Karat Packaging Inc. $KRT Shares Acquired by CWA Asset Management Group LLC

Key Points

• CWA Asset Management Group increased its Karat Packaging stake by 35.9% in the third quarter, acquiring 48,906 additional shares for a total holding of 185,066 shares worth approximately $9.7 million.
• Karat Packaging reported quarterly EPS of $1.48, exceeding analysts’ $0.47 estimate, while revenue of $136.3 million also topped expectations. Analysts project full-year EPS of $2.63.
• The company raised its quarterly dividend to $0.47 per share, representing a $1.88 annualized payout and a 3.5% yield; institutional investors collectively own 25.2% of KRT.

CWA Asset Management Group LLC lifted its stake in shares of Karat Packaging Inc. (NASDAQ:KRT - Free Report) by 35.9% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 185,066 shares of the company's stock after acquiring an additional 48,906 shares during the quarter. CWA Asset Management Group LLC owned approximately 0.93% of Karat Packaging worth $9,725,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of KRT. Integrated Wealth Concepts LLC bought a new position in Karat Packaging in the second quarter worth approximately $25,000. USA Financial Formulas purchased a new position in Karat Packaging during the 3rd quarter worth $46,000. Legal & General Group Plc bought a new stake in Karat Packaging during the 2nd quarter valued at $75,000. GK Wealth Management LLC bought a new stake in Karat Packaging during the 3rd quarter valued at $106,000. Finally, Bard Associates Inc. bought a new stake in Karat Packaging during the 2nd quarter valued at $167,000. Institutional investors own 25.20% of the company's stock.

Karat Packaging Price Performance

NASDAQ KRT opened at $53.15 on Tuesday. The company has a market cap of $1.06 billion, a PE ratio of 21.26, a P/E/G ratio of 1.47 and a beta of 0.79. The firm's 50 day moving average price is $50.51 and its 200-day moving average price is $38.39. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 2.25. Karat Packaging Inc. has a 52-week low of $20.61 and a 52-week high of $56.06.

Karat Packaging (NASDAQ:KRT - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.48 EPS for the quarter, topping analysts' consensus estimates of $0.47 by $1.01. The company had revenue of $136.30 million during the quarter, compared to the consensus estimate of $135.46 million. Karat Packaging had a net margin of 10.18% and a return on equity of 30.62%. Sell-side analysts forecast that Karat Packaging Inc. will post 2.63 EPS for the current fiscal year.

Karat Packaging Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 21st were paid a dividend of $0.47 per share. This is a boost from Karat Packaging's previous quarterly dividend of $0.45. The ex-dividend date was Friday, August 21st. This represents a $1.88 annualized dividend and a dividend yield of 3.5%. Karat Packaging's dividend payout ratio (DPR) is presently 75.20%.

Analyst Upgrades and Downgrades

KRT has been the subject of several research reports. Wall Street Zen upgraded Karat Packaging from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Bank of America raised their price target on Karat Packaging from $23.00 to $34.00 and gave the company an "underperform" rating in a research note on Tuesday, July 14th. Lake Street Capital restated a "buy" rating and issued a $60.00 price objective on shares of Karat Packaging in a report on Monday, September 14th. Finally, Weiss Ratings upgraded Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 12th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Karat Packaging has an average rating of "Hold" and a consensus price target of $47.00.

Karat Packaging 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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