Karat Packaging (NASDAQ:KRT) Shares Gap Up – Here’s Why

Shares of Karat Packaging Inc. (NASDAQ:KRT) gapped up prior to trading on Thursday . The stock had previously closed at $26.62, but opened at $28.49. Karat Packaging shares last traded at $28.73, with a volume of 20,501 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Bank of America set a $24.00 target price on shares of Karat Packaging and gave the company an “underperform” rating in a report on Friday, March 13th. The Goldman Sachs Group lowered shares of Karat Packaging to a “neutral” rating in a report on Thursday. William Blair upgraded shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday. Zacks Research lowered shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Finally, Wall Street Zen lowered shares of Karat Packaging from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $31.50.

Karat Packaging Trading Up 4.9%

The firm has a fifty day simple moving average of $28.13 and a 200-day simple moving average of $25.41. The firm has a market cap of $557.38 million, a P/E ratio of 17.75, a price-to-earnings-growth ratio of 1.36 and a beta of 0.90. 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 announced its quarterly 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 business had revenue of $116.95 million for the quarter, compared to analyst estimates of $112.98 million. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%. On average, equities research analysts expect that Karat Packaging Inc. will post 1.78 earnings per share for the current year.

Karat Packaging Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were given a $0.45 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 annualized dividend and a yield of 6.4%. Karat Packaging’s dividend payout ratio (DPR) is presently 113.92%.

Institutional Trading of Karat Packaging

Institutional investors and hedge funds have recently modified their holdings of the stock. Clearstead Advisors LLC raised its stake 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. CWM LLC raised 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 worth $60,000 after purchasing an additional 1,010 shares during the last quarter. Quarry LP purchased a new stake in shares of Karat Packaging in the third quarter worth approximately $70,000. Deutsche Bank AG raised its stake in shares of Karat Packaging by 142.8% in the fourth quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock worth $87,000 after purchasing an additional 2,271 shares during the last quarter. Finally, State of Wyoming purchased a new stake in shares of Karat Packaging in the fourth quarter worth approximately $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.