Packaging Corporation of America (NYSE:PKG) has a beta of 0.92, a 12-month trailing P/E ratio of 28.70, and a growth ratio of 2.20. The stock’s Relative Strength Index (RSI) is 44.24, with weekly volatility at 1.58% and ATR at 2.73. The PKG stock’s 52-week price range has touched low of $92.01 and a $156.54 high. Its shares traded lower over the last trading session, losing -2.24% on 06/02/21. The shares fell to a low of $145.61 before closing at $146.44. Intraday shares traded counted 1.26 million, which was -136.02% lower than its 30-day average trading volume of 532.48K. PKG’s previous close was $149.79 while the outstanding shares total 94.20M.
Investors have identified the Packaging & Containers company Packaging Corporation of America as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $13.98 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Packaging Corporation of America (PKG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 2.86 billion total, with 805.8 million as their total liabilities.
PKG were able to record 106.5 million as free cash flow during the 07/28/2021 quarter of the year, this saw their quarterly net cash flow reduce by 8.8 million. In cash movements, the company had a total of 191.6 million as operating cash flow.
Potential earnings growth for Packaging Corporation of America (PKG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/28/2021 quarter of the year, Packaging Corporation of America recorded a total of 1.81 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 5.45% coming in sequential stages and their sales for the 07/28/2021 quarter increasing by 5.15%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.4 billion trying to sell their products during the last quarter, with the result yielding a gross income of 403.7 million. This allows shareholders to hold on to 94.20M with the recently reported earning now reading 1.77 cents per share. This is a figure that compared to analyst’s prediction for their 07/28/2021 (1.77 cents a share).
Having a look at the company’s valuation, the company is expected to record 8.15 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PKG sounds very interesting.
Is the stock of PKG attractive?
In related news, SVP-Containerboard, Carter Charles J. sold 9,161 shares of the company’s stock in a transaction that recorded on May 11. The sale was performed at an average price of 154.57, for a total value of 1,416,016. As the sale deal closes, the SVP, Pflederer Kent A. now sold 5,000 shares of the company’s stock, valued at 677,466. Also, SVP & CIO, Schneider Robert Andrew sold 15,000 shares of the company’s stock in a deal that was recorded on Nov 24. The shares were price at an average price of 134.22 per share, with a total market value of 2,013,315. Following this completion of acquisition, the Exec. VP, Hassfurther Thomas A now holds 5,000 shares of the company’s stock, valued at 675,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.30%.
2 out of 14 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Packaging Corporation of America. 1 analysts has assigned a Sell rating on the PKG stock. The 12-month mean consensus price target for the company’s shares has been set at $144.30.