Karat Packaging Inc. (NASDAQ:KRT) Stock Now Rated “Hold” by Wall Street Analysts

Shares of Karat Packaging Inc. (NASDAQ:KRT) have been given an average recommendation of “Hold” by the six brokerages that are covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $47.00.

Several equities research analysts have weighed in on the company. Wall Street Zen upgraded Karat Packaging from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Lake Street Capital restated a “buy” rating and set a $60.00 price target on shares of Karat Packaging in a research note on Monday, September 14th. Bank of America lifted their price objective on Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a report on Tuesday, July 14th. Finally, Weiss Ratings raised shares of Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, August 12th.

Karat Packaging Stock Down 0.8%

Shares of NASDAQ KRT opened at $53.97 on Friday. 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 firm has a market capitalization of $1.08 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 1.50 and a beta of 0.79. The stock has a 50 day moving average price of $51.55 and a 200 day moving average price of $35.71. Karat Packaging has a 52-week low of $20.61 and a 52-week high of $56.06.

Karat Packaging (NASDAQ:KRT) last announced its quarterly earnings data on Thursday, August 6th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $1.01. The company had revenue of $136.30 million for the quarter, compared to analysts’ expectations of $135.46 million. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%. Sell-side analysts expect that Karat Packaging will post 2.63 earnings per share for the current 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 given a dividend of $0.47 per share. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.88 dividend on an annualized basis and a yield of 3.5%. Karat Packaging’s payout ratio is 75.20%.

Institutional Investors Weigh In On Karat Packaging

Several large investors have recently modified their holdings of KRT. BlackRock Inc. purchased a new stake in shares of Karat Packaging in the 2nd quarter worth approximately $19,840,000. Ranger Investment Management L.P. purchased a new position in Karat Packaging during the second quarter valued at approximately $11,129,000. De Lisle Partners LLP purchased a new position in Karat Packaging during the second quarter valued at approximately $7,307,000. Bank of New York Mellon Corp bought a new position in Karat Packaging in the second quarter worth approximately $5,337,000. Finally, Punch & Associates Investment Management Inc. bought a new position in Karat Packaging in the second quarter worth approximately $3,290,000. Institutional investors own 25.20% of the company’s stock.

About Karat Packaging

Karat Packaging Inc is a foodservice packaging company that manufactures and distributes disposable products for restaurants, cafés, convenience stores, supermarkets, institutional foodservice providers and other businesses. The company is headquartered in Chino, California, and serves customers primarily across North America through its distribution and manufacturing operations.

Its product portfolio includes paper and plastic cups, food containers, lids, cutlery, straws, gloves, napkins, bags and other supplies used for food preparation, packaging and takeout service.