Packaging Corporation of America (PKG) Shares Tick Up after Upgrade at BMO Capital Markets

Packaging Corporation of America (NYSE: PKG) shares rose in value on Wednesday January 25 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened

The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.

The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.

All three main indexes set intraday records shortly after the opening bell.

Analysts at BMO Capital Markets upgraded shares of Packaging Corporation of America (NYSE: PKG) from Market Perform to Outperform today. With a rating of Outperform on the shares, Packaging Corporation of America has a 52-week high of $95.50. The one-year price target of $87.62 is lower than the opening price of $95.50, resulting a fair amount of other analysts to report on the company in recent days. Usually, after analysts issue an upgrade report on a stock, they will subsequently issue sporadic revisions, usually followed by a price target change.

Yesterday Packaging Corporation of America (NYSE: PKG) shares last traded at $93.86, which is a spike of $1.78 compared to the previous closing price. Opening at $95.50, they fluctuated from $93.01 and $95.50 throughout the day.

Packaging Corporation of America (NYSE: PKG) now has a market cap of 8.77B.

Packaging Corporation of America (NYSE: PKG) Average Daily Trading Volume

164,100 shares traded hands yesterday, 18 percent lower than normal, out of a total float 92,314,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are researching.

Packaging Corporation of America (NYSE: PKG) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

With that in mind, Packaging Corporation of America (NYSE: PKG) now has a 50-day MA of $86.73 and 200-day MA of $81.32. It has traded in a 52-week range between $44.32 – 95.50 and today’s last price is 1.72%% lower than the 52 week high of $95.50.

Earnings growth is an important factor to research when buying stocks and investors seek companies that have grown their earnings at least 25% or more over the past 3 years.

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