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 stock traded as high as $28.17 and last traded at $28.1950. 6,412 shares traded hands 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.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on KRT. The Goldman Sachs Group cut Karat Packaging to a “neutral” rating in a report on Thursday. 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. 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. Finally, Wall Street Zen cut Karat Packaging from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $31.50.

Karat Packaging Trading Up 1.6%

The company has a market cap of $570.36 million, a PE ratio of 18.09, a price-to-earnings-growth ratio of 1.32 and a beta of 0.90. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.29 and a quick ratio of 1.15. The company has a 50-day moving average of $28.13 and a 200 day moving average of $25.45.

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

Karat Packaging Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were given a $0.45 dividend. The ex-dividend date was Thursday, May 21st. This represents a $1.80 annualized dividend and a yield of 6.3%. Karat Packaging’s dividend payout ratio (DPR) is currently 113.92%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. CWA Asset Management Group LLC purchased a new position in shares of Karat Packaging during the fourth quarter valued at approximately $2,398,000. Harel Insurance Investments & Financial Services Ltd. boosted its position in shares of Karat Packaging by 87.2% during the fourth quarter. Harel Insurance Investments & Financial Services Ltd. now owns 107,730 shares of the company’s stock valued at $2,431,000 after buying an additional 50,178 shares during the period. North Star Investment Management Corp. purchased a new position in shares of Karat Packaging during the fourth quarter valued at approximately $1,377,000. Polar Asset Management Partners Inc. purchased a new position in shares of Karat Packaging during the third quarter valued at approximately $5,039,000. Finally, KTF Investments LLC purchased a new position in shares of Karat Packaging during the fourth quarter valued at approximately $5,075,000. 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.