Packaging Corporation Stock: Is Wall Street Bullish or Bearish on PKG?

Packaging Corporation of America (PKG) is the third-largest producer of containerboard and uncoated freesheet paper with a market cap of $19 billion. Shares have underperformed the broader market over the past year, rising 3.5% compared to the S&P 500 Index's 15.1% increase. Despite this, the company has outpaced the Materials Select Sector SPDR Fund's 1.3% decrease over the same period. Analysts expect PKG's adjusted EPS to grow 12.7% year-over-year to $10.19 for FY2025, with a consensus rating of "Moderate Buy" and a mean price target of $219.

Title: Packaging Corporation of America (PKG) Shareholder Activity and Analyst Ratings

Packaging Corporation of America (PKG), a leading producer of containerboard and uncoated freesheet paper, recently experienced significant changes in its shareholder base and analyst ratings. The company, with a market capitalization of $19 billion, has seen its shares underperform the broader market over the past year, rising 3.5% compared to the S&P 500 Index's 15.1% increase. However, PKG has managed to outpace the Materials Select Sector SPDR Fund's 1.3% decrease over the same period.

Martingale Asset Management L P, a notable institutional investor, reduced its stake in PKG by 54.1% during the first quarter, selling 1,900 shares and leaving it with 1,613 shares valued at approximately $319,000 [1]. This move was part of a broader trend where several institutional investors modified their holdings in PKG. MGO One Seven LLC increased its holdings by 11.8%, Two Sigma Securities LLC by 39.5%, and Coldstream Capital Management Inc. by 15.0%, among others [1]. These changes highlight the ongoing interest in the company's stock despite its recent underperformance.

Analysts have provided mixed ratings on PKG, with a consensus rating of "Moderate Buy" and a mean price target of $219. Wall Street analysts have set diverse price targets, ranging from $205.00 to $238.00, indicating a generally positive outlook [1]. Despite the mixed ratings, the company's quarterly earnings report showed strong performance, with earnings per share (EPS) of $2.48, beating the consensus estimate of $2.44 [1]. Analysts expect PKG's adjusted EPS to grow 12.7% year-over-year to $10.19 for FY2025 [1].

Additionally, PKG announced a quarterly dividend of $1.25 per share, translating to an annualized yield of 2.4% and a payout ratio of around 49.90% [1]. This dividend, scheduled to be paid on October 15, 2025, provides shareholders with a steady income stream.

In conclusion, while PKG's shares have underperformed the broader market, the company's strong earnings and positive analyst ratings suggest that it may be poised for growth. The recent changes in shareholder activity and analyst ratings indicate that investors should closely monitor the company's performance and future prospects.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-martingale-asset-management-l-p-sells-1900-shares-of-packaging-corporation-of-america-pkg-2025-08-26/