Karat Packaging (NASDAQ:KRT) Sees Large Volume Increase – Here’s What Happened

Karat Packaging Inc. (NASDAQ:KRT) saw unusually-high trading volume on Wednesday . 137,752 shares changed hands during mid-day trading, an increase of 62% from the previous session’s volume of 85,193 shares.The stock last traded at $30.52 and had previously closed at $29.80.

Analyst Ratings Changes

KRT has been the subject of several recent research reports. Zacks Research cut Karat Packaging from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. The Goldman Sachs Group lowered Karat Packaging to a “neutral” rating in a research report on Thursday, June 4th. William Blair raised shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a research note on Thursday, June 4th. Lake Street Capital reaffirmed a “buy” rating and set a $39.00 target price on shares of Karat Packaging in a report on Friday, May 8th. Finally, Bank of America set a $24.00 target price on shares of Karat Packaging and gave the company an “underperform” rating in a research note on Friday, March 13th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $31.50.

Karat Packaging Trading Up 2.0%

The stock has a market cap of $606.71 million, a PE ratio of 19.25, a price-to-earnings-growth ratio of 1.48 and a beta of 0.90. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29. The company has a 50 day moving average of $28.45 and a two-hundred day moving average of $26.17.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $112.98 million. Sell-side analysts anticipate that Karat Packaging Inc. will post 1.78 earnings per share for the current fiscal year.

Karat Packaging Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 21st were given a dividend of $0.45 per share. The ex-dividend date was Thursday, May 21st. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.9%. Karat Packaging’s dividend payout ratio (DPR) is 113.92%.

Institutional Investors Weigh In On Karat Packaging

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Ranger Investment Management L.P. raised its position in Karat Packaging by 8.1% during the first quarter. Ranger Investment Management L.P. now owns 325,104 shares of the company’s stock worth $9,077,000 after acquiring an additional 24,405 shares during the period. Lazard Asset Management LLC grew its position in shares of Karat Packaging by 47.7% in the first quarter. Lazard Asset Management LLC now owns 27,678 shares of the company’s stock valued at $773,000 after purchasing an additional 8,941 shares during the period. Punch & Associates Investment Management Inc. grew its position in shares of Karat Packaging by 10.4% in the first quarter. Punch & Associates Investment Management Inc. now owns 69,115 shares of the company’s stock valued at $1,930,000 after purchasing an additional 6,500 shares during the period. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Karat Packaging during the first quarter worth about $437,000. Finally, Dimensional Fund Advisors LP raised its position in shares of Karat Packaging by 8.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 218,437 shares of the company’s stock worth $6,098,000 after purchasing an additional 17,326 shares during the last quarter. Hedge funds and other institutional investors own 25.20% of the company’s stock.

Karat Packaging Company Profile

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.