Karat Packaging (NASDAQ:KRT) Shares Down 5.4% – Time to Sell?

Shares of Karat Packaging Inc. (NASDAQ:KRT) fell 5.4% during mid-day trading on Thursday . The stock traded as low as $26.10 and last traded at $26.16. 21,286 shares changed hands during trading, a decline of 74% from the average session volume of 82,436 shares. The stock had previously closed at $27.66.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Zacks Research cut shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Karat Packaging in a report on Thursday, January 22nd. Wall Street Zen downgraded Karat Packaging from a “buy” rating to a “hold” rating in a research note on Sunday. Bank of America set a $24.00 price target on Karat Packaging and gave the company an “underperform” rating in a report on Friday, March 13th. Finally, Lake Street Capital reaffirmed a “buy” rating and set a $39.00 price objective on shares of Karat Packaging in a research report on Friday, May 8th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $31.50.

Karat Packaging Stock Down 3.3%

The stock’s fifty day moving average price is $27.93 and its 200-day moving average price is $25.14. The company has a quick ratio of 1.15, a current ratio of 2.29 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $534.16 million, a price-to-earnings ratio of 16.93, a P/E/G ratio of 1.21 and a beta of 0.93.

Karat Packaging (NASDAQ:KRT) last released its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.02. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The business had revenue of $116.95 million during the quarter, compared to the consensus estimate of $112.98 million. On average, sell-side analysts predict that Karat Packaging Inc. will post 1.98 earnings per share for the current fiscal year.

Karat Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Thursday, May 21st will be issued a $0.45 dividend. The ex-dividend date is Thursday, May 21st. This represents a $1.80 annualized dividend and a dividend yield of 6.7%. Karat Packaging’s dividend payout ratio (DPR) is presently 113.92%.

Institutional Trading of Karat Packaging

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in shares of Karat Packaging by 12.0% during the 3rd quarter. Vanguard Group Inc. now owns 477,450 shares of the company’s stock worth $12,037,000 after purchasing an additional 51,179 shares in the last quarter. Wasatch Advisors LP increased its holdings in Karat Packaging by 3.3% during the second quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock worth $9,320,000 after buying an additional 10,617 shares during the last quarter. Ranger Investment Management L.P. raised its position in Karat Packaging by 8.1% during the first quarter. Ranger Investment Management L.P. now owns 325,104 shares of the company’s stock worth $9,077,000 after acquiring an additional 24,405 shares in the last quarter. Polar Asset Management Partners Inc. raised its position in Karat Packaging by 57.1% during the fourth quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company’s stock worth $7,089,000 after acquiring an additional 114,204 shares in the last quarter. Finally, Bank of Montreal Can acquired a new stake in Karat Packaging in the fourth quarter valued at $5,216,000. 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.