Karat Packaging (NASDAQ:KRT) Sets New 1-Year High – Still a Buy?

Karat Packaging Inc. (NASDAQ:KRT)’s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $50.00 and last traded at $49.8630, with a volume of 27032 shares. The stock had previously closed at $48.11.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Lake Street Capital reissued a “buy” rating and issued a $39.00 price target on shares of Karat Packaging in a report on Friday, May 8th. Bank of America boosted their target price on shares of Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a research report on Tuesday, July 14th. Zacks Research lowered Karat Packaging from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. The Goldman Sachs Group downgraded Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. Finally, William Blair upgraded Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. 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. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $36.50.

Karat Packaging Stock Performance

The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of 20.14, a price-to-earnings-growth ratio of 2.04 and a beta of 0.82. The firm has a fifty day simple moving average of $34.82 and a 200 day simple moving average of $29.57. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.29 and a quick ratio of 1.15.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, August 6th. The company reported $1.48 earnings per share for the quarter, topping the consensus estimate of $0.47 by $1.01. The business had revenue of $136.30 million during the quarter, compared to the consensus estimate of $135.46 million. Karat Packaging had a return on equity of 31.42% and a net margin of 10.18%. On average, analysts anticipate that Karat Packaging Inc. will post 1.78 earnings per share for the current fiscal year.

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 $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 3.7%. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.45. The ex-dividend date is Friday, August 21st. Karat Packaging’s dividend payout ratio (DPR) is 72.00%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in Karat Packaging in the 2nd quarter worth about $19,840,000. Vanguard Group Inc. raised its holdings in shares of 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 acquiring an additional 51,179 shares during the last quarter. Wasatch Advisors LP lifted its position in shares of Karat Packaging by 3.3% in the second quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock valued at $9,320,000 after acquiring an additional 10,617 shares in the last quarter. Ranger Investment Management L.P. lifted its position in shares of Karat Packaging by 8.1% in the first 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 in the last quarter. Finally, Polar Asset Management Partners Inc. boosted its stake in shares of Karat Packaging by 57.1% in 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 during the last quarter. Institutional investors and hedge funds own 25.20% of the company’s stock.

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.