Karat Packaging (NASDAQ:KRT) Hits New 12-Month High – Should You Buy?

Karat Packaging Inc. (NASDAQ:KRT)’s share price hit a new 52-week high on Friday . The company traded as high as $50.85 and last traded at $50.2550, with a volume of 824 shares. The stock had previously closed at $50.38.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Karat Packaging from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. Weiss Ratings raised shares of Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 12th. Bank of America upped their price target on shares of Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a report on Tuesday, July 14th. William Blair raised Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. Finally, The Goldman Sachs Group lowered Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $47.00.

Karat Packaging Price Performance

The stock has a market cap of $993.29 million, a price-to-earnings ratio of 19.93, a price-to-earnings-growth ratio of 1.45 and a beta of 0.84. The company has a quick ratio of 1.25, a current ratio of 2.25 and a debt-to-equity ratio of 0.13. The company’s 50-day moving average is $44.58 and its 200-day moving average is $34.14.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings data on Thursday, August 6th. The company reported $1.48 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $1.01. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%.The company had revenue of $136.30 million for the quarter, compared to the consensus estimate of $135.46 million. Equities research analysts expect that Karat Packaging Inc. will post 2.63 earnings per share for the current fiscal year.

Karat Packaging Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 21st were paid a $0.47 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.88 annualized dividend and a yield of 3.8%. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.45. Karat Packaging’s payout ratio is presently 75.20%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of KRT. BlackRock Inc. bought a new position in shares of Karat Packaging during the second quarter valued at $19,840,000. Ranger Investment Management L.P. bought a new stake in shares of Karat Packaging in the 2nd quarter worth about $11,129,000. De Lisle Partners LLP acquired a new stake in shares of Karat Packaging during the 2nd quarter worth about $7,307,000. Dimensional Fund Advisors LP increased its position in shares of Karat Packaging by 8.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 218,437 shares of the company’s stock worth $6,098,000 after purchasing an additional 17,326 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Karat Packaging during the 2nd quarter valued at about $5,337,000. 25.20% of the stock is currently owned by institutional investors and hedge funds.

About Karat Packaging

Karat Packaging Inc is a foodservice packaging company that designs, manufactures, distributes, and sells disposable products for restaurants, foodservice operators, grocery stores, and other businesses. Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, bags, napkins, gloves, and related supplies.

The company offers products made from materials including plastic, paper, and other alternative materials through brands such as Karat and Karat Earth.