Karat Packaging Inc. (NASDAQ:KRT) Given Average Recommendation of “Hold” by Brokerages

Karat Packaging Inc. (NASDAQ:KRT) has earned an average recommendation of “Hold” from the six analysts that are covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and three have given a buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $47.00.

KRT has been the subject of several research reports. William Blair raised Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday, June 4th. Lake Street Capital reiterated a “buy” rating and issued a $60.00 price target on shares of Karat Packaging in a research note on Monday. Wall Street Zen raised shares of Karat Packaging from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Bank of America raised their price objective on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a research report on Tuesday, July 14th. Finally, Weiss Ratings upgraded Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 12th.

Karat Packaging Trading Up 1.6%

Karat Packaging stock opened at $50.38 on Friday. The stock has a 50-day simple moving average of $44.58 and a 200 day simple moving average of $34.14. The stock has a market capitalization of $1.00 billion, a P/E ratio of 20.15, a PEG ratio of 1.45 and a beta of 0.84. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 2.25. Karat Packaging has a 52 week low of $20.61 and a 52 week high of $50.81.

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

Karat Packaging Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 21st were issued a dividend of $0.47 per share. This is an increase from Karat Packaging’s previous quarterly dividend of $0.45. This represents a $1.88 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Friday, August 21st. Karat Packaging’s payout ratio is 75.20%.

Institutional Investors Weigh In On Karat Packaging

A number of institutional investors have recently modified their holdings of KRT. BlackRock Inc. acquired a new position in shares of Karat Packaging during the 2nd quarter worth approximately $19,840,000. Ranger Investment Management L.P. bought a new position in Karat Packaging during the 2nd quarter worth $11,129,000. De Lisle Partners LLP acquired a new position in Karat Packaging in the second quarter valued at about $7,307,000. Dimensional Fund Advisors LP raised its stake in Karat Packaging by 8.6% in the first quarter. Dimensional Fund Advisors LP now owns 218,437 shares of the company’s stock valued at $6,098,000 after purchasing an additional 17,326 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Karat Packaging during the second quarter worth about $5,337,000. Institutional investors own 25.20% of the company’s stock.

Karat Packaging Company Profile

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.