Brokerages Set Karat Packaging Inc. (NASDAQ:KRT) Price Target at $36.50

Karat Packaging Inc. (NASDAQ:KRT) has earned an average recommendation of “Hold” from the six ratings firms that are presently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, three have given a hold recommendation and two have issued a buy recommendation on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $36.50.

A number of analysts have weighed in on KRT shares. The Goldman Sachs Group cut Karat Packaging to a “neutral” rating in a research report on Thursday, June 4th. Lake Street Capital reissued a “buy” rating and issued a $39.00 target price on shares of Karat Packaging in a report on Friday, May 8th. Wall Street Zen cut Karat Packaging from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Weiss Ratings reaffirmed 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 research report on Tuesday, May 12th.

Karat Packaging Price Performance

Shares of NASDAQ:KRT opened at $40.59 on Thursday. The company has a 50-day simple moving average of $32.28 and a 200-day simple moving average of $28.56. Karat Packaging has a one year low of $20.61 and a one year high of $42.09. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29. The stock has a market capitalization of $810.18 million, a price-to-earnings ratio of 25.69, a PEG ratio of 1.80 and a beta of 0.85.

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, topping analysts’ consensus estimates of $0.32 by $0.02. The firm had revenue of $116.95 million for the quarter, compared to analyst estimates of $112.98 million. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%. On average, analysts predict that Karat Packaging will post 1.78 EPS for the current year.

Karat Packaging Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 21st were issued a $0.45 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 annualized dividend and a dividend yield of 4.4%. Karat Packaging’s payout ratio is presently 113.92%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. boosted its holdings in 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 in the last quarter. Jane Street Group LLC purchased a new position in shares of Karat Packaging during the 1st quarter worth approximately $219,000. JPMorgan Chase & Co. raised its stake in shares of Karat Packaging by 921.6% during the 2nd 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 holdings in shares of Karat Packaging by 41.1% in the 2nd 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 grew its holdings in Karat Packaging by 3.9% during the second 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 owned by hedge funds and other institutional investors.

Karat Packaging Company Profile

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.