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

Shares of Karat Packaging Inc. (NASDAQ:KRT) gapped up before the market opened on Thursday . The stock had previously closed at $26.62, but opened at $28.49. Karat Packaging shares last traded at $28.73, with a volume of 20,501 shares.

Analyst Ratings Changes

Several research analysts have recently weighed in on KRT shares. The Goldman Sachs Group downgraded Karat Packaging to a “neutral” rating in a research note on Thursday. Lake Street Capital reissued a “buy” rating and set a $39.00 price objective on shares of Karat Packaging in a report on Friday, May 8th. Wall Street Zen cut Karat Packaging from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. William Blair raised Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday. Finally, Zacks Research cut Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $31.50.

Karat Packaging Price Performance

The business has a fifty day moving average of $28.13 and a 200-day moving average of $25.47. The firm has a market cap of $567.86 million, a PE ratio of 18.01, a PEG ratio of 1.40 and a beta of 0.90. The company has a current ratio of 2.29, a quick ratio of 1.15 and a debt-to-equity ratio of 0.15.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%.The business had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. As a group, research analysts predict that Karat Packaging Inc. will post 1.78 earnings per share for the current 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 $0.45 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 annualized dividend and a dividend yield of 6.3%. Karat Packaging’s dividend payout ratio (DPR) is presently 113.92%.

Institutional Trading of Karat Packaging

Institutional investors and hedge funds have recently modified their holdings of the business. Clearstead Advisors LLC raised its holdings in shares of Karat Packaging by 188.8% in the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after acquiring an additional 976 shares in the last quarter. CWM LLC raised its holdings in shares of Karat Packaging by 61.5% in the 4th quarter. CWM LLC now owns 2,651 shares of the company’s stock valued at $60,000 after acquiring an additional 1,010 shares in the last quarter. Quarry LP purchased a new stake in shares of Karat Packaging in the 3rd quarter valued at about $70,000. Deutsche Bank AG raised its holdings in shares of Karat Packaging by 142.8% in the 4th 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 in the last quarter. Finally, State of Wyoming purchased a new stake in shares of Karat Packaging in the 4th quarter valued at 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.