Karat Packaging (NASDAQ:KRT) Hits New 1-Year High After Dividend Announcement

Karat Packaging Inc. (NASDAQ:KRT) hit a new 52-week high on Wednesday after the company announced a dividend. The company traded as high as $42.30 and last traded at $42.28, with a volume of 7759 shares changing hands. The stock had previously closed at $41.09.

The newly announced dividend which will be paid on Friday, August 28th. Shareholders of record on Friday, August 21st will be issued a $0.47 dividend. The ex-dividend date is Friday, August 21st. This represents a $1.88 dividend on an annualized basis and a yield of 4.1%. This is an increase from Karat Packaging’s previous quarterly dividend of $0.45. Karat Packaging’s payout ratio is presently 113.92%.

Analyst Ratings Changes

Several analysts have commented on the stock. The Goldman Sachs Group cut shares of Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. Weiss Ratings upgraded Karat Packaging from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, July 29th. Wall Street Zen cut Karat Packaging from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Bank of America boosted their target price on Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a research report on Tuesday, July 14th. Finally, Lake Street Capital reissued a “buy” rating and set a $39.00 price target on shares of Karat Packaging in a research note on Friday, May 8th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $36.50.

Karat Packaging Price Performance

The company has a current ratio of 2.29, a quick ratio of 1.15 and a debt-to-equity ratio of 0.15. The firm’s 50-day moving average price is $34.01 and its 200-day moving average price is $29.25. The stock has a market capitalization of $922.65 million, a PE ratio of 29.26, a PEG ratio of 1.83 and a beta of 0.82.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings results on Thursday, August 6th. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $0.47 by $1.01. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%.The company had revenue of $136.30 million during the quarter, compared to analyst estimates of $135.46 million. On average, equities analysts forecast that Karat Packaging Inc. will post 1.78 EPS for the current fiscal year.

Hedge Funds Weigh In On Karat Packaging

Several large investors have recently modified their holdings of the stock. Stifel Financial Corp increased its stake in Karat Packaging by 1.8% in the fourth quarter. Stifel Financial Corp now owns 22,798 shares of the company’s stock worth $515,000 after purchasing an additional 398 shares during the period. First Trust Advisors LP boosted its stake in shares of Karat Packaging by 1.9% during the fourth quarter. First Trust Advisors LP now owns 27,345 shares of the company’s stock valued at $617,000 after purchasing an additional 508 shares during the period. Lazard Asset Management LLC grew its holdings in shares of Karat Packaging by 1.9% in the second quarter. Lazard Asset Management LLC now owns 40,390 shares of the company’s stock worth $1,137,000 after purchasing an additional 770 shares during the last quarter. Clearstead Advisors LLC grew its holdings in shares of Karat Packaging by 188.8% in the fourth 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 last quarter. Finally, CWM LLC increased its stake in Karat Packaging by 61.5% in the 4th quarter. CWM LLC now owns 2,651 shares of the company’s stock worth $60,000 after buying an additional 1,010 shares during the period. Institutional investors own 25.20% of the company’s stock.

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.