Karat Packaging (NASDAQ:KRT) Hits New 1-Year High - Here's Why

Key Points

• Karat Packaging shares reached a new 52-week high of $38.44, continuing a recent upward move in the stock.
• Analyst sentiment is mixed: several firms have downgraded or upgraded the stock recently, but the overall consensus remains Hold with a target price of $36.50.
• The company reported better-than-expected quarterly results, including EPS of $0.34 versus $0.32 expected and revenue of $116.95 million, while also paying a quarterly dividend of $0.45 per share.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $38.44 and last traded at $38.3750, with a volume of 189595 shares trading hands. The stock had previously closed at $38.09.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on KRT shares. Zacks Research lowered shares of Karat Packaging from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. The Goldman Sachs Group downgraded shares of Karat Packaging to a "neutral" rating in a research note on Thursday, June 4th. William Blair upgraded shares of Karat Packaging from a "market perform" rating to an "outperform" rating in a research note on Thursday, June 4th. Wall Street Zen raised shares of Karat Packaging from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Karat Packaging in a research note on Thursday, June 11th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $36.50.

Karat Packaging Stock Performance

The company has a quick ratio of 1.15, a current ratio of 2.29 and a debt-to-equity ratio of 0.15. The firm has a 50 day moving average price of $30.27 and a 200 day moving average price of $27.62. The stock has a market cap of $774.83 million, a PE ratio of 24.55, a price-to-earnings-growth ratio of 1.65 and a beta of 0.85.

Karat Packaging (NASDAQ:KRT - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.02. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The company had revenue of $116.95 million during the quarter, compared to analyst estimates of $112.98 million. As a group, research analysts forecast that Karat Packaging Inc. will post 1.78 earnings per share for the current year.

Karat Packaging Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were paid a $0.45 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 dividend on an annualized basis and a yield of 4.6%. Karat Packaging's payout ratio is 113.92%.

Institutional Trading of Karat Packaging

Several hedge funds and other institutional investors have recently bought and sold shares of KRT. Stifel Financial Corp lifted its position in Karat Packaging by 1.8% during the 4th quarter. Stifel Financial Corp now owns 22,798 shares of the company's stock worth $515,000 after acquiring an additional 398 shares during the period. First Trust Advisors LP increased its holdings in shares of Karat Packaging by 1.9% in the fourth quarter. First Trust Advisors LP now owns 27,345 shares of the company's stock valued at $617,000 after purchasing an additional 508 shares during the period. Lazard Asset Management LLC increased its holdings in shares of Karat Packaging by 1.9% in the second quarter. Lazard Asset Management LLC now owns 40,390 shares of the company's stock valued at $1,137,000 after purchasing an additional 770 shares during the period. Clearstead Advisors LLC raised its stake in shares of Karat Packaging by 188.8% in the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company's stock worth $34,000 after purchasing an additional 976 shares during the last quarter. Finally, CWM LLC raised its stake in shares of Karat Packaging by 61.5% in the fourth quarter. CWM LLC now owns 2,651 shares of the company's stock worth $60,000 after purchasing an additional 1,010 shares during the last quarter. Institutional investors own 25.20% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.