Bank of New York Mellon Corp Buys New Shares in Karat Packaging Inc. $KRT

Key Points

• Bank of New York Mellon initiated a 159,511-share position in Karat Packaging worth approximately $5.34 million, representing 0.80% of the company. Other institutional investors also increased or initiated stakes, with institutions owning 25.20% of KRT.
• Karat Packaging reported quarterly EPS of $1.48, beating the $0.47 consensus estimate, while revenue of $136.30 million slightly exceeded expectations.
• Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $36.50, below the reported share price of $48.39. The company also raised its quarterly dividend to $0.47, implying a 3.9% annual yield.

Bank of New York Mellon Corp bought a new position in Karat Packaging Inc. (NASDAQ:KRT - Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The firm bought 159,511 shares of the company's stock, valued at approximately $5,337,000. Bank of New York Mellon Corp owned 0.80% of Karat Packaging as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in KRT. GSA Capital Partners LLP bought a new position in shares of Karat Packaging during the second quarter valued at about $678,000. Walleye Capital LLC bought a new stake in shares of Karat Packaging in the 2nd quarter valued at about $684,000. Ranger Investment Management L.P. lifted its stake in shares of Karat Packaging by 8.1% in the 1st quarter. Ranger Investment Management L.P. now owns 325,104 shares of the company's stock valued at $9,077,000 after acquiring an additional 24,405 shares during the last quarter. Lazard Asset Management LLC boosted its holdings in Karat Packaging by 47.7% during the 1st quarter. Lazard Asset Management LLC now owns 27,678 shares of the company's stock valued at $773,000 after acquiring an additional 8,941 shares during the period. Finally, Punch & Associates Investment Management Inc. boosted its holdings in Karat Packaging by 10.4% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 69,115 shares of the company's stock valued at $1,930,000 after acquiring an additional 6,500 shares during the period. 25.20% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts have weighed in on KRT shares. William Blair upgraded Karat Packaging from a "market perform" rating to an "outperform" rating in a research report on Thursday, June 4th. The Goldman Sachs Group downgraded shares of Karat Packaging to a "neutral" rating in a research note on Thursday, June 4th. Bank of America upped their price target on shares of Karat Packaging from $23.00 to $34.00 and gave the company an "underperform" rating in a report on Tuesday, July 14th. Weiss Ratings raised shares of Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 12th. Finally, Lake Street Capital reissued a "buy" rating and issued a $39.00 price target on shares of Karat Packaging in a report on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $36.50.

Karat Packaging Trading Up 2.8%

Shares of KRT stock opened at $48.39 on Friday. Karat Packaging Inc. has a 52-week low of $20.61 and a 52-week high of $50.81. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 2.25. The firm has a market capitalization of $964.41 million, a PE ratio of 19.36, a PEG ratio of 1.38 and a beta of 0.84. The stock has a fifty day simple moving average of $41.96 and a two-hundred day simple moving average of $32.62.

Karat Packaging (NASDAQ:KRT - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $0.47 by $1.01. The business had revenue of $136.30 million for 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%. On average, analysts predict that Karat Packaging Inc. will post 2.63 EPS for the current fiscal year.

Karat Packaging Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 21st were given a $0.47 dividend. This is a boost from Karat Packaging's previous quarterly dividend of $0.45. This represents a $1.88 annualized dividend and a yield of 3.9%. The ex-dividend date was Friday, August 21st. Karat Packaging's dividend payout ratio (DPR) is presently 75.20%.

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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