Karat Packaging (NASDAQ:KRT) Sets New 12-Month High – Should You Buy?

Karat Packaging Inc. (NASDAQ:KRT)’s stock price reached a new 52-week high during trading on Monday . The stock traded as high as $40.15 and last traded at $40.15, with a volume of 9491 shares trading hands. The stock had previously closed at $38.73.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Zacks Research downgraded Karat Packaging from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Lake Street Capital reaffirmed a “buy” rating and issued a $39.00 target price on shares of Karat Packaging in a report on Friday, May 8th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, June 11th. Bank of America lifted their price target on Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a report on Tuesday, July 14th. Finally, The Goldman Sachs Group cut Karat Packaging to a “neutral” rating in a research report on Thursday, June 4th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Karat Packaging presently has an average rating of “Hold” and an average target price of $36.50.

Karat Packaging Price Performance

The stock has a market cap of $795.90 million, a P/E ratio of 25.34, a price-to-earnings-growth ratio of 1.71 and a beta of 0.85. 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 simple moving average is $31.46 and its two-hundred day simple moving average is $28.19.

Karat Packaging (NASDAQ:KRT) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.02. The company had revenue of $116.95 million for the quarter, compared to analyst estimates of $112.98 million. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. Sell-side analysts expect that Karat Packaging Inc. will post 1.78 EPS for the current year.

Karat Packaging Dividend Announcement

The firm 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. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 dividend on an annualized basis and a yield of 4.5%. Karat Packaging’s payout ratio is presently 113.92%.

Institutional Investors Weigh In On Karat Packaging

Several institutional investors have recently made changes to their positions in KRT. Clearstead Advisors LLC grew its position in shares of Karat Packaging by 188.8% in the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after purchasing an additional 976 shares in the last quarter. CWM LLC lifted its holdings in Karat Packaging by 61.5% during the 4th quarter. CWM LLC now owns 2,651 shares of the company’s stock worth $60,000 after purchasing an additional 1,010 shares in the last quarter. Quarry LP purchased a new stake in Karat Packaging during the 3rd quarter worth about $70,000. Deutsche Bank AG boosted its stake in Karat Packaging by 142.8% in the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock worth $87,000 after purchasing an additional 2,271 shares during the period. Finally, State of Wyoming bought a new position in Karat Packaging in the 4th quarter worth about $122,000. Hedge funds and other institutional investors 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.