Bank of America Initiates Coverage on Karat Packaging (NASDAQ:KRT)

Key Points

• Bank of America has initiated coverage on Karat Packaging (NASDAQ:KRT) with a rating of "neutral" and set a price target of $28.00, indicating a potential 6.46% upside from its previous close.
• Other research firms have varied ratings on the stock, with Truist Financial raising its price objective from $28.00 to $31.00, while the consensus rating remains a "Hold" with an average price target of $31.67.
• CEO Alan Yu sold 750,000 shares of Karat Packaging for a total of $20.25 million, which decreased his ownership stake by nearly 10.8%.

Analysts at Bank of America began coverage on shares of Karat Packaging (NASDAQ:KRT - Get Free Report) in a note issued to investors on Wednesday, MarketBeat.com reports. The brokerage set a "neutral" rating and a $28.00 price target on the stock. Bank of America's target price points to a potential upside of 6.46% from the company's previous close.

Several other research firms have also issued reports on KRT. Truist Financial increased their price objective on shares of Karat Packaging from $28.00 to $31.00 and gave the stock a "hold" rating in a research report on Monday, May 12th. Wall Street Zen lowered shares of Karat Packaging from a "strong-buy" rating to a "buy" rating in a report on Saturday. Three analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $31.67.

Karat Packaging Price Performance

Karat Packaging stock opened at $26.30 on Wednesday. Karat Packaging has a 52-week low of $23.00 and a 52-week high of $33.89. The firm has a fifty day moving average of $27.97 and a 200-day moving average of $28.46. The firm has a market capitalization of $528.37 million, a P/E ratio of 16.54 and a beta of 1.11. The company has a quick ratio of 1.53, a current ratio of 2.68 and a debt-to-equity ratio of 0.29.

Insider Buying and Selling

In other Karat Packaging news, CEO Alan Yu sold 750,000 shares of the firm's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $27.00, for a total transaction of $20,250,000.00. Following the transaction, the chief executive officer owned 6,203,805 shares of the company's stock, valued at approximately $167,502,735. This trade represents a 10.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 66.10% of the company's stock.

Hedge Funds Weigh In On Karat Packaging

Several large investors have recently bought and sold shares of KRT. GAMMA Investing LLC increased its stake in Karat Packaging by 4,151.4% during the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock valued at $40,000 after buying an additional 1,453 shares during the period. Deutsche Bank AG lifted its position in shares of Karat Packaging by 773.6% during the 4th quarter. Deutsche Bank AG now owns 1,590 shares of the company's stock valued at $48,000 after acquiring an additional 1,408 shares during the last quarter. Copeland Capital Management LLC boosted its stake in shares of Karat Packaging by 58.3% during the 2nd quarter. Copeland Capital Management LLC now owns 2,083 shares of the company's stock worth $59,000 after acquiring an additional 767 shares in the last quarter. Comerica Bank boosted its stake in shares of Karat Packaging by 107.8% during the 4th quarter. Comerica Bank now owns 5,262 shares of the company's stock worth $159,000 after acquiring an additional 2,730 shares in the last quarter. Finally, Wells Fargo & Company MN boosted its stake in shares of Karat Packaging by 20.8% during the 4th quarter. Wells Fargo & Company MN now owns 5,538 shares of the company's stock worth $168,000 after acquiring an additional 955 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.

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