Packaging Corporation of America Q3 EPS Misses by $0.10 on $2.31B Revenue, Guides Q4 at $2.40
Packaging Corporation of America reported Q3 EPS of $2.73, missing estimates by $0.10 on $2.31B revenue that beat consensus by $20M, and set Q4 EPS guidance at $2.40. JPMorgan raised its price target to $245 and Truist to $264 while the company declared a $1.25 quarterly dividend, yielding 2.4%.
1. Institutional Investor Sells Stake
Ethic Inc. trimmed its holding in Packaging Corporation of America by 42.4% during the third quarter, according to the latest SEC filing. The firm sold 3,839 shares, reducing its position to 5,217 shares valued at approximately $1.14 million. This reduction marks one of the largest single-quarter divestitures among reported institutional repositionings in the period.
2. Other Institutional Movements
Several other asset managers also adjusted their exposure to Packaging Corporation of America in the same quarter. Dumont & Blake Investment Advisors established a new position worth about $203,000, while Henrickson Nauta Wealth Advisors added shares valued at $227,000. Perigon Wealth Management increased its stake by 8.0% to 1,389 shares ($303,000), Sowell Financial Services upped its holding by 19.6% to 1,967 shares ($429,000), and Apollon Wealth Management more than doubled its position (+105.6%) to 2,371 shares ($517,000). Hedge funds and institutional investors now own 89.78% of the company’s stock.
3. Analyst Rating Updates
Research firms have shifted their assessments in recent weeks. Wells Fargo raised its price objective from 200 to 222 and maintained an equal weight designation on October 7th. Citigroup moved its target from 214 to 218 with a neutral stance on October 6th, while Zacks Research downgraded its recommendation from hold to strong sell on December 8th. Wall Street Zen upgraded to hold from sell, and Weiss Ratings reaffirmed a buy (b–) rating. Of the nine analysts covering the company, one rates it Strong Buy, three Buy, four Hold and one Sell, resulting in a consensus rating of Hold and an average target of 230.67.
4. Financial Performance and Dividend
In its latest quarterly report, Packaging Corporation of America posted revenue of $2.31 billion, up 6.0% year-over-year, and reported EPS of 2.73, missing consensus by $0.10. The net margin stood at 10.18% with return on equity of 19.72%. For the upcoming quarter, management guided to EPS of 2.40. The company declared a quarterly dividend of $1.25 per share, payable January 14th to shareholders of record December 15th, implying an annualized dividend of $5.00 and a payout ratio of 50.56%.