Karat Packaging (NASDAQ:KRT) Trading 15.7% Higher Following Strong Earnings

Shares of Karat Packaging Inc. (NASDAQ:KRT) traded up 15.7% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $48.76 and last traded at $49.04. Approximately 44,121 shares were traded during trading, a decline of 54% from the average session volume of 95,620 shares. The stock had previously closed at $42.37.

The company reported $1.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $1.01. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%.The business had revenue of $136.30 million during the quarter, compared to analysts’ expectations of $135.46 million.

Karat Packaging Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 21st will be given a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 3.8%. This is a boost from Karat Packaging’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, August 21st. Karat Packaging’s payout ratio is presently 113.92%.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. William Blair upgraded shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. Lake Street Capital restated a “buy” rating and issued a $39.00 price target on shares of Karat Packaging in a report on Friday, May 8th. Weiss Ratings upgraded shares of Karat Packaging from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, July 29th. Bank of America lifted their price objective on shares of Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a research note on Tuesday, July 14th. Finally, Zacks Research cut shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Karat Packaging has a consensus rating of “Hold” and a consensus target price of $36.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bank of Montreal Can purchased a new position in Karat Packaging in the 4th quarter worth about $5,216,000. KTF Investments LLC purchased a new stake in shares of Karat Packaging in the fourth quarter valued at $5,075,000. Polar Asset Management Partners Inc. bought a new stake in shares of Karat Packaging during the 3rd quarter worth approximately $5,039,000. Bank of New York Mellon Corp purchased a new stake in Karat Packaging in the 2nd quarter valued at about $5,337,000. Finally, Marshall Wace LLP bought a new position in shares of Karat Packaging during the 2nd quarter worth $4,312,000. Institutional investors own 25.20% of the company’s stock.

Karat Packaging Stock Up 16.6%

The company has a market cap of $986.02 million, a P/E ratio of 31.01, a P/E/G ratio of 1.83 and a beta of 0.82. 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 business’s 50 day moving average is $34.01 and its 200 day moving average is $29.25.

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.