Karat Packaging (NASDAQ:KRT) Hits New 52-Week High - Should You Buy?

Key Points

• Karat Packaging shares reached a new 52-week high of $42.30, substantially above their 50-day and 200-day moving averages of $33.41 and $29.00, respectively.
• Analyst sentiment is mixed: three analysts rate the stock Buy, two Hold and one Sell, resulting in a consensus Hold rating and a $36.50 target price—below the recent trading level.
• The company exceeded quarterly expectations, reporting $0.34 in EPS versus a $0.32 estimate and revenue of $116.95 million versus $112.98 million expected. Karat Packaging posted a 6.61% net margin and 19.87% return on equity.

Shares of Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) hit a new 52-week high during trading on Wednesday . The stock traded as high as $42.30 and last traded at $42.28, with a volume of 7759 shares changing hands. The stock had previously closed at $41.09.

Wall Street Analyst Weigh In

KRT has been the subject of a number of recent analyst reports. Weiss Ratings raised shares of Karat Packaging from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, July 29th. Zacks Research cut shares of Karat Packaging from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 12th. William Blair upgraded Karat Packaging from a "market perform" rating to an "outperform" rating in a research note on Thursday, June 4th. The Goldman Sachs Group lowered Karat Packaging to a "neutral" rating in a report on Thursday, June 4th. Finally, Wall Street Zen downgraded Karat Packaging from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Karat Packaging currently has a consensus rating of "Hold" and a consensus target price of $36.50.

Karat Packaging Price Performance

The business's fifty day moving average is $33.41 and its 200-day moving average is $29.00. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.29 and a quick ratio of 1.15. The firm has a market cap of $853.23 million, a PE ratio of 27.05, a P/E/G ratio of 1.77 and a beta of 0.82.

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

Hedge Funds Weigh In On Karat Packaging

Several institutional investors have recently bought and sold shares of KRT. Walleye Capital LLC purchased a new stake in Karat Packaging in the second quarter worth $684,000. Ranger Investment Management L.P. lifted its position in shares of Karat Packaging by 8.1% during the 1st quarter. Ranger Investment Management L.P. now owns 325,104 shares of the company's stock valued at $9,077,000 after buying an additional 24,405 shares during the last quarter. Lazard Asset Management LLC grew its stake in shares of Karat Packaging by 47.7% during the 1st quarter. Lazard Asset Management LLC now owns 27,678 shares of the company's stock worth $773,000 after acquiring an additional 8,941 shares during the period. Punch & Associates Investment Management Inc. grew its stake in shares of Karat Packaging by 10.4% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 69,115 shares of the company's stock worth $1,930,000 after acquiring an additional 6,500 shares during the period. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in Karat Packaging in the 1st quarter worth about $437,000. Hedge funds and other institutional investors own 25.20% of the company's stock.

Karat Packaging Company 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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