Karat Packaging (NASDAQ:KRT) Sets New 1-Year High – Should You Buy?

Karat Packaging Inc. (NASDAQ:KRT) reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $31.18 and last traded at $30.90, with a volume of 33471 shares. The stock had previously closed at $30.66.

Analyst Ratings Changes

Several research firms have weighed in on KRT. William Blair upgraded Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday, June 4th. Wall Street Zen upgraded Karat Packaging from a “hold” rating to a “buy” rating in a report on Saturday, June 13th. The Goldman Sachs Group lowered Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Karat Packaging in a report on Thursday, June 11th. Finally, Bank of America set a $24.00 price objective on shares of Karat Packaging and gave the company an “underperform” rating in a research report on Friday, March 13th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $31.50.

Karat Packaging Stock Performance

The company has a 50-day simple moving average of $28.48 and a two-hundred day simple moving average of $26.23. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29. The firm has a market capitalization of $614.47 million, a P/E ratio of 19.48, a PEG ratio of 1.48 and a beta of 0.90.

Karat Packaging (NASDAQ:KRT) last posted its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%.The firm had revenue of $116.95 million for the quarter, compared to the consensus estimate of $112.98 million. As a group, equities analysts forecast that Karat Packaging Inc. will post 1.78 EPS for the current year.

Karat Packaging Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were paid a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 5.8%. The ex-dividend date of this dividend was Thursday, May 21st. Karat Packaging’s dividend payout ratio is presently 113.92%.

Hedge Funds Weigh In On Karat Packaging

Several institutional investors and hedge funds have recently added to or reduced their stakes in KRT. Stifel Financial Corp boosted its holdings in shares of Karat Packaging by 1.8% during the 4th quarter. Stifel Financial Corp now owns 22,798 shares of the company’s stock valued at $515,000 after buying an additional 398 shares in the last quarter. First Trust Advisors LP increased its stake in shares of Karat Packaging by 1.9% in the 4th quarter. First Trust Advisors LP now owns 27,345 shares of the company’s stock worth $617,000 after acquiring an additional 508 shares in the last quarter. Lazard Asset Management LLC lifted its position in Karat Packaging by 1.9% during the 2nd quarter. Lazard Asset Management LLC now owns 40,390 shares of the company’s stock valued at $1,137,000 after acquiring an additional 770 shares during the period. Clearstead Advisors LLC lifted its position in Karat Packaging by 188.8% during the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after acquiring an additional 976 shares during the period. Finally, CWM LLC boosted its stake in Karat Packaging by 61.5% during the fourth quarter. CWM LLC now owns 2,651 shares of the company’s stock worth $60,000 after acquiring an additional 1,010 shares in the last quarter. Hedge funds and other institutional investors 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.