Karat Packaging (NASDAQ:KRT) Shares Up 5.9% – Should You Buy?

Shares of Karat Packaging Inc. (NASDAQ:KRT) shot up 5.9% during mid-day trading on Friday . The company traded as high as $28.17 and last traded at $28.1950. 6,412 shares were traded during mid-day trading, a decline of 92% from the average session volume of 82,985 shares. The stock had previously closed at $26.62.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on KRT. The Goldman Sachs Group downgraded Karat Packaging to a “neutral” rating in a research note on Thursday. Lake Street Capital restated a “buy” rating and issued a $39.00 price target on shares of Karat Packaging in a research note on Friday, May 8th. William Blair raised Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday. Bank of America set a $24.00 target price on Karat Packaging and gave the stock an “underperform” rating in a report on Friday, March 13th. Finally, Wall Street Zen cut Karat Packaging from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $31.50.

Karat Packaging Trading Up 1.6%

The stock has a fifty day moving average of $28.13 and a 200 day moving average of $25.45. The company has a market capitalization of $570.36 million, a P/E ratio of 18.09, a PEG ratio of 1.32 and a beta of 0.90. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, May 7th. The company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02. The company had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%. As a group, equities research analysts anticipate that Karat Packaging Inc. will post 1.78 EPS for the current fiscal year.

Karat Packaging Dividend Announcement

The firm also recently declared 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 6.3%. Karat Packaging’s dividend payout ratio (DPR) is currently 113.92%.

Institutional Investors Weigh In On Karat Packaging

A number of institutional investors and hedge funds have recently bought and sold shares of KRT. Clearstead Advisors LLC raised its holdings in Karat Packaging by 188.8% during the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after acquiring an additional 976 shares during the period. CWM LLC raised its holdings in Karat Packaging by 61.5% during the fourth quarter. CWM LLC now owns 2,651 shares of the company’s stock valued at $60,000 after acquiring an additional 1,010 shares during the period. Quarry LP bought a new stake in Karat Packaging during the third quarter valued at about $70,000. Deutsche Bank AG raised its holdings in Karat Packaging by 142.8% during the fourth quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock valued at $87,000 after acquiring an additional 2,271 shares during the period. Finally, State of Wyoming bought a new stake in Karat Packaging during the fourth quarter valued at about $122,000. 25.20% of the stock is owned by institutional investors.

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.