Karat Packaging (NASDAQ:KRT) Sets New 1-Year High - Time to Buy?

Key Points

• Karat Packaging shares hit a new 52-week high of $53.45 and last traded near $53.05, well above the 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: the consensus rating is Hold with an average price target of $47, despite recent upgrades from William Blair and Wall Street Zen.
• The company reported quarterly EPS of $1.48, substantially exceeding the $0.47 estimate, and raised its quarterly dividend to $0.47, equivalent to a 3.5% annualized yield.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report)'s stock price reached a new 52-week high on Thursday . The company traded as high as $53.45 and last traded at $53.05, with a volume of 247113 shares changing hands. The stock had previously closed at $52.20.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on KRT shares. William Blair upgraded Karat Packaging from a "market perform" rating to an "outperform" rating in a research report on Thursday, June 4th. The Goldman Sachs Group downgraded shares of Karat Packaging to a "neutral" rating in a research note on Thursday, June 4th. Weiss Ratings raised shares of Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 12th. Bank of America increased their price target on shares of Karat Packaging from $23.00 to $34.00 and gave the stock an "underperform" rating in a research report on Tuesday, July 14th. Finally, Wall Street Zen raised shares of Karat Packaging from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $47.00.

Karat Packaging Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 2.25. The firm has a market cap of $1.06 billion, a P/E ratio of 21.22, a P/E/G ratio of 1.53 and a beta of 0.84. The company's 50 day moving average is $45.89 and its 200 day moving average is $34.91.

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

Karat Packaging Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 21st were issued a $0.47 dividend. The ex-dividend date was Friday, August 21st. This is a positive change from Karat Packaging's previous quarterly dividend of $0.45. This represents a $1.88 dividend on an annualized basis and a yield of 3.5%. Karat Packaging's dividend payout ratio (DPR) is currently 75.20%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC bought a new stake in shares of Karat Packaging in the 2nd quarter valued at about $25,000. Compass Financial Management LLC acquired a new stake in shares of Karat Packaging in the second quarter valued at about $273,000. Two Sigma Securities LLC bought a new position in shares of Karat Packaging during the second quarter worth about $262,000. Corient Private Wealth LP bought a new position in shares of Karat Packaging during the second quarter worth about $228,000. Finally, Punch & Associates Investment Management Inc. acquired a new position in shares of Karat Packaging in the second quarter worth approximately $3,290,000. 25.20% of the stock is owned by institutional investors.

Karat Packaging Company Profile

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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