Karat Packaging (NASDAQ:KRT) Sees Strong Trading Volume – Time to Buy?

Shares of Karat Packaging Inc. (NASDAQ:KRT) saw unusually-strong trading volume on Thursday . Approximately 28,143 shares were traded during mid-day trading, a decline of 18% from the previous session’s volume of 34,453 shares.The stock last traded at $30.77 and had previously closed at $31.05.

Analyst Ratings Changes

Several analysts recently weighed in on KRT shares. William Blair downgraded Karat Packaging from an “outperform” rating to a “market perform” rating in a research report on Thursday, January 2nd. Stifel Nicolaus raised their price target on shares of Karat Packaging from $32.00 to $36.00 and gave the company a “buy” rating in a research note on Wednesday, December 11th.

Karat Packaging Price Performance

The company has a current ratio of 3.12, a quick ratio of 1.82 and a debt-to-equity ratio of 0.29. The firm has a market cap of $626.23 million, a P/E ratio of 22.34 and a beta of 1.08. The business has a 50-day moving average of $30.26 and a two-hundred day moving average of $28.05.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings data on Thursday, November 7th. The company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.51 by ($0.04). Karat Packaging had a net margin of 6.78% and a return on equity of 19.84%. The firm had revenue of $112.77 million during the quarter, compared to analyst estimates of $113.58 million. During the same period in the prior year, the company earned $0.47 EPS. On average, sell-side analysts anticipate that Karat Packaging Inc. will post 1.66 earnings per share for the current fiscal year.

Karat Packaging Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Wednesday, November 20th were paid a $0.40 dividend. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.35. This represents a $1.60 dividend on an annualized basis and a dividend yield of 5.12%. The ex-dividend date of this dividend was Wednesday, November 20th. Karat Packaging’s payout ratio is currently 114.29%.

Hedge Funds Weigh In On Karat Packaging

Hedge funds and other institutional investors have recently bought and sold shares of the company. US Bancorp DE acquired a new position in shares of Karat Packaging during the third quarter worth approximately $30,000. Copeland Capital Management LLC bought a new position in shares of Karat Packaging in the third quarter valued at $49,000. Nisa Investment Advisors LLC grew its holdings in shares of Karat Packaging by 497.7% during the third quarter. Nisa Investment Advisors LLC now owns 3,676 shares of the company’s stock valued at $95,000 after buying an additional 3,061 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. increased its position in shares of Karat Packaging by 40.8% during the fourth quarter. Harel Insurance Investments & Financial Services Ltd. now owns 5,180 shares of the company’s stock worth $157,000 after acquiring an additional 1,500 shares in the last quarter. Finally, Rhumbline Advisers lifted its position in Karat Packaging by 4.4% in the 2nd quarter. Rhumbline Advisers now owns 9,203 shares of the company’s stock valued at $272,000 after acquiring an additional 387 shares in the last quarter. Institutional investors and hedge funds own 25.20% of the company’s stock.

Karat Packaging Company Profile

Karat Packaging Inc, together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand.