Karat Packaging Inc. (NASDAQ:KRT) Stock Has Consensus Price Target of $47.00 According to Brokerages

Karat Packaging Inc. (NASDAQ:KRT) has earned a consensus rating of “Hold” from the six analysts that are currently covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $47.00.

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

Karat Packaging Stock Performance

NASDAQ:KRT opened at $53.80 on Tuesday. The company has a 50-day moving average of $49.01 and a 200-day moving average of $37.11. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of 21.52, a price-to-earnings-growth ratio of 1.47 and a beta of 0.79. The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. Karat Packaging has a twelve month low of $20.61 and a twelve month high of $55.36.

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

Karat Packaging Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 21st were paid a $0.47 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.88 dividend on an annualized basis and a yield of 3.5%. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.45. Karat Packaging’s dividend payout ratio (DPR) is 75.20%.

Institutional Trading of Karat Packaging

Several large investors have recently added to or reduced their stakes in KRT. Integrated Wealth Concepts LLC purchased a new position in shares of Karat Packaging during the second quarter valued at $25,000. Legal & General Group Plc acquired a new stake in Karat Packaging during the 2nd quarter worth about $75,000. Bard Associates Inc. purchased a new position in Karat Packaging during the 2nd quarter valued at about $167,000. Corient Private Wealth LP purchased a new position in Karat Packaging during the 2nd quarter valued at about $228,000. Finally, Two Sigma Securities LLC acquired a new position in shares of Karat Packaging in the 2nd quarter valued at about $262,000. 25.20% of the stock is owned by institutional investors and hedge funds.

Karat Packaging Company Profile

Karat Packaging Inc is a manufacturer and distributor of disposable foodservice products and supplies. The company serves restaurants, cafés, foodservice distributors, grocery stores, convenience stores, and other commercial and institutional customers, primarily in North America.

Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, napkins, gloves, bags, and related serving and packaging products. Karat Packaging offers products made from materials such as paper, plastic, aluminum, and compostable or other environmentally oriented alternatives, including products marketed under the Karat Earth brand.

Founded in 2000 and headquartered in Chino, California, the company operates through a combination of manufacturing, sourcing, distribution, and product development activities.