Karat Packaging (NASDAQ:KRT) Sees Large Volume Increase - Time to Buy?

Key Points

• Karat Packaging saw trading volume jump about 40% to 103,620 shares and its stock rose roughly 5% to $30.20 from a prior close of $28.75.
• Analyst coverage is mixed: MarketBeat's consensus is "Hold" with an average price target of $27.50 (below the current price), comprising one Strong Buy, two Holds and one Sell.
• The company beat the latest quarter (EPS $0.34 vs $0.28 estimate; revenue $115.6M vs $113.95M) but carries a high annualized dividend yield of 6.0% with a payout ratio above 115%, indicating potential sustainability concerns.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) saw an uptick in trading volume on Friday . 103,620 shares traded hands during trading, an increase of 40% from the previous session's volume of 74,255 shares.The stock last traded at $30.20 and had previously closed at $28.75.

Analyst Upgrades and Downgrades

Several research firms have commented on KRT. Bank of America set a $24.00 price objective on shares of Karat Packaging and gave the company an "underperform" rating in a report on Friday, March 13th. Wall Street Zen raised shares of Karat Packaging from a "buy" rating to a "strong-buy" rating in a report on Sunday, March 22nd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Karat Packaging in a report on Thursday, January 22nd. Finally, Zacks Research raised shares of Karat Packaging from a "hold" rating to a "strong-buy" rating in a report on Friday, March 20th. One analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Karat Packaging presently has a consensus rating of "Hold" and an average target price of $27.50.

Karat Packaging Stock Up 5.0%

The company has a debt-to-equity ratio of 0.15, a current ratio of 2.30 and a quick ratio of 1.13. The company has a market cap of $602.91 million, a PE ratio of 19.36, a price-to-earnings-growth ratio of 1.11 and a beta of 0.99. The company has a fifty day moving average price of $26.43 and a 200 day moving average price of $24.53.

Karat Packaging (NASDAQ:KRT - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.28 by $0.06. Karat Packaging had a return on equity of 19.63% and a net margin of 6.73%.The company had revenue of $115.62 million during the quarter, compared to analyst estimates of $113.95 million. As a group, analysts anticipate that Karat Packaging Inc. will post 1.66 EPS for the current year.

Karat Packaging Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 20th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, February 20th. This represents a $1.80 annualized dividend and a dividend yield of 6.0%. Karat Packaging's payout ratio is presently 115.38%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Wellington Management Group LLP purchased a new position in shares of Karat Packaging during the fourth quarter worth about $711,000. Polymer Capital Management US LLC grew its holdings in shares of Karat Packaging by 15.3% during the fourth quarter. Polymer Capital Management US LLC now owns 14,421 shares of the company's stock worth $325,000 after purchasing an additional 1,918 shares in the last quarter. Inspire Investing LLC grew its holdings in shares of Karat Packaging by 13.6% during the fourth quarter. Inspire Investing LLC now owns 20,784 shares of the company's stock worth $469,000 after purchasing an additional 2,496 shares in the last quarter. Engineers Gate Manager LP grew its holdings in shares of Karat Packaging by 13.2% during the fourth quarter. Engineers Gate Manager LP now owns 27,167 shares of the company's stock worth $613,000 after purchasing an additional 3,170 shares in the last quarter. Finally, Polar Asset Management Partners Inc. grew its holdings in shares of Karat Packaging by 57.1% during the fourth quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company's stock worth $7,089,000 after purchasing an additional 114,204 shares in the last quarter. Hedge funds and other 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.