Karat Packaging (NASDAQ:KRT) Shares Up 10.1% – Still a Buy?

Karat Packaging Inc. (NASDAQ:KRT) traded up 10.1% during trading on Monday. The stock traded as high as $36.69 and last traded at $36.9270. 62,943 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 119,800 shares. The stock had previously closed at $33.54.

Analyst Ratings Changes

Several equities research analysts have issued reports on KRT shares. Wall Street Zen downgraded shares of Karat Packaging from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings raised shares of Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 12th. Bank of America raised their target price on shares of Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a research note on Tuesday, July 14th. Finally, Lake Street Capital restated a “buy” rating and set a $60.00 target price on shares of Karat Packaging in a report on Monday, September 14th. Three 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 company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $47.00.

Karat Packaging Price Performance

The business’s 50 day moving average price is $51.53 and its 200-day moving average price is $36.31. The company has a quick ratio of 1.25, a current ratio of 2.25 and a debt-to-equity ratio of 0.13. The company has a market cap of $739.58 million, a PE ratio of 15.67, a price-to-earnings-growth ratio of 0.92 and a beta of 0.79.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, November 5th. The company reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.17). The firm had revenue of $134.74 million during the quarter, compared to analysts’ expectations of $140.33 million. Karat Packaging had a net margin of 9.39% and a return on equity of 28.67%. As a group, analysts forecast that Karat Packaging Inc. will post 2.63 earnings per share for the current year.

Karat Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Thursday, November 19th will be issued a $0.47 dividend. The ex-dividend date is Thursday, November 19th. This represents a $1.88 dividend on an annualized basis and a yield of 5.1%. Karat Packaging’s payout ratio is currently 79.66%.

Institutional Trading of Karat Packaging

Large investors have recently modified their holdings of the business. Mawer Investment Management Ltd. grew its stake in shares of Karat Packaging by 570.2% during the third quarter. Mawer Investment Management Ltd. now owns 208,330 shares of the company’s stock valued at $10,948,000 after acquiring an additional 177,246 shares in the last quarter. Diversified Trust Co acquired a new position in shares of Karat Packaging in the third quarter worth about $232,000. Ritholtz Wealth Management lifted its stake in shares of Karat Packaging by 5.9% in the third quarter. Ritholtz Wealth Management now owns 31,740 shares of the company’s stock worth $1,668,000 after acquiring an additional 1,777 shares in the last quarter. State of Wyoming acquired a new position in shares of Karat Packaging in the third quarter worth about $342,000. Finally, BOKF NA purchased a new position in Karat Packaging in the third quarter valued at about $444,000. 25.20% of the stock is currently owned by institutional investors and hedge funds.

Karat Packaging Company Profile

Karat Packaging Inc is a foodservice packaging company that manufactures and distributes disposable products for restaurants, cafés, convenience stores, supermarkets, institutional foodservice providers and other businesses. The company is headquartered in Chino, California, and serves customers primarily across North America through its distribution and manufacturing operations.

Its product portfolio includes paper and plastic cups, food containers, lids, cutlery, straws, gloves, napkins, bags and other supplies used for food preparation, packaging and takeout service.