Karat Packaging (NASDAQ:KRT) Sets New 12-Month High – Still a Buy?

Karat Packaging Inc. (NASDAQ:KRT) reached a new 52-week high during trading on Monday . The stock traded as high as $40.15 and last traded at $40.15, with a volume of 9491 shares traded. The stock had previously closed at $38.73.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Zacks Research lowered shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Bank of America increased their price objective on Karat Packaging from $23.00 to $34.00 and gave the stock an “underperform” rating in a report on Tuesday, July 14th. Weiss Ratings restated a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, June 11th. Lake Street Capital reaffirmed a “buy” rating and set a $39.00 target price on shares of Karat Packaging in a research note on Friday, May 8th. Finally, William Blair upgraded Karat Packaging from a “market perform” rating to an “outperform” rating in a research report on Thursday, June 4th. 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 company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $36.50.

Karat Packaging Stock Performance

The stock has a market cap of $831.93 million, a price-to-earnings ratio of 26.38, a PEG ratio of 1.77 and a beta of 0.85. The company’s 50 day simple moving average is $32.03 and its 200 day simple moving average is $28.44. 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 issued its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share 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 company had revenue of $116.95 million during the quarter, compared to analyst estimates of $112.98 million. On average, equities research analysts anticipate that Karat Packaging Inc. will post 1.78 earnings per share for the current year.

Karat Packaging Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 21st were given a dividend of $0.45 per share. The ex-dividend date was Thursday, May 21st. This represents a $1.80 annualized dividend and a dividend yield of 4.3%. Karat Packaging’s dividend payout ratio (DPR) is 113.92%.

Institutional Trading of Karat Packaging

Several institutional investors have recently modified their holdings of the company. Clearstead Advisors LLC grew 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 worth $34,000 after acquiring an additional 976 shares during the period. CWM LLC lifted its holdings in 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 during the last quarter. Quarry LP acquired a new stake in Karat Packaging in the 3rd quarter valued at about $70,000. Deutsche Bank AG boosted its position in shares of Karat Packaging by 142.8% during the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock valued at $87,000 after purchasing an additional 2,271 shares in the last quarter. Finally, State of Wyoming bought a new stake in shares of Karat Packaging in the 4th quarter worth approximately $122,000. Institutional investors and hedge funds 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.