Karat Packaging Inc. (NASDAQ:KRT) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Karat Packaging, with one sell, two hold and three buy recommendations. The average 12-month price target is $36.50, below the stock’s reported $46.77 opening price.
• Karat Packaging reported a strong quarterly performance, earning $1.48 per share versus the $0.47 consensus estimate and generating $136.3 million in revenue. Analysts expect full-year EPS of approximately $2.63.
• The company increased its quarterly dividend to $0.47 per share, equivalent to an annualized $1.88 payout and a 4.0% yield; institutional investors own 25.2% of the shares.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) has been assigned a consensus rating of "Hold" from the six ratings firms that are currently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $36.50.

A number of equities analysts have recently weighed in on the company. Wall Street Zen raised Karat Packaging from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. The Goldman Sachs Group lowered Karat Packaging to a "neutral" rating in a research note on Thursday, June 4th. William Blair upgraded Karat Packaging from a "market perform" rating to an "outperform" rating in a report on Thursday, June 4th. Bank of America lifted their price target on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an "underperform" rating in a research note on Tuesday, July 14th. Finally, Weiss Ratings raised shares of Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 12th.

Karat Packaging Stock Performance

KRT opened at $46.77 on Friday. Karat Packaging has a 1-year low of $20.61 and a 1-year high of $50.81. The stock has a market cap of $932.13 million, a P/E ratio of 18.71, a P/E/G ratio of 1.37 and a beta of 0.84. The stock's 50 day simple moving average is $43.08 and its 200 day simple moving average is $33.28. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.25 and a quick ratio of 1.25.

Karat Packaging (NASDAQ:KRT - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $1.01. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%.The business had revenue of $136.30 million during the quarter, compared to the consensus estimate of $135.46 million. As a group, equities analysts anticipate that Karat Packaging will post 2.63 EPS for the current fiscal year.

Karat Packaging Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 21st were given a dividend of $0.47 per share. The ex-dividend date was Friday, August 21st. This represents a $1.88 dividend on an annualized basis and a yield of 4.0%. This is an increase from Karat Packaging's previous quarterly dividend of $0.45. Karat Packaging's payout ratio is presently 75.20%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Integrated Wealth Concepts LLC acquired a new stake in Karat Packaging in the 2nd quarter valued at approximately $25,000. Clearstead Advisors LLC lifted its holdings in 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 during the last quarter. Quarry LP acquired a new stake in Karat Packaging during the third quarter valued at approximately $70,000. Legal & General Group Plc acquired a new stake in shares of Karat Packaging during the 2nd quarter valued at $75,000. Finally, Deutsche Bank AG boosted its position 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 purchasing an additional 2,271 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.

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