224,850 Shares in Karat Packaging Inc. $KRT Bought by KTF Investments LLC

Key Points

• KTF Investments LLC opened a new position in Karat Packaging by buying 224,850 shares (~$5.08M) in Q4, representing about 0.8% of KTF’s holdings and leaving institutional investors with roughly 25.2% ownership of the company.
• Karat Packaging beat Q1 estimates with $0.34 EPS vs. $0.28 expected and $115.62M in revenue, reporting a 6.7% net margin and 19.6% return on equity.
• The company pays a generous 6.1% dividend yield ($0.45 quarterly) but with a high payout ratio of 115.4%; analysts hold a consensus "Hold" rating with an average price target of $27.50 vs. the recent stock price around $29.27.

KTF Investments LLC purchased a new position in Karat Packaging Inc. (NASDAQ:KRT - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 224,850 shares of the company's stock, valued at approximately $5,075,000. Karat Packaging comprises about 0.8% of KTF Investments LLC's holdings, making the stock its 28th largest holding. KTF Investments LLC owned about 1.12% of Karat Packaging at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Merit Financial Group LLC bought a new stake in shares of Karat Packaging in the fourth quarter worth $376,000. CWM LLC increased its stake in Karat Packaging by 61.5% during the fourth quarter. CWM LLC now owns 2,651 shares of the company's stock valued at $60,000 after purchasing an additional 1,010 shares during the last quarter. DAVENPORT & Co LLC increased its stake in Karat Packaging by 24.5% during the fourth quarter. DAVENPORT & Co LLC now owns 13,825 shares of the company's stock valued at $312,000 after purchasing an additional 2,725 shares during the last quarter. CWA Asset Management Group LLC bought a new stake in Karat Packaging during the fourth quarter valued at $2,398,000. Finally, JPMorgan Chase & Co. increased its stake in Karat Packaging by 4.8% during the third quarter. JPMorgan Chase & Co. now owns 35,838 shares of the company's stock valued at $903,000 after purchasing an additional 1,635 shares during the last quarter. Institutional investors own 25.20% of the company's stock.

Wall Street Analysts Forecast Growth

KRT has been the subject of several recent research reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Karat Packaging in a research note on Thursday, January 22nd. Wall Street Zen upgraded shares of Karat Packaging from a "buy" rating to a "strong-buy" rating in a research note on Sunday, March 22nd. Bank of America set a $24.00 target price on shares of Karat Packaging and gave the company an "underperform" rating in a research note on Friday, March 13th. Finally, Zacks Research upgraded shares of Karat Packaging from a "hold" rating to a "strong-buy" rating in a research note on Friday, March 20th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $27.50.

Karat Packaging Stock Up 0.2%

KRT stock opened at $29.27 on Tuesday. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.30 and a quick ratio of 1.13. Karat Packaging Inc. has a 1-year low of $20.61 and a 1-year high of $32.68. The firm has a fifty day moving average price of $26.89 and a two-hundred day moving average price of $24.79. The firm has a market cap of $584.23 million, a price-to-earnings ratio of 18.76, a PEG ratio of 1.14 and a beta of 0.99.

Karat Packaging (NASDAQ:KRT - Get Free Report) last announced its quarterly earnings results on Thursday, March 12th. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.06. Karat Packaging had a net margin of 6.73% and a return on equity of 19.63%. The company had revenue of $115.62 million during the quarter, compared to the consensus estimate of $113.95 million. Research analysts predict that Karat Packaging Inc. will post 1.98 EPS for the current year.

Karat Packaging Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 20th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, February 20th. This represents a $1.80 annualized dividend and a dividend yield of 6.1%. Karat Packaging's payout ratio is 115.38%.

About Karat Packaging

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.

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