Karat Packaging (NASDAQ:KRT) Shares Gap Up – Here’s Why

Karat Packaging Inc. (NASDAQ:KRT) shares gapped up prior to trading on Thursday . The stock had previously closed at $26.62, but opened at $28.49. Karat Packaging shares last traded at $28.73, with a volume of 20,501 shares traded.

Wall Street Analyst Weigh In

A number of analysts have recently commented on KRT shares. The Goldman Sachs Group lowered Karat Packaging to a “neutral” rating in a research note on Thursday. Lake Street Capital reaffirmed a “buy” rating and issued a $39.00 price objective on shares of Karat Packaging in a research note on Friday, May 8th. Wall Street Zen lowered shares of Karat Packaging from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. William Blair upgraded shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday. Finally, Bank of America set a $24.00 target price on shares of Karat Packaging and gave the stock an “underperform” rating in a research report on Friday, March 13th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $31.50.

Karat Packaging Price Performance

The business has a 50-day simple moving average of $28.13 and a 200 day simple moving average of $25.41. The stock has a market cap of $557.38 million, a P/E ratio of 17.75, a price-to-earnings-growth ratio of 1.36 and a beta of 0.90. The company has a current ratio of 2.29, a quick ratio of 1.15 and a debt-to-equity ratio of 0.15.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.34 EPS for the quarter, beating 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 analyst estimates of $112.98 million. On average, analysts forecast that Karat Packaging Inc. will post 1.78 earnings per share for the current year.

Karat Packaging Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 21st were given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date was Thursday, May 21st. Karat Packaging’s payout ratio is 113.92%.

Hedge Funds Weigh In On Karat Packaging

Hedge funds and other institutional investors have recently bought and sold shares of the company. Clearstead Advisors LLC lifted its holdings in Karat Packaging by 188.8% in the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after buying an additional 976 shares during the period. CWM LLC lifted its holdings in Karat Packaging by 61.5% in the fourth quarter. CWM LLC now owns 2,651 shares of the company’s stock valued at $60,000 after buying an additional 1,010 shares during the period. Quarry LP acquired a new position in Karat Packaging in the third quarter valued at $70,000. Deutsche Bank AG lifted its holdings in Karat Packaging by 142.8% in the fourth quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock valued at $87,000 after buying an additional 2,271 shares during the period. Finally, State of Wyoming acquired a new position in Karat Packaging in the fourth quarter valued at $122,000. 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.