Karat Packaging (NASDAQ:KRT) Hits New 1-Year High – What’s Next?

Shares of Karat Packaging Inc. (NASDAQ:KRT) reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $53.45 and last traded at $53.05, with a volume of 247113 shares trading hands. The stock had previously closed at $52.20.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Weiss Ratings upgraded shares of Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 12th. Wall Street Zen raised Karat Packaging from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Lake Street Capital reaffirmed a “buy” rating and set a $60.00 target price on shares of Karat Packaging in a report on Monday, September 14th. Bank of America upped their price target on Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a research report on Tuesday, July 14th. Finally, The Goldman Sachs Group cut Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $47.00.

Karat Packaging Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 2.25. The stock has a fifty day simple moving average of $46.52 and a two-hundred day simple moving average of $35.26. The stock has a market capitalization of $1.06 billion, a price-to-earnings ratio of 21.24, a P/E/G ratio of 1.59 and a beta of 0.84.

Karat Packaging (NASDAQ:KRT) last posted its quarterly earnings data 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 firm had revenue of $136.30 million during the quarter, compared to analyst estimates of $135.46 million. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%. Analysts forecast that Karat Packaging Inc. will post 2.63 earnings per share for the current fiscal year.

Karat Packaging Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 21st were issued a $0.47 dividend. The ex-dividend date was Friday, August 21st. This is an increase from Karat Packaging’s previous quarterly dividend of $0.45. This represents a $1.88 dividend on an annualized basis and a yield of 3.5%. Karat Packaging’s dividend payout ratio is presently 75.20%.

Hedge Funds Weigh In On Karat Packaging

Institutional investors and hedge funds have recently modified their holdings of the business. PDT Partners LLC acquired a new stake in Karat Packaging in the 2nd quarter valued at $1,106,000. Harel Insurance Investments & Financial Services Ltd. lifted its stake in shares of Karat Packaging by 40.3% in the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 151,181 shares of the company’s stock valued at $4,221,000 after buying an additional 43,451 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in shares of Karat Packaging during the first quarter valued at about $437,000. GSA Capital Partners LLP acquired a new position in shares of Karat Packaging during the second quarter valued at about $678,000. Finally, Algert Global LLC increased its position in shares of Karat Packaging by 85.5% during the second quarter. Algert Global LLC now owns 122,248 shares of the company’s stock worth $4,090,000 after acquiring an additional 56,361 shares in the last quarter. 25.20% of the stock is currently owned by institutional investors.

Karat Packaging Company Profile

Karat Packaging Inc is a foodservice packaging company that designs, manufactures, distributes, and sells disposable products for restaurants, foodservice operators, grocery stores, and other businesses. Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, bags, napkins, gloves, and related supplies.

The company offers products made from materials including plastic, paper, and other alternative materials through brands such as Karat and Karat Earth.