Karat Packaging Inc. $KRT Shares Acquired by Algert Global LLC

Key Points

• Algert Global increased its Karat Packaging stake by 85.5% in the second quarter, acquiring 56,361 additional shares for a total holding of 122,248 shares valued at approximately $4.09 million.
• Karat Packaging reported strong quarterly results, with EPS of $1.48 versus the $0.47 analyst consensus and revenue of $136.3 million. The company also raised its quarterly dividend to $0.47 per share, implying a 3.8% annualized yield.
• Shares opened at $49.80, near their one-year high, while analysts maintained a consensus “Hold” rating with a $36.50 price target, well below the current share price.

Algert Global LLC lifted its holdings in shares of Karat Packaging Inc. (NASDAQ:KRT - Free Report) by 85.5% during the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 122,248 shares of the company's stock after acquiring an additional 56,361 shares during the period. Algert Global LLC owned 0.61% of Karat Packaging worth $4,090,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Goldman Sachs Group Inc. lifted its stake in Karat Packaging by 19.6% during the first quarter. Goldman Sachs Group Inc. now owns 28,565 shares of the company's stock worth $759,000 after purchasing an additional 4,684 shares during the last quarter. Jane Street Group LLC purchased a new position in Karat Packaging in the first quarter valued at approximately $219,000. JPMorgan Chase & Co. increased its stake in Karat Packaging by 921.6% in the second quarter. JPMorgan Chase & Co. now owns 34,203 shares of the company's stock valued at $963,000 after purchasing an additional 30,855 shares during the last quarter. Hsbc Holdings PLC raised its holdings in Karat Packaging by 41.1% during the second quarter. Hsbc Holdings PLC now owns 13,731 shares of the company's stock worth $379,000 after purchasing an additional 3,999 shares in the last quarter. Finally, First Trust Advisors LP raised its holdings in Karat Packaging by 3.9% during the second quarter. First Trust Advisors LP now owns 22,061 shares of the company's stock worth $621,000 after purchasing an additional 830 shares in the last quarter. Institutional investors and hedge funds own 25.20% of the company's stock.

Karat Packaging Price Performance

Shares of NASDAQ:KRT opened at $49.80 on Friday. The company has a 50-day simple moving average of $39.88 and a 200-day simple moving average of $31.74. Karat Packaging Inc. has a one year low of $20.61 and a one year 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 stock has a market capitalization of $992.51 million, a price-to-earnings ratio of 19.92, a PEG ratio of 1.44 and a beta of 0.82.

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 analysts' consensus estimates of $0.47 by $1.01. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%.The firm had revenue of $136.30 million for the quarter, compared to analyst estimates of $135.46 million. On average, analysts predict that Karat Packaging Inc. will post 2.63 EPS for the current year.

Karat Packaging Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 21st will be paid a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 3.8%. This is a boost from Karat Packaging's previous quarterly dividend of $0.45. The ex-dividend date is Friday, August 21st. Karat Packaging's dividend payout ratio (DPR) is currently 75.20%.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on KRT shares. Wall Street Zen raised shares of Karat Packaging from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Zacks Research cut shares of Karat Packaging from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 12th. William Blair upgraded shares of Karat Packaging from a "market perform" rating to an "outperform" rating in a research note on Thursday, June 4th. Weiss Ratings raised Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 12th. Finally, The Goldman Sachs Group cut Karat Packaging to a "neutral" rating in a research report on Thursday, June 4th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $36.50.

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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