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

Key Points

• Karat Packaging shares reached a new 52-week high, trading as high as $54.78 and last changing hands at $54.56, well above its 50-day and 200-day moving averages.
• The company reported quarterly EPS of $1.48, significantly exceeding the $0.47 consensus estimate, while revenue of $136.3 million slightly topped forecasts. Analysts expect full-year EPS of approximately $2.63.
• Brokerage opinions remain mixed, with a consensus rating of “Hold” and a $47 price target, despite several recent upgrades. Karat also raised its quarterly dividend to $0.47, implying a 3.5% yield.

Shares of Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) reached a new 52-week high on Friday. The stock traded as high as $54.78 and last traded at $54.56, with a volume of 20918 shares traded. The stock had previously closed at $53.37.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on KRT. Lake Street Capital reaffirmed a "buy" rating and set a $60.00 target price on shares of Karat Packaging in a research report on Monday, September 14th. Weiss Ratings raised shares of Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 12th. Wall Street Zen upgraded shares of Karat Packaging from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. The Goldman Sachs Group lowered shares of Karat Packaging to a "neutral" rating in a research report on Thursday, June 4th. Finally, William Blair upgraded shares of Karat Packaging from a "market perform" rating to an "outperform" rating in a report on Thursday, June 4th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $47.00.

Karat Packaging Stock Performance

The stock has a market capitalization of $1.08 billion, a P/E ratio of 21.77, a price-to-earnings-growth ratio of 1.54 and a beta of 0.79. The company has a 50 day simple moving average of $47.67 and a 200-day simple moving average of $36.18. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.25 and a quick ratio of 1.25.

Karat Packaging (NASDAQ:KRT - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $1.48 earnings per share for the quarter, topping the consensus estimate of $0.47 by $1.01. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%.The company had revenue of $136.30 million during the quarter, compared to the consensus estimate of $135.46 million. On average, equities analysts forecast that Karat Packaging Inc. will post 2.63 EPS for the current year.

Karat Packaging Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 21st were given a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 3.5%. This is an increase from Karat Packaging's previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Friday, August 21st. Karat Packaging's payout ratio is presently 75.20%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of KRT. BlackRock Inc. bought a new stake in Karat Packaging during the 2nd quarter valued at $19,840,000. Ranger Investment Management L.P. bought a new position in shares of Karat Packaging in the second quarter worth $11,129,000. De Lisle Partners LLP purchased a new position in shares of Karat Packaging in the second quarter valued at $7,307,000. Dimensional Fund Advisors LP grew its position in shares of Karat Packaging by 8.6% in the first quarter. Dimensional Fund Advisors LP now owns 218,437 shares of the company's stock valued at $6,098,000 after purchasing an additional 17,326 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Karat Packaging during the 2nd quarter valued at $5,337,000. 25.20% of the stock is owned by institutional investors.

About Karat Packaging

Karat Packaging Inc is a foodservice packaging company that designs, manufactures, distributes, and sells disposable products for restaurants, foodservice operators, grocery stores, and other businesses. Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, bags, napkins, gloves, and related supplies.

The company offers products made from materials including plastic, paper, and other alternative materials through brands such as Karat and Karat Earth.

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