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

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

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Zacks Research lowered shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Bank of America raised their price target on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a research note on Tuesday, July 14th. The Goldman Sachs Group lowered shares of Karat Packaging to a “neutral” rating in a research report on Thursday, June 4th. William Blair upgraded shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday, June 4th. Finally, Wall Street Zen lowered shares of Karat Packaging from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $36.50.

Karat Packaging Stock Up 4.9%

The company has a debt-to-equity ratio of 0.15, a current ratio of 2.29 and a quick ratio of 1.15. The business’s 50 day simple moving average is $34.82 and its 200 day simple moving average is $29.57. The company has a market capitalization of $1.01 billion, a PE ratio of 20.14, a P/E/G ratio of 2.04 and a beta of 0.82.

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

Karat Packaging Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 21st will be given a $0.47 dividend. The ex-dividend date is Friday, August 21st. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.45. This represents a $1.88 annualized dividend and a yield of 3.7%. Karat Packaging’s dividend payout ratio (DPR) is currently 72.00%.

Hedge Funds Weigh In On Karat Packaging

Several large investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in shares of Karat Packaging during the 2nd quarter worth $19,840,000. Vanguard Group Inc. raised its holdings in Karat Packaging by 12.0% in the 3rd quarter. Vanguard Group Inc. now owns 477,450 shares of the company’s stock valued at $12,037,000 after buying an additional 51,179 shares during the period. Wasatch Advisors LP raised its holdings in Karat Packaging by 3.3% in the 2nd quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock valued at $9,320,000 after buying an additional 10,617 shares during the period. Ranger Investment Management L.P. lifted its position in Karat Packaging by 8.1% in the first quarter. Ranger Investment Management L.P. now owns 325,104 shares of the company’s stock valued at $9,077,000 after buying an additional 24,405 shares during the last quarter. Finally, Polar Asset Management Partners Inc. boosted its stake 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 worth $7,089,000 after buying an additional 114,204 shares during the period. Institutional investors and hedge funds own 25.20% of the company’s stock.

Karat Packaging Company Profile

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.