, selling 3,839 shares and reducing its holdings to 5,217 shares. According to the latest SEC filing, the remaining position was valued at $1.137 million. This sizable reduction marks one of the largest single-fund sales disclosed in the period and reflects a strategic shift by Ethic Inc. away from industrial products exposure.
2. Broader Institutional Adjustments
Several other asset managers also rebalanced their PKG holdings during the quarter. Dumont & Blake Investment Advisors established a new position valued at $203,000, while Henrickson Nauta Wealth Advisors added shares worth $227,000. Perigon Wealth Management increased its stake by 8.0% to 1,389 shares, now worth $303,000. Sowell Financial Services lifted its holdings by 19.6% to 1,967 shares ($429,000), and Apollon Wealth Management more than doubled its allocation, acquiring 1,218 additional shares to reach 2,371 shares valued at $517,000. Collectively, institutional ownership stands at 89.78%.
3. Analysts Update Ratings and Targets
Research firms moved to adjust their guidance and recommendations. Wells Fargo raised its price objective from $200 to $222 while maintaining an equal weight recommendation. Citigroup increased its target from $214 to $218 and reaffirmed a neutral stance. UBS and Truist also lifted their targets to $230 and $264, respectively, with Truist assigning a buy rating. Conversely, Zacks Research downgraded the company from hold to strong sell. Among nine analysts covering the stock, one issues a strong buy, three issue a buy, four issue a hold and one issues a sell, resulting in a consensus hold rating and an average target of $230.67.
4. Earnings, Guidance and Dividend Outlook
In its latest quarterly report, Packaging Corporation of America posted EPS of $2.73, missing consensus estimates by $0.10, on revenue of $2.31 billion, slightly above forecasts. Net margin reached 10.18% and return on equity stood at 19.72%, with sales up 6.0% year-over-year. For the fourth quarter, management issued EPS guidance of 2.40. The board declared a quarterly dividend of $1.25 per share, payable January 14 to holders of record December 15, representing an annualized payout of $5.00 and a payout ratio of 50.56%.