Karat Packaging (NASDAQ:KRT) Stock Price Down 8.6% - What's Next?

Key Points

• Karat Packaging's stock slid 8.6% midday to about $27.80 from a prior close of $30.41 on light volume (20,555 shares, down 73% versus its 75,882 average).
• The company beat Q1 estimates with EPS of $0.34 (vs. $0.32) and revenue of $116.95M (vs. $112.98M), and carries a market cap near $574M with a P/E of 18.25.
• Karat declared a quarterly dividend of $0.45 (annualized yield 6.3%) but with a payout ratio of 115%, while analyst opinions remain mixed—consensus Hold and an average target of $31.33.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report)'s stock price fell 8.6% during mid-day trading on Friday . The company traded as low as $28.90 and last traded at $27.7950. 20,555 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 75,882 shares. The stock had previously closed at $30.41.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Wall Street Zen raised Karat Packaging from a "buy" rating to a "strong-buy" rating in a research note on Sunday, March 22nd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Karat Packaging in a research note on Thursday, January 22nd. Lake Street Capital reaffirmed a "buy" rating and set a $39.00 price target on shares of Karat Packaging in a research note on Friday. Bank of America set a $24.00 price target on Karat Packaging and gave the stock an "underperform" rating in a research note on Friday, March 13th. Finally, Zacks Research raised Karat Packaging from a "hold" rating to a "strong-buy" rating in a report on Friday, March 20th. One research analyst has rated the stock with a Strong Buy rating, one has assigned 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, the company presently has a consensus rating of "Hold" and an average target price of $31.33.

Karat Packaging Trading Down 5.5%

The company has a market capitalization of $573.85 million, a P/E ratio of 18.25, a price-to-earnings-growth ratio of 1.15 and a beta of 0.93. 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 firm has a fifty day moving average price of $27.35 and a 200-day moving average price of $25.00.

Karat Packaging (NASDAQ:KRT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.02. The company had revenue of $116.95 million during the quarter, compared to analyst estimates of $112.98 million. Karat Packaging had a return on equity of 19.63% and a net margin of 6.73%. On average, equities research analysts anticipate that Karat Packaging Inc. will post 1.98 earnings per share for the current year.

Karat Packaging Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 6.3%. The ex-dividend date of this dividend is Thursday, May 21st. Karat Packaging's dividend payout ratio is 115.38%.

Hedge Funds Weigh In On Karat Packaging

Several institutional investors and hedge funds have recently bought and sold shares of KRT. Bank of Montreal Can purchased a new stake in shares of Karat Packaging in the fourth quarter worth $5,216,000. KTF Investments LLC purchased a new stake in shares of Karat Packaging in the fourth quarter worth $5,075,000. Polar Asset Management Partners Inc. purchased a new stake in shares of Karat Packaging in the third quarter worth $5,039,000. Marshall Wace LLP purchased a new stake in shares of Karat Packaging in the second quarter worth $4,312,000. Finally, CWA Asset Management Group LLC purchased a new stake in shares of Karat Packaging in the fourth quarter worth $2,398,000. 25.20% of the stock is owned by 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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