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

Karat Packaging Inc. (NASDAQ:KRT)’s share price gapped up prior to trading on Monday . The stock had previously closed at $28.75, but opened at $30.10. Karat Packaging shares last traded at $29.87, with a volume of 6,267 shares.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Zacks Research upgraded shares of Karat Packaging from a “hold” rating to a “strong-buy” rating in a report on Friday, March 20th. Wall Street Zen upgraded shares of Karat Packaging from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 22nd. Weiss Ratings restated a “hold (c+)” rating on shares of Karat Packaging in a report on Thursday, January 22nd. Finally, Bank of America set a $24.00 target price on shares of Karat Packaging and gave the stock an “underperform” rating in a report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $27.50.

Karat Packaging Stock Down 4.6%

The business’s fifty day moving average is $26.64 and its two-hundred day moving average is $24.64. The company has a market cap of $567.46 million, a P/E ratio of 18.22, a price-to-earnings-growth ratio of 1.16 and a beta of 0.99. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.13 and a current ratio of 2.30.

Karat Packaging (NASDAQ:KRT) last announced its quarterly earnings data on Thursday, March 12th. The company reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.06. Karat Packaging had a net margin of 6.73% and a return on equity of 19.63%. The company had revenue of $115.62 million during the quarter, compared to analyst estimates of $113.95 million. Equities analysts predict that Karat Packaging Inc. will post 1.98 EPS for the current year.

Karat Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 20th were issued a dividend of $0.45 per share. The ex-dividend date was Friday, February 20th. This represents a $1.80 dividend on an annualized basis and a yield of 6.3%. Karat Packaging’s dividend payout ratio (DPR) is presently 115.38%.

Institutional Investors Weigh In On Karat Packaging

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Stifel Financial Corp lifted its holdings in Karat Packaging by 1.8% during the 4th quarter. Stifel Financial Corp now owns 22,798 shares of the company’s stock valued at $515,000 after buying an additional 398 shares in the last quarter. First Trust Advisors LP lifted its holdings in Karat Packaging by 1.9% during the 4th quarter. First Trust Advisors LP now owns 27,345 shares of the company’s stock valued at $617,000 after buying an additional 508 shares in the last quarter. Lazard Asset Management LLC increased its position in Karat Packaging by 1.9% during the 2nd quarter. Lazard Asset Management LLC now owns 40,390 shares of the company’s stock valued at $1,137,000 after purchasing an additional 770 shares during the period. Clearstead Advisors LLC increased its position in Karat Packaging by 188.8% during the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after purchasing an additional 976 shares during the period. Finally, CWM LLC increased its position in Karat Packaging by 61.5% during 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. 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.