Karat Packaging (NASDAQ:KRT) Stock Price Down 8.6% – What’s Next?

Shares of Karat Packaging Inc. (NASDAQ:KRT) dropped 8.6% during mid-day trading on Friday . The company traded as low as $28.90 and last traded at $27.7950. Approximately 20,555 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 75,882 shares. The stock had previously closed at $30.41.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on KRT. Bank of America set a $24.00 price target on Karat Packaging and gave the company an “underperform” rating in a research report on Friday, March 13th. Weiss Ratings restated a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, January 22nd. Lake Street Capital restated a “buy” rating and set a $39.00 price target on shares of Karat Packaging in a research report on Friday. Zacks Research upgraded Karat Packaging from a “hold” rating to a “strong-buy” rating in a research report on Friday, March 20th. Finally, Wall Street Zen upgraded Karat Packaging from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 22nd. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $31.33.

Karat Packaging Stock Performance

The company has a quick ratio of 1.13, a current ratio of 2.30 and a debt-to-equity ratio of 0.15. The stock has a market cap of $573.85 million, a PE ratio of 18.25, a P/E/G ratio of 1.15 and a beta of 0.93. The company has a fifty day moving average price of $27.35 and a 200 day moving average price of $25.00.

Karat Packaging (NASDAQ:KRT) last posted its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.02. The company had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. Karat Packaging had a return on equity of 19.63% and a net margin of 6.73%. Analysts expect that Karat Packaging Inc. will post 1.98 earnings per share for the current year.

Karat Packaging Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 21st will be paid a $0.45 dividend. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $1.80 annualized dividend and a dividend yield of 6.3%. Karat Packaging’s dividend payout ratio (DPR) is presently 115.38%.

Institutional Trading of Karat Packaging

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Karat Packaging by 12.0% during the 3rd quarter. Vanguard Group Inc. now owns 477,450 shares of the company’s stock valued at $12,037,000 after acquiring an additional 51,179 shares in the last quarter. Wasatch Advisors LP raised its holdings in Karat Packaging by 3.3% in the second quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock worth $9,320,000 after purchasing an additional 10,617 shares in the last quarter. Ranger Investment Management L.P. lifted its position in Karat Packaging by 0.6% during the third quarter. Ranger Investment Management L.P. now owns 322,536 shares of the company’s stock valued at $8,131,000 after buying an additional 1,980 shares during the period. Polar Asset Management Partners Inc. lifted its position in Karat Packaging by 57.1% during the fourth quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company’s stock valued at $7,089,000 after buying an additional 114,204 shares during the period. Finally, Bank of Montreal Can purchased a new position in Karat Packaging during the fourth quarter valued at $5,216,000. 25.20% of the stock is owned by 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.