Karat Packaging (NASDAQ:KRT) Sets New 1-Year High – Time to Buy?

Karat Packaging Inc. (NASDAQ:KRT)’s share price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $33.77 and last traded at $33.4730, with a volume of 155409 shares changing hands. The stock had previously closed at $32.79.

Wall Street Analysts Forecast Growth

Several research firms have commented on KRT. Weiss Ratings reissued a “hold (c+)” rating on shares of Karat Packaging in a report on Thursday, June 11th. Lake Street Capital reaffirmed a “buy” rating and issued a $39.00 target price on shares of Karat Packaging in a report on Friday, May 8th. Wall Street Zen upgraded Karat Packaging from a “hold” rating to a “buy” rating in a research report on Saturday, June 13th. The Goldman Sachs Group downgraded Karat Packaging to a “neutral” rating in a research report on Thursday, June 4th. Finally, Zacks Research cut Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $31.50.

Karat Packaging Stock Up 1.2%

The firm has a market cap of $683.63 million, a P/E ratio of 21.68, a price-to-earnings-growth ratio of 1.68 and a beta of 0.85. The company’s 50-day simple moving average is $28.92 and its 200 day simple moving average is $26.68. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.29 and a quick ratio of 1.15.

Karat Packaging (NASDAQ:KRT) last posted its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02. The firm had revenue of $116.95 million for the quarter, compared to the consensus estimate of $112.98 million. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. Research analysts anticipate that Karat Packaging Inc. will post 1.78 EPS for the current fiscal year.

Karat Packaging Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 21st were paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend was Thursday, May 21st. Karat Packaging’s payout ratio is presently 113.92%.

Institutional Investors Weigh In On Karat Packaging

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KRT. Clearstead Advisors LLC boosted its holdings in shares of Karat Packaging by 188.8% in the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock worth $34,000 after purchasing an additional 976 shares during the period. CWM LLC increased its position in shares of Karat Packaging by 61.5% during the 4th quarter. CWM LLC now owns 2,651 shares of the company’s stock valued at $60,000 after purchasing an additional 1,010 shares during the last quarter. Quarry LP purchased a new stake in Karat Packaging during the 3rd quarter valued at $70,000. Deutsche Bank AG raised its holdings in Karat Packaging by 142.8% during the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock valued at $87,000 after buying an additional 2,271 shares during the period. Finally, State of Wyoming bought a new stake in Karat Packaging in the fourth quarter worth $122,000. 25.20% of the stock is currently owned by hedge funds and other institutional investors.

About Karat Packaging

Karat Packaging Technologies, Inc (NASDAQ: KRT) is a U.S.-based provider of premium packaging solutions for consumer goods and industrial products. The company specializes in the design, manufacture and delivery of high-quality litho-laminated folding cartons, tubes and flexible packaging. Karat Packaging operates an integrated production model that combines prepress, printing, converting and finishing capabilities to support the branding and shelf-appeal needs of its customers.

The company serves a diverse range of end markets, including food and beverage, confectionery, health and beauty, pharmaceuticals, specialty chemicals and promotional packaging.