Price movement

Packaging Corporation of America (PKG) has a market cap of $7.8 billion. It rose 2.1% to close at $82.29 per share on September 23, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.8%, 9.1%, and 34.0%, respectively, on the same day. PKG is trading 3.6% above its 20-day moving average, 7.6% above its 50-day moving average, and 29.2% above its 200-day moving average.

Deutsche Bank Upgrades Packaging Corporation of America to a ‘Buy’

Related ETF and peers

The iShares Global Timber & Forestry ETF (WOOD) invests 3.8% of its holdings in PKG. The ETF tracks the 25 largest publicly listed companies that own or manage forests and timberlands. The YTD price movement of WOOD was 5.8% on September 23.

The market caps of PKG’s competitors are as follows:

  • International Paper (IP) — $19.9 billion
  • WestRock (WRK) — $12.2 billion
  • Domtar (UFS) — $2.3 billion

PKG’s rating

Deutsche Bank has upgraded Packaging Corporation of America’s rating to a “buy” from “hold.” It also increased the stock’s price target to $90 from $77 per share.

On September 22, 2016, Goldman Sachs initiated the coverage of Packaging Corporation of America’s rating to “sell” and set the stock’s price target at $77 per share.

Performance of Packaging Corporation of America in 2Q16

Packaging Corporation of America (PKG) reported 2Q16 net sales of ~$1.4 billion, a fall of 2.5% from the net sales of ~$1.5 billion in 2Q15. Sales of its Packaging and Paper segments fell 1.5% and 5.1%, respectively, between 2Q15 and 2Q16. The company’s gross profit margin and income from operations rose 3.4% and 1.3%, respectively.

Its net income and EPS (earnings per share) rose to $115.9 million and $1.23, respectively, in 2Q16, compared with $114.0 million and $1.16 in 2Q15. It reported EBITDA (earnings before interest, tax, depreciation, and amortization) excluding special items of $290.4 million in 2Q16, a rise of 1.1% from 2Q15.

PKG’s capital spending fell 20.2% and its cash balance rose 30.5% between 2Q15 and 2Q16. Next, we’ll look at ConAgra Foods (CAG).

Latest articles

President Trump tweeted about his plans to meet with Apple (AAPL) CEO Tim Cook. It's possible that they could discuss Apple’s US manufacturing plans.

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.