Karat Packaging Inc. (NASDAQ:KRT) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Karat Packaging has a consensus analyst rating of “Hold” from six covering firms, with one sell, three hold, and two buy ratings. The average 12-month price target is $36.50.
• The company recently reported better-than-expected Q1 earnings, posting $0.34 EPS versus the $0.32 estimate and revenue of $116.95 million versus $112.98 million expected. Analysts now expect 1.78 EPS for the current year.
• Karat Packaging also pays a quarterly dividend of $0.45, equal to a 4.7% yield annualized. However, its payout ratio is 113.92%, which suggests the dividend is being paid out at a high rate relative to earnings.

Shares of Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) have received a consensus recommendation of "Hold" from the six research firms that are currently covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $36.50.

A number of research firms have recently commented on KRT. Wall Street Zen raised Karat Packaging from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. Weiss Ratings reissued a "hold (c+)" rating on shares of Karat Packaging in a research note on Thursday, June 11th. Bank of America raised their target price on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an "underperform" rating in a report on Tuesday, July 14th. Zacks Research lowered shares of Karat Packaging from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. Finally, The Goldman Sachs Group cut shares of Karat Packaging to a "neutral" rating in a report on Thursday, June 4th.

Institutional Investors Weigh In On Karat Packaging

Hedge funds and other institutional investors have recently bought and sold shares of the company. Clearstead Advisors LLC lifted its stake in Karat Packaging by 188.8% in the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company's stock valued at $34,000 after acquiring an additional 976 shares in the last quarter. CWM LLC grew its stake in shares of Karat Packaging by 61.5% during the 4th quarter. CWM LLC now owns 2,651 shares of the company's stock worth $60,000 after acquiring an additional 1,010 shares in the last quarter. Quarry LP acquired a new stake in shares of Karat Packaging in the third quarter valued at approximately $70,000. Deutsche Bank AG raised its holdings in shares of Karat Packaging by 142.8% in the fourth quarter. Deutsche Bank AG now owns 3,861 shares of the company's stock valued at $87,000 after purchasing an additional 2,271 shares during the last quarter. Finally, State of Wyoming bought a new stake in shares of Karat Packaging in the fourth quarter worth $122,000. Institutional investors and hedge funds own 25.20% of the company's stock.

Karat Packaging Price Performance

KRT opened at $38.70 on Thursday. The company has a quick ratio of 1.15, a current ratio of 2.29 and a debt-to-equity ratio of 0.15. Karat Packaging has a 12 month low of $20.61 and a 12 month high of $39.10. The company has a fifty day simple moving average of $30.96 and a 200 day simple moving average of $27.95. The stock has a market cap of $772.45 million, a P/E ratio of 24.49, a P/E/G ratio of 1.66 and a beta of 0.85.

Karat Packaging (NASDAQ:KRT - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.02. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%.The firm had revenue of $116.95 million for the quarter, compared to analyst estimates of $112.98 million. On average, research analysts expect that Karat Packaging will post 1.78 EPS for the current year.

Karat Packaging Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 21st were issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date was Thursday, May 21st. Karat Packaging's payout ratio is 113.92%.

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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