Karat Packaging (NASDAQ:KRT) Reaches New 52-Week High – Should You Buy?

Karat Packaging Inc. (NASDAQ:KRT) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $50.00 and last traded at $49.8630, with a volume of 27032 shares. The stock had previously closed at $48.11.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Wall Street Zen lowered Karat Packaging from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Bank of America increased their target price on Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a research note on Tuesday, July 14th. Weiss Ratings upgraded Karat Packaging from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, July 29th. Zacks Research lowered Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Finally, The Goldman Sachs Group cut Karat Packaging to a “neutral” rating in a research report on Thursday, June 4th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Karat Packaging currently has a consensus rating of “Hold” and a consensus price target of $36.50.

Karat Packaging Trading Down 3.6%

The business has a fifty day moving average of $35.70 and a two-hundred day moving average of $29.92. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29. The firm has a market cap of $961.82 million, a price-to-earnings ratio of 19.30, a PEG ratio of 2.17 and a beta of 0.82.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.48 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $1.01. Karat Packaging had a net margin of 10.18% and a return on equity of 31.42%. The firm had revenue of $136.30 million for the quarter, compared to analysts’ expectations of $135.46 million. As a group, equities analysts expect that Karat Packaging Inc. will post 1.78 earnings per share for the current fiscal year.

Karat Packaging Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 21st will be issued a $0.47 dividend. The ex-dividend date is Friday, August 21st. This is an increase from Karat Packaging’s previous quarterly dividend of $0.45. This represents a $1.88 dividend on an annualized basis and a yield of 3.9%. Karat Packaging’s payout ratio is 72.00%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Clearstead Advisors LLC raised its stake in shares of Karat Packaging by 188.8% during the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after purchasing an additional 976 shares during the period. CWM LLC boosted its stake in shares of Karat Packaging by 61.5% in the fourth 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 period. Quarry LP acquired a new stake in Karat Packaging during the 3rd quarter valued at $70,000. Deutsche Bank AG grew 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 purchasing an additional 2,271 shares in the last quarter. Finally, State of Wyoming purchased a new stake in Karat Packaging during the 4th quarter worth $122,000. 25.20% of the stock is 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.