Karat Packaging (NASDAQ:KRT) Stock Price Down 5.4% – Time to Sell?

Karat Packaging Inc. (NASDAQ:KRT)’s share price traded down 5.4% during trading on Thursday . The company traded as low as $26.10 and last traded at $26.16. 21,286 shares changed hands during trading, a decline of 74% from the average session volume of 82,436 shares. The stock had previously closed at $27.66.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Lake Street Capital restated a “buy” rating and set a $39.00 price objective on shares of Karat Packaging in a research report on Friday, May 8th. Bank of America set a $24.00 price objective on shares of Karat Packaging and gave the stock an “underperform” rating in a research report on Friday, March 13th. Zacks Research downgraded shares of Karat Packaging from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. Finally, Wall Street Zen downgraded shares of Karat Packaging from a “buy” rating to a “hold” rating in a research report on Sunday, May 17th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $31.50.

Karat Packaging Stock Performance

The company has a current ratio of 2.29, a quick ratio of 1.15 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $529.94 million, a price-to-earnings ratio of 16.80, a PEG ratio of 1.20 and a beta of 0.93. The stock’s 50 day moving average price is $28.09 and its two-hundred day moving average price is $25.17.

Karat Packaging (NASDAQ:KRT) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The business had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. On average, analysts forecast that Karat Packaging Inc. will post 1.98 EPS for the current year.

Karat Packaging Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 21st will be paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 6.8%. The ex-dividend date of this dividend is Thursday, May 21st. Karat Packaging’s dividend payout ratio is presently 113.92%.

Institutional Investors Weigh In On Karat Packaging

Large investors have recently added to or reduced their stakes in the business. State of Alaska Department of Revenue acquired a new stake in Karat Packaging in the 3rd quarter valued at about $27,000. Clearstead Advisors LLC grew its stake in Karat Packaging by 188.8% in the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after acquiring an additional 976 shares during the last quarter. CWM LLC grew its stake in Karat Packaging by 61.5% in the 4th quarter. CWM LLC now owns 2,651 shares of the company’s stock valued at $60,000 after acquiring an additional 1,010 shares during the last quarter. Quarry LP acquired a new stake in Karat Packaging in the 3rd quarter valued at about $70,000. Finally, Deutsche Bank AG grew its stake in Karat Packaging by 142.8% in the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock valued at $87,000 after acquiring an additional 2,271 shares during the last quarter. 25.20% of the stock is 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.