Karat Packaging (NASDAQ:KRT) Sees Strong Trading Volume – Still a Buy?

Karat Packaging Inc. (NASDAQ:KRT) shares saw unusually-high trading volume on Wednesday . Approximately 26,402 shares changed hands during trading, a decline of 8% from the previous session’s volume of 28,579 shares.The stock last traded at $31.59 and had previously closed at $31.69.

Wall Street Analysts Forecast Growth

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

Karat Packaging Stock Down 1.3 %

The company has a market capitalization of $620.12 million, a PE ratio of 22.20 and a beta of 1.08. The stock’s 50 day moving average is $30.42 and its 200 day moving average is $28.15. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.82 and a current ratio of 3.12.

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 analysts’ consensus estimates of $0.51 by ($0.04). The company had revenue of $112.77 million for the quarter, compared to the consensus estimate of $113.58 million. Karat Packaging had a net margin of 6.78% and a return on equity of 19.84%. During the same quarter in the previous year, the firm posted $0.47 earnings per share. On average, sell-side analysts anticipate that Karat Packaging Inc. will post 1.66 EPS for the current fiscal year.

Karat Packaging Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Wednesday, November 20th were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 5.17%. The ex-dividend date was Wednesday, November 20th. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.35. Karat Packaging’s dividend payout ratio is 114.29%.

Institutional Trading of Karat Packaging

Several institutional investors and hedge funds have recently modified their holdings of the business. US Bancorp DE bought a new position in shares of Karat Packaging in the third quarter worth approximately $30,000. Copeland Capital Management LLC bought a new position in shares of Karat Packaging in the 3rd quarter worth $49,000. Nisa Investment Advisors LLC raised its position in shares of Karat Packaging by 497.7% during the 3rd 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 in the last quarter. Harel Insurance Investments & Financial Services Ltd. lifted its holdings in shares of Karat Packaging by 40.8% during the 4th 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 during the last quarter. Finally, Exchange Traded Concepts LLC purchased a new position in Karat Packaging in the fourth quarter worth $291,000. Hedge funds and other institutional investors own 25.20% of the company’s stock.

About Karat Packaging

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.