KapStone Paper and Packaging Corporation (KS) Shares Gap Down Following Weak Earnings

KapStone Paper and Packaging Corporation (KS) Shares Gap Down  Following Weak Earnings

KapStone Paper and Packaging Corporation (NYSE:KS) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $25.60, but opened at $23.80. KapStone Paper and Packaging Corporation shares last traded at $22.73, with a volume of 3,213,191 shares traded.

The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by $0.01. KapStone Paper and Packaging Corporation had a return on equity of 11.30% and a net margin of 2.60%. The company had revenue of $777 million for the quarter, compared to analyst estimates of $760.42 million. During the same quarter in the prior year, the company earned $0.17 earnings per share. The business’s revenue was up 1.7% compared to the same quarter last year.

Several research analysts have issued reports on the company. Barclays PLC lowered KapStone Paper and Packaging Corporation from an “overweight” rating to an “equal weight” rating and increased their price objective for the stock from $22.00 to $24.00 in a research note on Monday. KeyCorp restated a “hold” rating on shares of KapStone Paper and Packaging Corporation in a research note on Wednesday. Wells Fargo & Company lowered KapStone Paper and Packaging Corporation from an “outperform” rating to a “market perform” rating in a research note on Monday, November 21st. Keefe, Bruyette & Woods restated a “market perform” rating on shares of KapStone Paper and Packaging Corporation in a research note on Wednesday, October 12th. Finally, RBC Capital Markets restated an “outperform” rating on shares of KapStone Paper and Packaging Corporation in a research note on Thursday, November 3rd. Eight investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $21.13.

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. boosted its position in shares of KapStone Paper and Packaging Corporation by 0.6% in the third quarter. BlackRock Inc. now owns 23,089 shares of the company’s stock worth $436,000 after buying an additional 144 shares during the period. Capstone Asset Management Co. boosted its position in shares of KapStone Paper and Packaging Corporation by 0.8% in the third quarter. Capstone Asset Management Co. now owns 25,222 shares of the company’s stock worth $477,000 after buying an additional 190 shares during the period. American International Group Inc. boosted its position in shares of KapStone Paper and Packaging Corporation by 0.5% in the third quarter. American International Group Inc. now owns 64,484 shares of the company’s stock worth $1,220,000 after buying an additional 289 shares during the period. Municipal Employees Retirement System of Michigan boosted its position in shares of KapStone Paper and Packaging Corporation by 1.2% in the third quarter. Municipal Employees Retirement System of Michigan now owns 27,050 shares of the company’s stock worth $512,000 after buying an additional 310 shares during the period. Finally, Metropolitan Life Insurance Co. NY boosted its position in shares of KapStone Paper and Packaging Corporation by 0.8% in the second quarter. Metropolitan Life Insurance Co. NY now owns 58,898 shares of the company’s stock worth $766,000 after buying an additional 445 shares during the period. Hedge funds and other institutional investors own 81.98% of the company’s stock.

The company has a market cap of $2.20 billion, a PE ratio of 27.72 and a beta of 2.82. The stock has a 50-day moving average price of $23.02 and a 200 day moving average price of $19.58.

About KapStone Paper and Packaging Corporation

KapStone Paper and Packaging Corporation is engaged in the production of containerboard, corrugated products and specialty paper. The Company operates through two segments: Paper and Packaging, and Distribution. The Company operates approximately four paper mills. It produces approximately 2.7 million tons of containerboard and specialty paper at its mills in North Charleston, South Carolina; Roanoke Rapids, North Carolina; Cowpens, South Carolina, and Longview, Washington.

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