Karat Packaging (NASDAQ:KRT) Shares Climb 10.1% – Here’s What Happened

Karat Packaging Inc. (NASDAQ:KRT)’s stock price traded up 10.1% on Monday. The stock traded as high as $36.69 and last traded at $36.9270. Approximately 62,943 shares changed hands during trading, a decline of 47% from the average daily volume of 119,800 shares. The stock had previously closed at $33.54.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on KRT shares. Weiss Ratings downgraded Karat Packaging from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday. Lake Street Capital reiterated a “buy” rating and issued a $60.00 price objective on shares of Karat Packaging in a report on Monday, September 14th. Wall Street Zen downgraded shares of Karat Packaging from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Bank of America boosted their target price on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a report on Tuesday, July 14th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Karat Packaging presently has a consensus rating of “Hold” and an average target price of $47.00.

Karat Packaging Stock Up 3.5%

The firm has a market capitalization of $755.80 million, a price-to-earnings ratio of 16.01, a P/E/G ratio of 1.46 and a beta of 0.79. The stock has a fifty day moving average of $51.08 and a two-hundred day moving average of $36.43. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.25 and a quick ratio of 1.25.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, November 5th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.17). The company had revenue of $134.74 million for the quarter, compared to the consensus estimate of $140.33 million. Karat Packaging had a return on equity of 28.67% and a net margin of 9.39%. Sell-side analysts anticipate that Karat Packaging Inc. will post 2.63 earnings per share for the current year.

Karat Packaging Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Thursday, November 19th will be paid a $0.47 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $1.88 annualized dividend and a dividend yield of 5.0%. Karat Packaging’s dividend payout ratio is presently 79.66%.

Hedge Funds Weigh In On Karat Packaging

A number of hedge funds have recently made changes to their positions in KRT. Integrated Wealth Concepts LLC bought a new stake in Karat Packaging in the second quarter valued at approximately $25,000. Signaturefd LLC increased its position in Karat Packaging by 126.7% during the 3rd quarter. Signaturefd LLC now owns 1,526 shares of the company’s stock valued at $80,000 after purchasing an additional 853 shares during the period. USA Financial Formulas bought a new position in Karat Packaging during the 3rd quarter worth approximately $46,000. Ritholtz Wealth Management raised its holdings in Karat Packaging by 5.9% during the 3rd quarter. Ritholtz Wealth Management now owns 31,740 shares of the company’s stock worth $1,668,000 after purchasing an additional 1,777 shares during the last quarter. Finally, GK Wealth Management LLC bought a new position in Karat Packaging during the 3rd quarter worth approximately $106,000. 25.20% of the stock is currently owned by institutional investors.

About Karat Packaging

Karat Packaging Inc. manufactures and distributes disposable foodservice packaging and related products. Its offerings include cups, containers, lids, cutlery, straws, bags, napkins and food-handling supplies for restaurants and other foodservice businesses. The company sells products under brands including Karat and Karat Earth, which features packaging made with materials such as paper and compostable or biodegradable alternatives. Its customers include restaurants, foodservice distributors and other businesses that serve or sell food and beverages.