Karat Packaging (NASDAQ:KRT) Downgraded to Hold at Truist Financial

Truist Financial downgraded shares of Karat Packaging (NASDAQ:KRT) from a buy rating to a hold rating in a report issued on Friday, Marketbeat Ratings reports. They currently have $28.00 price target on the stock, down from their prior price target of $34.00.

Karat Packaging Price Performance

Shares of Karat Packaging stock traded down $4.15 on Friday, hitting $23.84. 171,025 shares of the company traded hands, compared to its average volume of 45,100. Karat Packaging has a 52 week low of $17.23 and a 52 week high of $30.94. The business has a 50-day simple moving average of $28.43 and a 200 day simple moving average of $27.92. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.69 and a current ratio of 3.33. The stock has a market capitalization of $476.20 million, a P/E ratio of 16.11 and a beta of 1.06.

Karat Packaging (NASDAQ:KRT) last announced its quarterly earnings results on Thursday, May 9th. The company reported $0.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.04). Karat Packaging had a net margin of 7.31% and a return on equity of 21.94%. The company had revenue of $95.61 million during the quarter, compared to the consensus estimate of $99.76 million. During the same quarter in the prior year, the firm posted $0.45 earnings per share. Research analysts expect that Karat Packaging will post 1.95 earnings per share for the current fiscal year.

Karat Packaging Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Investors of record on Wednesday, August 21st will be given a $0.35 dividend. The ex-dividend date of this dividend is Wednesday, August 21st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 5.87%. Karat Packaging’s dividend payout ratio is currently 94.59%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Karat Packaging by 0.8% during the first quarter. Vanguard Group Inc. now owns 348,678 shares of the company’s stock valued at $9,976,000 after purchasing an additional 2,804 shares in the last quarter. Acadian Asset Management LLC raised its position in shares of Karat Packaging by 8.2% during the 2nd quarter. Acadian Asset Management LLC now owns 283,278 shares of the company’s stock valued at $8,375,000 after buying an additional 21,383 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Karat Packaging by 2.7% in the 2nd quarter. Bank of New York Mellon Corp now owns 170,310 shares of the company’s stock valued at $5,038,000 after acquiring an additional 4,408 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Karat Packaging by 2.9% in the second quarter. Dimensional Fund Advisors LP now owns 121,473 shares of the company’s stock worth $3,592,000 after acquiring an additional 3,397 shares in the last quarter. Finally, Los Angeles Capital Management LLC increased its stake in Karat Packaging by 93.1% during the fourth quarter. Los Angeles Capital Management LLC now owns 98,258 shares of the company’s stock worth $2,442,000 after acquiring an additional 47,377 shares during the last quarter. 25.20% of the stock is currently owned by institutional investors.

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.