Karat Packaging (NASDAQ:KRT) Sees Strong Trading Volume – Should You Buy?

Shares of Karat Packaging Inc. (NASDAQ:KRT) saw unusually-strong trading volume on Wednesday . Approximately 137,752 shares changed hands during mid-day trading, an increase of 62% from the previous session’s volume of 85,193 shares.The stock last traded at $30.52 and had previously closed at $29.80.

Analysts Set New Price Targets

A number of research analysts recently commented on KRT shares. Bank of America set a $24.00 price objective on shares of Karat Packaging and gave the company an “underperform” rating in a research note on Friday, March 13th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Karat Packaging in a research note on Thursday, June 11th. William Blair upgraded Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. Wall Street Zen upgraded Karat Packaging from a “hold” rating to a “buy” rating in a research report on Saturday, June 13th. Finally, Zacks Research downgraded Karat Packaging from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $31.50.

Karat Packaging Price Performance

The company’s 50 day moving average price is $28.52 and its 200-day moving average price is $26.30. The company has a market cap of $620.36 million, a price-to-earnings ratio of 19.67, a PEG ratio of 1.53 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 released 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. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The business had revenue of $116.95 million for the quarter, compared to the consensus estimate of $112.98 million. On average, equities research analysts forecast that Karat Packaging Inc. will post 1.78 earnings per share for the current fiscal year.

Karat Packaging Announces Dividend

The business 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 5.8%. Karat Packaging’s dividend payout ratio is currently 113.92%.

Institutional Investors Weigh In On Karat Packaging

Several large investors have recently modified their holdings of KRT. Clearstead Advisors LLC raised its position in shares of Karat Packaging by 188.8% during the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock worth $34,000 after purchasing an additional 976 shares during the period. CWM LLC boosted its position 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 purchasing an additional 1,010 shares during the period. Quarry LP purchased a new position in Karat Packaging in the 3rd quarter worth about $70,000. Deutsche Bank AG increased 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 in the last quarter. Finally, State of Wyoming acquired a new stake in Karat Packaging during the 4th quarter worth 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.