Karat Packaging (NASDAQ:KRT) Hits New 52-Week High – Still a Buy?

Karat Packaging Inc. (NASDAQ:KRT) shares hit a new 52-week high during trading on Thursday . The company traded as high as $31.18 and last traded at $30.90, with a volume of 33471 shares trading hands. The stock had previously closed at $30.66.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on KRT shares. The Goldman Sachs Group cut shares of Karat Packaging to a “neutral” rating in a research note on Thursday, June 4th. William Blair raised Karat Packaging from a “market perform” rating to an “outperform” rating in a research note on Thursday, June 4th. Bank of America set a $24.00 target price on shares of Karat Packaging and gave the stock an “underperform” rating in a research report on Friday, March 13th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Karat Packaging in a report on Thursday, June 11th. Finally, Zacks Research lowered shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $31.50.

Karat Packaging Price Performance

The company’s fifty day moving average price is $28.58 and its two-hundred day moving average price is $26.34. The company has a market cap of $633.56 million, a price-to-earnings ratio of 20.09, a PEG ratio of 1.55 and a beta of 0.90. The company has a quick ratio of 1.15, a current ratio of 2.29 and a debt-to-equity ratio of 0.15.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.02. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%.The firm had revenue of $116.95 million for the quarter, compared to the consensus estimate of $112.98 million. On average, equities research analysts forecast that Karat Packaging Inc. will post 1.78 EPS for the current fiscal year.

Karat Packaging Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were given a $0.45 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.7%. Karat Packaging’s payout ratio is currently 113.92%.

Hedge Funds Weigh In On Karat Packaging

A number of institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. raised its holdings in shares of Karat Packaging by 19.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 28,565 shares of the company’s stock valued at $759,000 after purchasing an additional 4,684 shares during the period. Jane Street Group LLC bought a new stake in shares of Karat Packaging in the first quarter valued at about $219,000. JPMorgan Chase & Co. grew its position in Karat Packaging by 921.6% during the second quarter. JPMorgan Chase & Co. now owns 34,203 shares of the company’s stock worth $963,000 after buying an additional 30,855 shares in the last quarter. Hsbc Holdings PLC lifted its position in Karat Packaging by 41.1% during the second quarter. Hsbc Holdings PLC now owns 13,731 shares of the company’s stock worth $379,000 after purchasing an additional 3,999 shares during the period. Finally, First Trust Advisors LP lifted its holdings in shares of Karat Packaging by 3.9% during the 2nd quarter. First Trust Advisors LP now owns 22,061 shares of the company’s stock worth $621,000 after acquiring an additional 830 shares during the period. 25.20% of the stock is currently owned by institutional investors and hedge funds.

About Karat Packaging

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.