Karat Packaging Inc. (NASDAQ:KRT) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Consensus "Hold": Five analysts give Karat Packaging a consensus Hold rating (1 sell, 2 hold, 1 buy, 1 strong buy) with an average 12‑month price target of $27.50; shares recently traded down about 6.8% to $28.34.
• Recent quarter beat expectations: Karat reported EPS of $0.34 versus $0.32 consensus and revenue of $116.95M versus $112.98M, with a return on equity of 19.63% and a net margin of 6.73%.
• High-yield dividend but stretched payout: the company declared a $0.45 quarterly dividend (annualized $1.80) for a 6.4% yield

Shares of Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) have received an average recommendation of "Hold" from the five brokerages that are presently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, two have issued a hold rating, one has given a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $27.50.

Several equities research analysts have recently issued reports on KRT shares. Wall Street Zen upgraded Karat Packaging from a "buy" rating to a "strong-buy" rating in a report on Sunday, March 22nd. Lake Street Capital restated a "buy" rating on shares of Karat Packaging in a report on Friday. Bank of America set a $24.00 price objective on Karat Packaging and gave the stock an "underperform" rating in a report on Friday, March 13th. Weiss Ratings restated a "hold (c+)" rating on shares of Karat Packaging in a report on Thursday, January 22nd. Finally, Zacks Research upgraded Karat Packaging from a "hold" rating to a "strong-buy" rating in a report on Friday, March 20th.

Karat Packaging Trading Down 6.8%

Shares of KRT stock traded down $2.07 during mid-day trading on Friday, hitting $28.34. 32,584 shares of the company's stock were exchanged, compared to its average volume of 75,888. Karat Packaging has a fifty-two week low of $20.61 and a fifty-two week high of $32.68. The stock has a 50-day simple moving average of $27.35 and a two-hundred day simple moving average of $25.00. The company has a quick ratio of 1.13, a current ratio of 2.30 and a debt-to-equity ratio of 0.15. The stock has a market cap of $565.73 million, a price-to-earnings ratio of 18.14, a PEG ratio of 1.15 and a beta of 0.93.

Karat Packaging (NASDAQ:KRT - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.02. Karat Packaging had a return on equity of 19.63% and a net margin of 6.73%.The business had revenue of $116.95 million for the quarter, compared to analysts' expectations of $112.98 million. Equities analysts expect that Karat Packaging will post 1.98 EPS for the current fiscal year.

Karat Packaging Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 21st will be given a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 6.4%. The ex-dividend date of this dividend is Thursday, May 21st. Karat Packaging's dividend payout ratio (DPR) is 115.38%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. State of Alaska Department of Revenue purchased a new position in shares of Karat Packaging in the 3rd quarter worth $27,000. Clearstead Advisors LLC raised its position in shares of Karat Packaging by 188.8% in the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company's stock worth $34,000 after buying an additional 976 shares during the period. CWM LLC raised its position in shares of Karat Packaging by 378.4% in the 3rd quarter. CWM LLC now owns 1,641 shares of the company's stock worth $41,000 after buying an additional 1,298 shares during the period. Quarry LP purchased a new position in shares of Karat Packaging in the 3rd quarter worth $70,000. Finally, Deutsche Bank AG raised its position in shares of Karat Packaging by 142.8% in the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company's stock worth $87,000 after buying an additional 2,271 shares during the period. 25.20% of the stock is owned by hedge funds and other institutional investors.

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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