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

Karat Packaging Inc. (NASDAQ:KRT)’s share price hit a new 52-week high on Wednesday . The company traded as high as $33.77 and last traded at $33.4730, with a volume of 155409 shares trading hands. The stock had previously closed at $32.79.

Analyst Upgrades and Downgrades

KRT has been the subject of several research analyst reports. Zacks Research downgraded shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Lake Street Capital reissued a “buy” rating and set a $39.00 price objective on shares of Karat Packaging in a report on Friday, May 8th. Weiss Ratings restated a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, June 11th. William Blair raised Karat Packaging from a “market perform” rating to an “outperform” rating in a report on Thursday, June 4th. Finally, Wall Street Zen upgraded Karat Packaging from a “hold” rating to a “buy” rating in a research report on Saturday, June 13th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued 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 stock has a market cap of $668.12 million, a P/E ratio of 21.19, a P/E/G ratio of 1.63 and a beta of 0.90. The company’s 50 day moving average price is $28.73 and its 200-day moving average price is $26.52. 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 issued its quarterly earnings data on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.02. The company had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. As a group, sell-side analysts expect that Karat Packaging Inc. will post 1.78 earnings per share for the current year.

Karat Packaging Dividend Announcement

The business also recently disclosed 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. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date was Thursday, May 21st. Karat Packaging’s dividend payout ratio (DPR) is 113.92%.

Institutional Trading of Karat Packaging

Several institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. boosted its stake 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 last quarter. Jane Street Group LLC bought a new position in Karat Packaging during the first quarter worth $219,000. JPMorgan Chase & Co. raised its stake 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 during the last quarter. Hsbc Holdings PLC lifted its holdings in Karat Packaging by 41.1% in the second quarter. Hsbc Holdings PLC now owns 13,731 shares of the company’s stock valued at $379,000 after buying an additional 3,999 shares during the period. Finally, First Trust Advisors LP lifted its holdings in Karat Packaging by 3.9% in the second quarter. First Trust Advisors LP now owns 22,061 shares of the company’s stock valued at $621,000 after buying an additional 830 shares during the period. 25.20% of the stock is currently owned by institutional investors.

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.