Should I Buy PKG? PKG 2026 Analysis

Should You Buy Packaging Corp of America (PKG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

220.210

1 Day change

1.19%

52 Week Range

231.120

Analysis Updated At

2026/01/26

Packaging Corp of America (PKG) is not a strong buy for a beginner, long-term investor at this moment. While the stock has some positive catalysts, such as a planned price increase and bullish technical indicators, the financial performance shows declining net income, EPS, and gross margin. Insider selling and Congress trading data also indicate caution. The options data suggests a lack of strong bullish sentiment. Given the user's impatience and unwillingness to wait for optimal entry points, holding off on buying is recommended until clearer positive trends emerge.

Technical Analysis

The technical indicators are moderately bullish. The MACD is positive and expanding, and the moving averages show a bullish alignment (SMA_5 > SMA_20 > SMA_200). The RSI is neutral at 71.742, and the stock is trading near its first resistance level (R1: 225.722). However, the stock is not showing a strong breakout signal.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The options data indicates a low put-call ratio for volume, suggesting limited bearish sentiment, but overall trading activity is not exceptionally bullish. Implied volatility is high (IV Percentile: 80), which could indicate uncertainty.

Technical Summary

Sell

Buy

Positive Catalysts

Planned price increase of $70 per ton effective March 1, which could improve profit margins.
Bullish technical indicators, including MACD and moving averages.
Some analysts have upgraded the stock, with price targets as high as $273.

Neutral/Negative Catalysts

Insider selling has increased significantly (858.58% over the last month).
Congress members have only sold the stock in recent trades, indicating caution.
Financial performance in Q3 2025 shows declining net income (-4.65% YoY), EPS (-4.92% YoY), and gross margin (-5.83% YoY).
Analysts have mixed ratings, with some lowering price targets due to challenging volume setups in
Hedge funds remain neutral, with no significant trading trends.

Financial Performance

In Q3 2025, revenue increased by 6.00% YoY to $2.31 billion. However, net income dropped by 4.65% YoY to $225.4 million, EPS fell by 4.92% YoY to $2.51, and gross margin declined by 5.83% YoY to 21.8%. This indicates pressure on profitability despite revenue growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have mixed views. Truist raised the price target to $273 with a Buy rating, while Citi lowered it to $226 with a Neutral rating. Wells Fargo upgraded the stock to Overweight with a price target of $233, citing a positive view of the containerboard market. However, analysts acknowledge challenges in packaging volumes and a tough 2026 outlook for the industry.

8 Analyst Rating

Wall Street analysts forecast PKG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PKG is 242.86 USD with a low forecast of 226 USD and a high forecast of 273 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

6 Buy

2 Hold

0 Sell

Strong Buy

Current: 217.610

Low

226

Averages

242.86

High

273

Current: 217.610

Low

226

Averages

242.86

High

273

Citi

Neutral

maintain

$226 -> $227

AI Analysis

2026-01-29

New

Reason

Citi

Price Target

$226 -> $227

AI Analysis

2026-01-29

New

maintain

Neutral

Reason

Citi raised the firm's price target on Packaging Corp. to $227 from $226 and keeps a Neutral rating on the shares. The company reported a Q4 miss and issued light Q1 guidance, the analyst tells investors in a research note. However, Citi sees some positive signs ahead of the March price increase.

BofA

BofA analysts

initiated

2026-01-29

New

Reason

BofA

BofA analysts

Price Target

2026-01-29

New

initiated

Reason

BofA analysts are adding Packaging Corp. of America (PKG) to the firm's "US 1 List," which represents a collection of the best investment ideas drawn from the universe of Buy-rated, U.S.-listed stocks covered by the firm's fundamental equity research analysts.

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PKG Should I Buy

PKG Should I Buy

Should You Buy Packaging Corp of America (PKG) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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