Karat Packaging (NASDAQ:KRT) Reaches New 1-Year High – Here’s Why

Karat Packaging Inc. (NASDAQ:KRT) shares hit a new 52-week high on Friday. The stock traded as high as $54.78 and last traded at $54.56, with a volume of 20918 shares changing hands. The stock had previously closed at $53.37.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Lake Street Capital reissued a “buy” rating and issued a $60.00 price target on shares of Karat Packaging in a report on Monday, September 14th. The Goldman Sachs Group lowered shares of Karat Packaging to a “neutral” rating in a report on Thursday, June 4th. Bank of America increased their target price 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. Weiss Ratings raised shares of Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 12th. Finally, William Blair upgraded Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $47.00.

Karat Packaging Stock Performance

The company’s 50-day moving average is $47.67 and its two-hundred day moving average is $36.18. The company has a market capitalization of $1.08 billion, a P/E ratio of 21.77, a PEG ratio of 1.54 and a beta of 0.79. The company has a quick ratio of 1.25, a current ratio of 2.25 and a debt-to-equity ratio of 0.13.

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

Karat Packaging Increases Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.88 dividend on an annualized basis and a dividend yield of 3.5%. This is an increase from Karat Packaging’s previous quarterly dividend of $0.45. Karat Packaging’s payout ratio is presently 75.20%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC bought a new position in Karat Packaging in the second quarter valued at $25,000. Clearstead Advisors LLC lifted its stake in Karat Packaging by 188.8% during 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. Legal & General Group Plc purchased a new position in shares of Karat Packaging in the 2nd quarter worth about $75,000. Bard Associates Inc. purchased a new position in shares of Karat Packaging in the 2nd quarter worth about $167,000. Finally, Corient Private Wealth LP bought a new position in shares of Karat Packaging during the 2nd quarter valued at about $228,000. 25.20% of the stock is currently owned by hedge funds and other institutional investors.

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.