Karat Packaging (NASDAQ:KRT) Hits New 52-Week High – Here’s Why

Karat Packaging Inc. (NASDAQ:KRT)’s stock price reached a new 52-week high during trading on Monday. The stock traded as high as $56.00 and last traded at $55.28, with a volume of 6,055 shares trading hands. The stock had previously closed at $54.58.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Bank of America raised their price target on Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a research note on Tuesday, July 14th. Weiss Ratings raised Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 12th. Wall Street Zen raised Karat Packaging from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Finally, Lake Street Capital reissued a “buy” rating and set a $60.00 target price on shares of Karat Packaging in a research report on Monday, September 14th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $47.00.

Karat Packaging Stock Performance

The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. The firm’s fifty day moving average price is $49.83 and its 200-day moving average price is $37.66. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of 21.54, a PEG ratio of 1.50 and a beta of 0.79.

Karat Packaging (NASDAQ:KRT) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $0.47 by $1.01. Karat Packaging had a net margin of 10.18% and a return on equity of 30.62%. The firm had revenue of $136.30 million for the quarter, compared to analyst estimates of $135.46 million. Analysts expect that Karat Packaging Inc. will post 2.63 earnings per share for the current year.

Karat Packaging Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 21st were issued a dividend of $0.47 per share. The ex-dividend date of this dividend was Friday, August 21st. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.45. This represents a $1.88 annualized dividend and a dividend yield of 3.5%. Karat Packaging’s dividend payout ratio is 75.20%.

Institutional Trading of Karat Packaging

A number of hedge funds and other institutional investors have recently made changes to their positions in KRT. Integrated Wealth Concepts LLC acquired a new stake in shares of Karat Packaging in the second quarter valued at approximately $25,000. GK Wealth Management LLC purchased a new position in shares of Karat Packaging during the third quarter worth approximately $106,000. Legal & General Group Plc acquired a new position in shares of Karat Packaging in the 2nd quarter valued at $75,000. Bard Associates Inc. acquired a new position in shares of Karat Packaging in the 2nd quarter valued at $167,000. Finally, Corient Private Wealth LP acquired a new position in shares of Karat Packaging in the 2nd quarter valued at $228,000. Institutional investors and hedge funds own 25.20% of the company’s stock.

Karat Packaging Company Profile

Karat Packaging Inc is a manufacturer and distributor of disposable foodservice products and supplies. The company serves restaurants, cafés, foodservice distributors, grocery stores, convenience stores, and other commercial and institutional customers, primarily in North America.

Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, napkins, gloves, bags, and related serving and packaging products. Karat Packaging offers products made from materials such as paper, plastic, aluminum, and compostable or other environmentally oriented alternatives, including products marketed under the Karat Earth brand.

Founded in 2000 and headquartered in Chino, California, the company operates through a combination of manufacturing, sourcing, distribution, and product development activities.