BlackRock Inc. Takes $19.84 Million Position in Karat Packaging Inc. $KRT

Key Points

• BlackRock acquired 592,941 shares of Karat Packaging worth approximately $19.84 million, giving it a 2.97% stake. Other institutions also increased or initiated positions, with institutional investors collectively owning 25.2% of KRT.
• Karat Packaging reported quarterly EPS of $1.48, well above the $0.47 analyst consensus, on revenue of $136.3 million. Analysts’ consensus rating remains “Hold,” with an average price target of $36.50.
• The company raised its quarterly dividend to $0.47 per share, or $1.88 annually, representing a 4.0% yield. KRT shares opened at $47.38, near their 12-month high of $50.81.

BlackRock Inc. acquired a new position in Karat Packaging Inc. (NASDAQ:KRT - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 592,941 shares of the company's stock, valued at approximately $19,840,000. BlackRock Inc. owned 2.97% of Karat Packaging as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also made changes to their positions in KRT. Harel Insurance Investments & Financial Services Ltd. increased its position in Karat Packaging by 87.2% in the 4th quarter. Harel Insurance Investments & Financial Services Ltd. now owns 107,730 shares of the company's stock worth $2,431,000 after buying an additional 50,178 shares during the period. Arrowstreet Capital Limited Partnership acquired a new position in shares of Karat Packaging during the first quarter worth approximately $437,000. Ranger Investment Management L.P. boosted its position in shares of Karat Packaging by 8.1% in the first 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 period. North Star Investment Management Corp. boosted its position in shares of Karat Packaging by 59.0% in the first quarter. North Star Investment Management Corp. now owns 97,000 shares of the company's stock valued at $2,708,000 after acquiring an additional 36,000 shares during the period. Finally, GSA Capital Partners LLP acquired a new stake in shares of Karat Packaging in the second quarter worth $678,000. Institutional investors and hedge funds own 25.20% of the company's stock.

Wall Street Analyst Weigh In

KRT has been the topic of a number of research reports. Bank of America boosted their target price on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an "underperform" rating in a research report on Tuesday, July 14th. Zacks Research downgraded shares of Karat Packaging from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. William Blair upgraded shares of 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 report on Thursday, June 4th. Finally, Wall Street Zen raised shares of Karat Packaging from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $36.50.

Karat Packaging Price Performance

Shares of KRT stock opened at $47.38 on Thursday. Karat Packaging Inc. has a 12 month low of $20.61 and a 12 month high of $50.81. The company has a market capitalization of $944.28 million, a P/E ratio of 18.95, a P/E/G ratio of 1.39 and a beta of 0.84. The stock has a 50 day moving average of $41.31 and a two-hundred day moving average of $32.36. The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13.

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

Karat Packaging Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 21st were issued a $0.47 dividend. This is a boost from Karat Packaging's previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.88 annualized dividend and a yield of 4.0%. Karat Packaging's payout ratio is presently 75.20%.

Karat Packaging Company Profile

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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