Karat Packaging (NASDAQ:KRT) Sets New 12-Month High - Here's Why

Key Points

• Karat Packaging shares hit a new 52-week high on Tuesday, reaching as high as $35.67 before settling near $34.95. The move came on moderate volume of about 30,320 shares.
• Recent analyst actions have been mixed, with some firms downgrading the stock while others upgraded it. Overall, MarketBeat shows a consensus Hold rating and a target price of $31.50, below the current trading range.
• The company reported better-than-expected quarterly results, including EPS of $0.34 versus $0.32 expected and revenue of $116.95 million versus $112.98 million forecast. It also paid a quarterly dividend of $0.45, translating to a 5.1% annualized yield.

Shares of Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $35.67 and last traded at $34.9450, with a volume of 30320 shares trading hands. The stock had previously closed at $34.73.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Zacks Research cut shares of Karat Packaging from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. The Goldman Sachs Group lowered shares of Karat Packaging to a "neutral" rating in a research report on Thursday, June 4th. Weiss Ratings reissued a "hold (c+)" rating on shares of Karat Packaging in a research note on Thursday, June 11th. William Blair upgraded shares of Karat Packaging from a "market perform" rating to an "outperform" rating in a research report on Thursday, June 4th. Finally, Wall Street Zen raised shares of Karat Packaging from a "hold" rating to a "buy" rating in a research note on Sunday. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Karat Packaging has a consensus rating of "Hold" and a consensus target price of $31.50.

Karat Packaging Price Performance

The company has a 50-day moving average of $29.68 and a two-hundred day moving average of $27.22. 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 stock has a market capitalization of $704.47 million, a PE ratio of 22.30, a P/E/G ratio of 1.70 and a beta of 0.85.

Karat Packaging (NASDAQ:KRT - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.34 EPS for the quarter, beating 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 company had revenue of $116.95 million during the quarter, compared to analysts' expectations of $112.98 million. Sell-side analysts predict that Karat Packaging Inc. will post 1.78 EPS for the current fiscal year.

Karat Packaging Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date was Thursday, May 21st. Karat Packaging's payout ratio is presently 113.92%.

Hedge Funds Weigh In On Karat Packaging

A number of large investors have recently bought and sold shares of KRT. Vanguard Group Inc. boosted its holdings in shares of Karat Packaging by 12.0% in the 3rd quarter. Vanguard Group Inc. now owns 477,450 shares of the company's stock valued at $12,037,000 after purchasing an additional 51,179 shares during the last quarter. Wasatch Advisors LP increased its holdings in shares of Karat Packaging by 3.3% during the 2nd quarter. Wasatch Advisors LP now owns 330,961 shares of the company's stock worth $9,320,000 after buying an additional 10,617 shares during the last quarter. Ranger Investment Management L.P. increased its holdings 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 worth $9,077,000 after buying an additional 24,405 shares during the last quarter. Polar Asset Management Partners Inc. raised its position in shares of Karat Packaging by 57.1% in the 4th quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company's stock worth $7,089,000 after buying an additional 114,204 shares during the period. Finally, Bank of Montreal Can purchased a new position in shares of Karat Packaging in the 4th quarter worth $5,216,000. 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.

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