Punch & Associates Investment Management Inc. Purchases New Stake in Karat Packaging Inc. $KRT

Key Points

• Punch & Associates acquired 98,320 shares of Karat Packaging in the second quarter, worth approximately $3.29 million and representing about 0.49% of the company. Institutional investors and hedge funds collectively own 25.2% of KRT.
• Karat Packaging reported quarterly earnings of $1.48 per share, significantly exceeding the $0.47 consensus estimate, while revenue of $136.3 million slightly topped expectations.
• The company raised its quarterly dividend to $0.47 per share, or $1.88 annually, implying a 3.8% yield. Analyst sentiment remains mixed, with a consensus “Hold” rating and a $36.50 price target.

Punch & Associates Investment Management Inc. bought a new position in shares of Karat Packaging Inc. (NASDAQ:KRT - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 98,320 shares of the company's stock, valued at approximately $3,290,000. Punch & Associates Investment Management Inc. owned about 0.49% of Karat Packaging as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Karat Packaging in the 2nd quarter valued at about $19,840,000. Ranger Investment Management L.P. acquired a new stake in Karat Packaging in the second quarter valued at approximately $11,129,000. Bank of Montreal Can bought a new stake in shares of Karat Packaging during the fourth quarter worth $5,216,000. De Lisle Partners LLP bought a new stake in shares of Karat Packaging during the second quarter worth $7,307,000. Finally, Polar Asset Management Partners Inc. acquired a new position in Karat Packaging in the 3rd quarter worth about $5,039,000. 25.20% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Lake Street Capital restated a "buy" rating and issued a $39.00 price target on shares of Karat Packaging in a research report on Friday, May 8th. Wall Street Zen upgraded shares of Karat Packaging from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Zacks Research cut Karat Packaging from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. William Blair raised shares of Karat Packaging from a "market perform" rating to an "outperform" rating in a research report on Thursday, June 4th. Finally, Weiss Ratings raised Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 12th. Three 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $36.50.

Karat Packaging Stock Performance

Shares of KRT opened at $49.26 on Thursday. Karat Packaging Inc. has a 1 year low of $20.61 and a 1 year high of $50.81. The stock's fifty day moving average price is $39.49 and its two-hundred day moving average price is $31.57. The firm has a market cap of $981.75 million, a PE ratio of 19.70, a PEG ratio of 1.45 and a beta of 0.82. 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 (NASDAQ:KRT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $1.48 earnings per share for the quarter, topping the consensus estimate of $0.47 by $1.01. The firm 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%. On average, equities research analysts forecast that Karat Packaging Inc. will post 2.63 EPS for the current year.

Karat Packaging Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 21st will be issued a $0.47 dividend. This represents a $1.88 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Karat Packaging's previous quarterly dividend of $0.45. Karat Packaging's payout ratio is 75.20%.

Karat Packaging 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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