Packaging Corp of America Chairman & CEO Sold $5.40M In Company Stock

MARK KOWLZAN, Chairman & CEO at Packaging Corp of America (NYSE:PKG), disclosed an insider sell on September 15, according to a recent SEC filing.

What Happened: KOWLZAN's recent move involves selling 25,000 shares of Packaging Corp of America. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $5,399,250.

The latest update on Tuesday morning shows Packaging Corp of America shares down by 0.05%, trading at $211.7.

Get to Know Packaging Corp of America Better

Packaging Corp. of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 5 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. PCA differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.

Packaging Corp of America's Financial Performance

Revenue Growth: Packaging Corp of America's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 4.63%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.24%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Packaging Corp of America's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.68.

Debt Management: With a below-average debt-to-equity ratio of 0.61, Packaging Corp of America adopts a prudent financial strategy, indicating a balanced approach to debt management.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 21.14 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.2 is above industry norms, reflecting an elevated valuation for Packaging Corp of America's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Packaging Corp of America's EV/EBITDA ratio, surpassing industry averages at 11.71, positions it with an above-average valuation in the market.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Uncovering the Importance of Insider Activity

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Packaging Corp of America's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.