Karat Packaging Inc. (NASDAQ:KRT) Stock Has Average Target Price of $47.00 According to Analysts

Karat Packaging Inc. (NASDAQ:KRT) has been given a consensus rating of “Hold” by the six ratings firms that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $47.00.

KRT has been the subject of a number of recent research reports. Bank of America boosted their price objective on Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a report on Tuesday, July 14th. Wall Street Zen upgraded Karat Packaging from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Weiss Ratings upgraded Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 12th. Finally, Lake Street Capital reaffirmed a “buy” rating and set a $60.00 target price on shares of Karat Packaging in a research report on Monday, September 14th.

Karat Packaging Stock Performance

KRT opened at $54.49 on Tuesday. Karat Packaging has a 1-year low of $20.61 and a 1-year high of $56.06. The company has a market cap of $1.09 billion, a price-to-earnings ratio of 21.80, a PEG ratio of 1.50 and a beta of 0.79. The company’s fifty day moving average price is $49.57 and its two-hundred day moving average price is $37.48. The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $1.01. The firm had revenue of $136.30 million during the quarter, compared to analysts’ expectations of $135.46 million. Karat Packaging had a net margin of 10.18% and a return on equity of 30.62%. On average, analysts expect that Karat Packaging will post 2.63 EPS for the current fiscal year.

Karat Packaging Increases Dividend

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

Hedge Funds Weigh In On Karat Packaging

Large investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in Karat Packaging in the 2nd quarter worth about $19,840,000. Ranger Investment Management L.P. bought a new position in shares of Karat Packaging during the 2nd quarter worth approximately $11,129,000. De Lisle Partners LLP bought a new position in shares of Karat Packaging during the 2nd quarter worth approximately $7,307,000. Bank of New York Mellon Corp bought a new position in shares of Karat Packaging during the 2nd quarter worth approximately $5,337,000. Finally, Punch & Associates Investment Management Inc. purchased a new position in shares of Karat Packaging in the 2nd quarter worth approximately $3,290,000. 25.20% of the stock is currently owned by institutional investors.

About Karat Packaging

Karat Packaging Inc is a manufacturer and distributor of disposable foodservice products and supplies. The company serves restaurants, cafés, foodservice distributors, grocery stores, convenience stores, and other commercial and institutional customers, primarily in North America.

Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, napkins, gloves, bags, and related serving and packaging products. Karat Packaging offers products made from materials such as paper, plastic, aluminum, and compostable or other environmentally oriented alternatives, including products marketed under the Karat Earth brand.

Founded in 2000 and headquartered in Chino, California, the company operates through a combination of manufacturing, sourcing, distribution, and product development activities.