Karat Packaging (NASDAQ:KRT) Sets New 1-Year High Following Analyst Upgrade

Shares of Karat Packaging Inc. (NASDAQ:KRT) reached a new 52-week high on Tuesday after Bank of America raised their price target on the stock from $23.00 to $34.00. Bank of America currently has an underperform rating on the stock. Karat Packaging traded as high as $35.67 and last traded at $34.9450, with a volume of 30320 shares trading hands. The stock had previously closed at $34.73.

A number of other equities research analysts also recently weighed in on the stock. William Blair raised shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. Lake Street Capital reissued a “buy” rating and issued a $39.00 target price on shares of Karat Packaging in a report on Friday, May 8th. The Goldman Sachs Group downgraded Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. Zacks Research lowered Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Karat Packaging has a consensus rating of “Hold” and an average price target of $36.50.

Institutional Trading of Karat Packaging

A number of hedge funds and other institutional investors have recently modified their holdings of KRT. Vanguard Group Inc. boosted its stake in Karat Packaging by 12.0% during the third quarter. Vanguard Group Inc. now owns 477,450 shares of the company’s stock valued at $12,037,000 after buying an additional 51,179 shares in the last quarter. Wasatch Advisors LP raised its position in Karat Packaging by 3.3% in the second quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock worth $9,320,000 after acquiring an additional 10,617 shares in the last quarter. Ranger Investment Management L.P. lifted its holdings in Karat Packaging by 8.1% in the 1st quarter. Ranger Investment Management L.P. now owns 325,104 shares of the company’s stock valued at $9,077,000 after acquiring an additional 24,405 shares during the last quarter. Polar Asset Management Partners Inc. lifted its holdings in Karat Packaging by 57.1% in the 4th quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company’s stock valued at $7,089,000 after acquiring an additional 114,204 shares during the last quarter. Finally, Bank of Montreal Can bought a new position in shares of Karat Packaging during the 4th quarter valued at about $5,216,000. Institutional investors own 25.20% of the company’s stock.

Karat Packaging Price Performance

The company’s 50 day moving average price is $29.93 and its 200-day moving average price is $27.41. The company has a market cap of $718.50 million, a price-to-earnings ratio of 22.78, a PEG ratio of 1.76 and a beta of 0.85. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29.

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

Karat Packaging Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 21st were issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 5.0%. The ex-dividend date was Thursday, May 21st. Karat Packaging’s dividend payout ratio (DPR) is 113.92%.

About Karat Packaging

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.