Karat Packaging Inc. (NASDAQ:KRT) Stock Has Consensus Target Price of $47.00

Key Points

• Analyst consensus is “Hold” among six brokerages, with three buys, two holds and one sell; the average 12-month price target is $47.00.
• Karat Packaging reported quarterly EPS of $1.48, exceeding the $0.47 consensus estimate, while revenue reached $136.3 million versus expectations of $135.46 million.
• The company increased its quarterly dividend to $0.47, or $1.88 annualized, representing a 3.4% yield; institutional investors own 25.2% of its shares.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) has been given an average rating of "Hold" by the six brokerages that are covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $47.00.

KRT has been the subject of several research analyst reports. Weiss Ratings raised Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 12th. Bank of America lifted their price target on Karat Packaging from $23.00 to $34.00 and gave the stock an "underperform" rating in a research note on Tuesday, July 14th. Wall Street Zen upgraded Karat Packaging from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Finally, Lake Street Capital reiterated a "buy" rating and set a $60.00 price objective on shares of Karat Packaging in a research report on Monday, September 14th.

Hedge Funds Weigh In On Karat Packaging

Large investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC bought a new stake in Karat Packaging in the second quarter worth $25,000. Compass Financial Management LLC bought a new position in shares of Karat Packaging during the second quarter valued at about $273,000. Two Sigma Securities LLC purchased a new position in shares of Karat Packaging in the second quarter worth about $262,000. Corient Private Wealth LP bought a new stake in shares of Karat Packaging in the 2nd quarter valued at about $228,000. Finally, Punch & Associates Investment Management Inc. bought a new stake in shares of Karat Packaging in the 2nd quarter valued at about $3,290,000. Hedge funds and other institutional investors own 25.20% of the company's stock.

Karat Packaging Trading Up 0.2%

Shares of KRT stock opened at $54.68 on Tuesday. The company's fifty day simple moving average is $48.24 and its two-hundred day simple moving average is $36.55. The stock has a market capitalization of $1.09 billion, a price-to-earnings ratio of 21.87, a PEG ratio of 1.60 and a beta of 0.79. 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 has a 1 year low of $20.61 and a 1 year high of $55.36.

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

Karat Packaging Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 21st were paid a $0.47 dividend. This is an increase from Karat Packaging's previous quarterly dividend of $0.45. This represents a $1.88 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Friday, August 21st. Karat Packaging's payout ratio is currently 75.20%.

Karat Packaging Company Profile

Karat Packaging Inc is a manufacturer and distributor of disposable foodservice products and supplies. The company serves restaurants, cafés, foodservice distributors, grocery stores, convenience stores, and other commercial and institutional customers, primarily in North America.

Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, napkins, gloves, bags, and related serving and packaging products. Karat Packaging offers products made from materials such as paper, plastic, aluminum, and compostable or other environmentally oriented alternatives, including products marketed under the Karat Earth brand.

Founded in 2000 and headquartered in Chino, California, the company operates through a combination of manufacturing, sourcing, distribution, and product development activities.

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